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Providing a system for employee incentives for motivating them

Sales Incentive Compensation Management For A Retail Giant

Tracking employee performances and incentivizing the achievers


The client had a sales incentive process in place for motivating its sales personnel through performance-based incentive compensation plans. The entire sales team was a part of this incentive compensation plan.

However, the sales team was facing lack of clarity related to sometimes irrelevant and complex compensation plans. Further, the calculation of incentive was done manually, based on the performance metrics reported by the team managers via emails. The finance department, understandably, faced difficulties in examining and auditing the performance KPI’s that formed the basis for the determining incentives. Furthermore, the sales team did not have any access to their performance or commission calculations.

Sales Incentive Compensation Management

A highly motivated sales team is essential for improving the sales performance and maximize revenue for any business. This becomes achievable by having a robust and transparent sales incentive process supported by a Sales Incentive compensation management system, which is linked to the sales CRM

Some of the challenges that the organization faced are –

  • The sales compensation process adds administrative load on the sales managers, which takes away their attention and valuable time from the things that mater
  • Lack of transparency between performance and sales and its impact on the incentive to the sales personnel
  • Limited forecasting capability based on projected earnings/payouts and modeling hypothetical changes to the compensation plan
  • A large administrative overhead to fine-tune the existing sales incentive programs or develop new ones
  • Integration of the sales incentive compensation system with the company’s CRM and payroll systems with the requisite approval process

To start with, OrangeMantra conducted a discovery workshop with the client’s team, in addition to focus group meetings with the stakeholder team members. The first step was to align all with the business objectives and requirements. OrangeMantra also looked at the current Sales CRM, and incentive process, including the manual and approval steps performed by the client team members, and assessed the payroll processing system as well. The next step was to develop and configure the Salesforce solution, including the interface development for the client.


A custom and robust Sales incentive management system should with the following features:

  • Creation of easy sales incentive compensation plans
  • Complex crediting to attribute credit for sales to multiple tiers of the sales team
  • Internal workflow and tracking elements to create an audit trail
  • Analytics tools to view the sales performance, earnings and projected payouts
  • Flexible incentives plans that can be aligned with the changes in sales performance & corporate goals
  • Real-time reports, both web and mobile, about sales performance and compensation
  • New compensation plans with maximum results were achieved by using the Incentives SPM Simulation Plan
  • Improving the motivation and engagement of the sales team, thanks to the transparency and the timely availability of performance and incentives information
  • Timely coaching of the employees due to the real-time availability of their performance metrics in the dashboards of the team managers
  • Full transparency of the compensation calculations between the finance team and the employees.
  • 35% increase in employee productivity
  • 25% increase in retention rates
  • Considerable time savings for sales managers
  • High loyalty and performance of the sales team