Incentive Plans
An incentive compensation plan defines how to measure a participant's progress and calculate compensation earnings.
Compensating salespeople correctly to motivate them and support your business objectives can be complex. But you can design incentive plans that apply to groups of people. For example, design a plan for new salespeople and another for sales managers.
You model a plan by assembling pieces:
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Performance measures and credit categories to determine the attainment toward goals
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Expressions and rate tables to accurately compute earnings for each level of attainment
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Plan components by combining performance measures, expressions, and rate tables
In this figure, you combine performance measures, expressions, and rate tables to form plan components. Then assemble the plan components to support the incentive requirements of participant types and roles.
Per this flow chart, plan administrators configure incentive plans after planning the compensation strategy and then managers assign the plans to participants.
