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Creating a Multiplier
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.
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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Siebel Incentive Compensation Administration Guide Published: 18 April 2003 |