Infographic; Processes And Policies For The Incentives Scheme Administration

Designing a Sales Incentives Scheme doesn’t stop when just the terms and conditions are ready; when for example the total target cash compensation, the mix, the leverage, the mechanics are decided.

Companies tend to forget other important aspects of the program as for example how the approval process shall work or when exception policy is used.

Look at the below inforgraphic that shows all processes and policies that accompany an incentives plan.

Infographic; The Incentive System’s ESSENTIAL Supplements

Designing a sales compensation scheme is not only to decide on the total target cash compensation, how much one shall pay on fix salary and how much in the variable part, whether there is a cap, a hurdle, a linkage, etc.

There are 3 additional parts that are very well linked to the scheme and part of the design.

The infographic below gives the main guidelines on the matter.