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Compensation Estimation Features

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Compensation estimation is the process of estimating how much compensation will result from applying one or more opportunities against existing compensation plans and plan rules. What-if criteria can be applied to opportunities to determine the results from alternative compensation scenarios.

In most business environments, incentive compensation plans serve as the primary motivator of sales and service effort and energy. With current incentive compensation systems, however, the direction and motivation given by the compensation plan can be ineffective because it is reactive rather than proactive. Sales representatives are not rewarded until after a deal has closed.

By using the estimating compensation feature in the Siebel Incentive Compensation application, sales representatives can estimate compensation on live deals before they close the deals. They can review estimated compensation for each of their opportunities, apply what-if criteria to those deals, and then model how their compensation changes based on the new criteria.

This feature allows sales representatives to focus on the strategic opportunities that matter most to them and the company. It allows real-time feedback on a selling strategy as the representative changes prices, adds new products, changes discounts, and so on. It also lets the representative immediately see the effect of these changes on compensation.

The estimating compensation feature applies the existing compensation plans and rules that the compensation administrator uses for compensation calculation at the end of the period. This feature provides administrators with an integrated solution that combines opportunity management with incentive compensation.

Siebel Incentive Compensation currently supports the following plan elements:

Nonaggregate, non-cumulative rules (simple and tiered)
Nonaggregate cumulative % quota (simple and tiered)
Cumulative measure period
Variable target incentive (with precalculated scripts)
Caps
Hurdles (nonaggregate, noncumulative)
Filters

NOTE:  Estimating Compensation is also available for users working offline with the mobile client. This allows the disconnected user to make calculations when the user is not connected to the server. In disconnected mode, calculations for estimating compensation are performed using the user's local database, but the users must first synchronize the database to download the latest plan information before performing estimations. For more information about synchronization, see Fundamentals.

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