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Siebel Incentive Compensation Administration Guide > Plan Design >

Creating a Multiplier

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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.

When you work with multipliers:

You can multiply plan rules from different plans
The plan rules can have different attributes.
The two plan rules must have the same measure period.

Multiplier Scenarios

The following scenarios show how multipliers can be used.

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.

Table 19.  % Quota, Multiplying Factor, and Resulting % of Deal Payout

%Quota	Multiplying Factor	Resulting % of Deal Payout
0-75%	80%	4%
75%-85%	90%	4.5%
85%-100%	100%	5%

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.

% Quota plan rule. Table 20 shows the attributes for this plan rule.

Table 20.  % Quota Plan Rule

Performance Measure	Low Value	High Value	Multiplier
% Quota	70	80	70%
% Quota	80	90	80%
% Quota	90	100	90%
% Quota	100		100%

Revenue Commission plan rule. Table 21 shows the attributes for this plan rule.

Table 21.  Revenue Commission Plan Rule

Performance Measure	Low Value	High Value	% Deal
Revenue	100,000	150,000	1%
Revenue	150,000	200,000	2%
Revenue	200,000	250,000	3%
Revenue	250,000		4%

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:

(230,000 × 3%) × 80%

The sales representative's total compensation is $5,520.

Selecting a Multiplier Plan Rule

Use the following procedure to specify the multiplier plan rule.

To select a multiplier plan rule for a plan rule

From the application-level menu, choose View > Site Map > Incentive Compensation Administration > Plans.
In the Plans list, select a plan, and then drill down on the hyperlink in the Name field.
Click the Plan Rules view tab, and choose a rule.
In the Plan Rule form, click the select button in the Multiplier Plan Rule field.
In the Pick Plan Rule dialog box, select a plan rule, and then click OK.

Plan rules with a matching measure period appear.

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