Developing a compensation management system

Managing the compensation for employees can be a business owners' nightmare. The larger the company, the more likely it is that problems in the compensation management system will occur, although even small businesses can find the entire process hard. The most common reason for problems in handling compensation, including fees, commission and overtime, is that the company has outgrown their original process, and the practices set up at the start are no longer able to handle the amount of demand on the management system. This can result in a number of negative consequences, including employee dissatisfaction, incorrect tax payments, and even external investigation.

Employee dissatisfaction is by far the most common effect of a poorly managed compensation system. Holding on to good workers is hard when there is a climate of suspicion and fear when it comes to receiving due wages. The best solution for businesses is to develop a compensation management system which covers all types of payments. These comprehensive systems involve changing the way that the company works, and may even require adjustment in the roles of managers and supervisors. Comprehension management system planning needs to begin as soon as the company realize that they have a problem, and should involve looking at all areas of the compensation process, from employee records to final payment.

The most common way of smoothing the compensation management system is through the use of specialist software. This software is used by managers and by the finance department to manage and calculate commission, incentives and other payments to employees. The software should also have elements such as the ability for employees to report compensation on a regular basis, automated compensation payments if this is relevant, and the ability to link with other parts of the computer system, such as HR or Sales.

Before installing compensation management system software, it is a good idea to employ work consultants to review the entire compensation process, and highlight any flaws. If there are problems with the flow of payments through the Sales department, or the manager is not able to handle payment workloads, then this needs to be highlighted and addressed before the software is implemented. The company will often find that the consultant can help them to sort out the entire work process, making it much easier for them to process payments even without the use of a computer.

Streamlining compensation management systems can benefit the entire company. Employees are likely to feel more motivated to earn commission or other forms of reward when they know that payments will be accurate and in good time. Therefore, any assessment of the compensation management system will be a good investment for any business struggling to manage their current payments. 

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The Importance of an Insurance Compensation Management System

Although insurance companies have been around for centuries, it’s odd to note that insurance compensation management systems have only been used now to attract clients and enhance the sales process. Since insurance offers pre-need plans to their clients, the most important aspect of their marketing campaign should be to project compensation and earnings from money invested.

Paper, pen and calculator used to be an insurance agent’s tool for determining the projected compensation any life insurance plan would earn in the next few years or until maturity. Clients who weren’t meticulous usually just agreed to whatever the first insurance proposal would show them. Other clients who wanted full control over their money, on the other hand, took long to sell and even had to meet multiple times until the client was satisfied with the earnings projection.

Some enterprising companies have begun to use insurance compensation management systems to help their clients and agents arrive at insurance plans without hassle and with shorter turnaround.

If you’re an insurance plan provider, why should you invest in an insurance compensation management system? Here’s why:

1.    Adds credibility to the insurance firm. There are a lot of factors that can contribute to the credibility of an insurance firm. But it can be argued that its credibility is the most important tool that an agent can use to convince clients to buy plans. When potential buyers see that you have invested in software that can help them make better financial decisions on the spot, they’ll certainly be impressed.

2.    Gives both clients and agents tools to monitor their earnings and plans. For both the agent and the client, insurance compensation management software allows them to look at policies, payments, dividends, earnings and other values at any time and from a plethora of devices. This gives people transparency and can even convince them to put more money into their plans just so they can see their finances earn more while in your care.

3.    Speeds up the transaction. By letting clients and agents make proposals with solid amounts before their eyes with just a few clicks, you give them a lot more time. This lets agents meet more potential buyers and this saves the client time and gives a lot of convenience. The speediness of the transaction and the proposal writing also helps seal the deal. You cannot begin to know much the user experience of a client has an impact on the closing of a sale.

4.    Eliminates errors and discrepancies. Human error is common when computing insurance fees using pen and paper. What’s more, the fact that error could be there slows down the process. When you automate your proposal writing through insurance compensation management software, you make sure that the amounts your clients see is the true amount that they can get, given the projected earnings of your funds.

5.    Easy to introduce and manage products that you sell. Insurance firms have different kinds of plans and policies. When you use insurance compensation management software, you can easily add, modify or remove products from your list and have all your agents aware of the change.

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Sales effectiveness tools to determine the firm’s turnover

Sales firms are required to measure sales performance and sales effectiveness to determine the firm’s turnover. There are several specialized tools which enables measurement of sales effectiveness. Sales effectiveness tools are used to measure the effectiveness of sales in terms of metrics such a as average sales price, close rates and sales cycle length. In the present competition, it is important for the firm to keep themselves updated with the latest sales tool of stay ahead of the race. The present tech savy customers and buyers go through a series of online research before contacting any sales person. 

The sales sector needs to examine the effectiveness of sales tools and explore various options to decrease the average sales price, sales cycle and determine the higher bottleneck rates. The sales team needs to get a deep insight into the buyer’s behavior, the sales tools need to work effectively and the sales team is to be properly trained to increase their performance level and pave way for generating more revenue. It is a pre-requisite that the sales team possess entre knowledge and information of the latest sales tool to have an edge over its competitors.

