Siebel Incentive Compensation Administration Guide > Plan Design >

Creating a Hurdle

When you create a hurdle, you identify the performance measures that will be used as evaluation criteria before payout is made to the employee. For example, a hurdle might be the number of sales that are necessary before a bonus is paid on margin. A single hurdle can be associated with multiple plans and plan rules.

For example, Table 6 shows that Aggregate hurdles (at the transaction level and the transaction detail level) and Bonus-Other hurdles are supported against any kind of rule, while Nonaggregate hurdles (at the transaction level) are supported when associated with nonaggregated rules.

Table 6.  Supported Aggregate and Nonaggregate Hurdles and Rules
 
Aggregate Hurdle
(Transaction Level)
Aggregate Hurdle (Transaction Detail)
Nonaggregate Hurdle
(Transaction Level)
Nonaggregate Hurdle (Transaction Detail)
Bonus-Other Hurdle
 
Aggregate Rule
(Transaction)
Supported
Supported
Not Supported
Not Supported
Supported
Aggregate Rule
(Transaction Detail)
Supported
Supported
Not Supported
Not Supported
Supported
Nonaggregate Rule
(Transaction)
Supported
Supported
Supported
Not Supported
Supported
Nonaggregate Rule
(Transaction Detail)
Supported
Supported
Not Supported
Supported
Supported
Bonus-Other Rule
Supported
Supported
Not Supported
Not Supported
Supported

You can create stand-alone hurdles and hurdle definitions. You can associate hurdles with a plan and to a rule. Using stand-alone hurdles eliminates the need for creating and maintaining identical hurdles for multiple plans. In addition, you can personalize plan hurdles at the participant level.

This section explains how to create a stand-alone hurdle. For more information, see Associating a Hurdle with a Plan and Personalizing a Compensation Plan Hurdle Definition.

About Hurdles

Some objectives are so important that companies do not pay any compensation unless the objectives are met. A salesperson must meet these objectives, called hurdles, before receiving any compensation. For example, a hurdle might be that a sales representative must meet at least 25% of quota before the representative is paid a bonus. As with other rules, hurdles allow you to associate performance on one measure with performance on another. This is also possible using the rate table.

In another example, you might want to delay compensation on a % Quota rule until the sales representative sells at least 10 units of another product.

To create a hurdle

  1. From the application-level menu, choose View > Site Map > Incentive Compensation Administration > Hurdles.
  2. In the Hurdles list, click New.
  3. In the new record, enter a name for the hurdle, select a hurdle type, and complete the fields in the form.

    4. The following table describes the fields. The available options depend on the hurdle selected.

    Field
    Comments
    Aggregate
    Indicates whether orders should be aggregated or not aggregated over the period. If the hurdle is an aggregate, then the calculation engine aggregates the orders for the time period and pays compensation based on the sum of those transactions or transaction lines. An example of this is a bonus for the total amount of revenue the representative closes for the month. If the hurdle is not aggregated, then the calculation engine pays compensation for each order—for example, a 3% commission on each deal that is closed this month. Hurdles of type = Commission are always nonaggregate.
    Comments
    (Optional) A text field for comments.
    Cumulative Measure Period Type
    (Optional) The period of time during which data accumulates for the hurdle calculation: Day, Bi-Weekly, Week, Month, Quarter, Half-Year, or Year.
    Earned
    The status of the transaction (order) for which the performance measure is being measured. In the Earned field, click the select button, and in the Rule Earned dialog box add a new record.
    In the new record, click the select button, and in the Rule Earned dialog box, click New. In the form, select the Earned value (Billed, Booked, Installed, or Paid), enter the Percentage (the default is 100%), select the Prorate check box if the status is PAID or leave the check box clear, and select the Distribution (All, Current Sales Team, or Original Sales Team). Save the record.
    You cannot select the Prorate check box for any status other than Paid.
    Filters
    (Optional) One or more filters that can be applied to your rule. Click the select button in the Filters field to add a filter.
    Measure Period Type
    Type of measure period: Day, Week, Bi-Weekly, Month, Quarter, Half-Year, or Year.
    Name
    The name of the hurdle.
    One Time Flag
    If the check box is selected, this is a one-time hurdle.
    Participant Level
    Indicates whether data measured for the hurdle is for an individual or a group.
    Performance Measure
    A list of performance measures. Examples are % Discount, % Margin, % Quota, Commission Credit Revenue, and so on. The available performance measures depend upon the hurdle type.
    Transaction Level
    Select Transaction or Transaction Detail to indicate whether the performance measure for the hurdle is tracked in the Calculation Workbook at the transaction level or at the transaction line item level.
    Type
    The rule type for the hurdle. Rule types include Bonus-Other Results, Bonus-Sales Results, and Commission. You must also select a performance measure.

Creating a Hurdle Definition

After you have created the hurdle, you can add a hurdle definition.

To create a hurdle definition

  1. From the application-level menu, choose View > Site Map > Incentive Compensation Administration > Hurdles.
  2. In the Hurdles list, select the hurdle record, and then drill down on the hyperlink in the Name field.
  3. In the Hurdle Definition list, click New.
  4. In the new record, complete the fields.

    5. The following table describes the fields.

    Field
    Comments
    Comparison
    Select the Hurdle comparison function. Options are: <, <=, <>, =, or >.
    Performance Measure
    Units, %Discount, %Margin, %Quota, Commission Credit Revenue, Cumulative, and so on.
    Period
    Period (for example, 2003) for the hurdle definition. In the Period field, click the select button and choose a period. If you leave this field blank, the hurdle definition applies to each period during the plan rule effective period.
    Value
    Enter a value or click the calculator button and use the numeric keypad.


 Siebel Incentive Compensation Administration Guide 
 Published: 18 April 2003