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Business Scenario for Compensation Tracking

This scenario provides an example of a process flow performed by the compensation administrator, sales manager, and sales representative. Your company may follow a different process flow according to its business requirements.

Catherine Andrews, the compensation administrator for Network Ltd., is responsible for tracking compensation to make sure that employee accounts are accurate, quotas and awards are correctly applied, and balances reflect payments due.

First, Andrews checks the total compensation for each employee to make sure it is accurate. She reviews the Calculation Workbook to verify that the compensation amount was calculated using the correct rules and rates, checks the calculation summary to make sure the employee is listed correctly for each compensable position, and checks the cap details, draw details, and hurdles details to verify that each of these components has been applied correctly. She reviews the employee calculations to verify that credit for each transaction is being allocated properly and that non transaction awards are included. Then she looks at the achievement containers to determine that employee achievements are being correctly aggregated.

Next, Andrews releases the latest calculation run so that employees can also review the most recent account information for themselves and their direct reports.

The executive management at Network Ltd. is looking closely at how much was paid in commissions for the year as well as the quota achievement, so Andrews reviews the plan rule earnings and quota achievement to gather that information. She then runs a report, providing management with the information.

Finally, Andrews reviews the total performance to track employee performance against aggregated rules and hurdles, and to determine how much revenue was accumulated by each employee.

Meanwhile, the sales manager also reviews the total compensation and the compensation for each release period for each of the manager's direct reports. The manager looks at the employee's plans and performance against quota targets to see if any adjustments to the set quotas need to be made. One of the sales representatives has been reviewing his total compensation and performance against quota targets, and he contacts the sales manager to discuss the possibility of revising the quota, as his territory is experiencing an economic slowdown.

Siebel Incentive Compensation Administration Guide