Siebel Incentive Compensation Administration Guide > Plan Design > Business Scenarios for Compensation Plan Design >
Sales Manager Group Compensation Scenario
Sales managers are often compensated based on the performance of the representatives they manage. For example, if sales manager Madison Stern manages Terry Smythe and Keith Beale, Stern might be compensated for the amount of business Smythe and Beale close in a particular period. To compensate Stern for the business other employees close, you create a compensation group.
Given this scenario, you perform the following steps:
- Create a group and name it Western Regional Manager Group.
- Add Stern, Smythe, and Beale to that group.
- Define a quota.
- Associate the quota with the plan.
- Set the quota target.
- Associate the quota with the rule.
- Create a compensation plan and name it Sales Manager Plan.
- Create a rule with a participant level of Group, and select your Western Regional Manager Group in the Group field. (This rule can be a commission, a bonus, or a percentage of the quota that the group must reach.)
- Add the people in your group (Stern, Smythe, and Beale). However, because this is the Sales Manager Plan, you want only Stern compensated for the group's performance, in the Plan Compensable field, remove the check mark for Smythe and Beale, but leave the check mark for Stern.
At the end of the period, the calculation engine looks at the deals closed by Stern, Smythe, and Beale, and sums the total for the group. The compensation calculated from the group total is paid out only to the manager, Stern.