Importance of sales effective tools

It is important to make use of the software tools as the buyers are already well informed through internet research. The knowledge of software tolls helps to combat competitors. Sales tools are important as they help to boost sales in several ways

• ·         It increases the sales productivity
• ·         It helps to increase sales performance
• ·         It enables to quote competitive pricing with effectiveness
• ·         Helps in business development and collaboration
• ·         Creates sales vale for prospective customers
• ·         Helps to follow customers based on the customers requirement
• ·         Help deliver the perfect presentation for sales

Sales effectiveness tools are available in various shapes and sizes. Several firms display competitive intelligence to increase sales effectiveness. Sales tools enable to increase business prospects. Slaes tools enable to build a closer professional relationship with customers and employees. It enables to instantly update contents. A professional, polished and engaging presentation is created using sales tools to motivate sales staff. Sales process is improved with quick e-mail follow ups. The tools also enable worldwide distribution supporting multiple languages and user groups. 

Sales effectiveness tools require less deployment cost and zero revision fees. The tools enable to build brands through its various functionalities and which can be tailored quickly to meet various business needs. The tools enable to maintain strong customer relationship. The tool provides monitoring of real time sales and enables real time analysis. 

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How to Use Sales Performance Software?

Many people and businesses fumble through the process of establishing a sales performance management plan without serious consideration as to how to seriously analyze the effectiveness of their program.  Even those who have what they believe to be a successful program can always use objective analysis as to where the program can become more efficient.  The use of sales performance management software can help you develop and appropriate plan, implement it and evaluate it throughout implementation and use.  Here’s a bit more about what sales performance management can do for your team.

First, it’s important to note that sales performance software is not just for HR managers.  While compensation management is certainly an aspect of the HR duties, it is also a significant responsibility of sales operations managers.  Understanding the compensation program and sales performance, your employees and what motivates them individually and as a team are critical elements that can’t always fall on the shoulders of your HR staff.

The main benefit of sales performance software is that it allows a manager to effectively manage multiple plans or types of incentives packages based on several personalized factors.  Any sales manager at any given time can have staff in a wide range of experience, training and effectiveness in their current position.  The “one size fits all” mentality no longer applies and tailoring training as well as compensation is a necessity in today’s workforce.  Having software to track the team as a whole, but still give you the ability to drill down to the individual level is not just a huge time saver, but can be a significant money saver as well.

Sales performance software also allows finance staff to analyze the cost of a compensation program and evaluate the effectiveness based on cost/ benefit analysis and other metrics.  So many managers today don’t fully understand what their compensation program truly costs and if an increase in sales is seen, if the increase can cover the company’s cost of the compensation program.  Software puts this information at your fingertips in real time and allows you to adjust on the fly as you see fit.

Finally, sales performance software helps you track difficult to quantify data related to sales such as retention, customer satisfaction, and more.  Tracking software gives you the ability to offer incentives based on these important metrics or to at least tie these factors in to sales metrics that are more applicable to your company or industry.

Knowledge is power and compensation management software gives you real time knowledge you can use to make decisions for your sales force.  Use the data provided by sales performance software to make dynamic decisions on the fly, boosting sales, productivity and profits.

Read more about sales performance software: http://www.incentives-solutions.com/solutions-2/sales-performance/ 

Sales Performance Management Products Info

Incentives Solutions Sales Performance Management Products: | Create infographics

This Infographic shows two of the products offered by Incentives Solutions. The products designed to upgrade every business'  sales performance management and reduce costs. More products listed here: http://www.incentives-solutions.com/solutions-2/sales-performance/

Building an Effective Incentive Plan

Nowadays, companies definitely understand that a big part of their employees’ remuneration should be based on performance. Given such, building an incentive plan should consider the fact that everything should be performance based. The construction of any rewards program within a company should carefully consider that highest quality employees are retained, engage employees in the organization’s overall success and reward them according to how they have performed. 

All of these can be considered as objectives that should be looked into in drafting incentive compensation plans examples. These pay plans should assist to inspire workers by encouraging them to enhance performance and at the same time understanding the value of rewards, thus resulting to the increase of their chance to stay within the company.

To know more about incentive compensation plans examples, read more below. It is good to note that in designing incentive pay plans, aligning the company’s goal is given great significance, so that not only do employees get the most out of it, but they also realize the value they put towards the company’s overall success.

Incentive Compensation Plans Examples: What you need to know

• Production Pay

Paying workers by the no. of hours is not usually the best option given to any company. Sometimes there may be instances wherein there are no pending tasks to be done, however if paying employees using piece rate basis is more aligned to the goal of getting them to perform more and do better. This can also be modified to become a bonus opportunity especially by adding a little bit to the hourly rate just to ensure that the quality is not compromised.

• Commissions

Another incentive compensation plans example is commissions. Most industries use such to earn a percentage of every sale especially for those working under the sales industry including real estate, car selling etc. There may be variations in the details of commissions depending on a number of factors and the division of percentage points. Definitely, if you are working on such kind of incentive pay plan, it is good to look into a straight commission basis receiving pay from sales or having a fixed salary plus a percentage for every sale. 

 

• Merit Incentive Plans

This type of incentive pay plan is usually in connection with the performance review of an employee a year. For instance supervisors may gauge their employees’ performance and give them ratings. In a scale of 1-5, given that 5 is the best score, those employees who consistently get such rating can get an additional bonus or even a raise.Finally, in drafting any incentive compensation plans it is highly recommended that it should be put in writing to avoid ambiguous terms that could be subject to dispute at a later date. The plans should also provide the company with broad flexibility.

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