|Bookshelf Home | Contents | Index | PDF|
Multipliers allow you to create more complex compensation rules by multiplying the output of one rule by a percentage factor defined in the multiplier rule. For example, you might create a compensation plan with a rule that pays sales representatives 5% of each deal they close, and also ties compensation to a quota achievement. You might create a multiplier rule that contains a percentage factor based on the percentage of quota achieved.
If a sales representative closes deals worth $100,000 in revenue and earns a %Quota achievement of 80%, then the calculation engine multiplies the $100,000 (output of the first rule) by 90% (factor defined in the multiplier rule), resulting in a compensation total of $4,500.
In this case, Plan A has a rate table different than the rate table for Plan B, and each plan uses different performance measures. One rule references the other as a multiplier rule. It has a different rate table with difference commission rates for each tier. In the multiplier rule, instead of a commission rate, the rule has some multipliers. Compensation on the normal rule is a combination of the payout of that commission multiplied by the multiplier. Table 19 illustrates this scenario.
In another example, you want to pay sales representatives a percentage based on the quarterly customer satisfaction percentage value. You set up a plan with one plan rule for revenue, and another plan rule for %Quota. The output of the revenue plan rule is multiplied by the percentage defined in the customer satisfaction plan rule. Each plan rule has different attributes.
The %Quota plan rule contains multiplying factors in the rate table. The calculation engine multiplies the output of the revenue plan rule by one of these multipliers based on a %Quota achievement. For example, if a sales representative closes deals worth $230,000 for the month, and the sales representative's %Quota Achievement score is 85, the calculation engine performs the following calculation:
|Siebel Incentive Compensation Administration Guide|