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Incentive Compensation Services

Incentive Plan Communication

Effective communication of incentive plans to your sales team is crucial for its success. Our incentive plan communication service ensures your team fully understands the plan, how it works, and how their performance directly impacts their incentives.

Our incentive plan communication offering consists of the following key components:

01.

Developing a communication plan.

A compensation communication plan specifies the communication objectives, the key messages for each audience, a series of cascading communication events (which can be abbreviated or extensive), the media for delivery of the messages (i.e., voicemail, webinar, teleconference, stand-up presentation, workshop, one-on-ones), and the timing and accountability for implementing the communication plan.

02.

Plan documents.

Every incentive plan needs a polished, clear, and concise plan document that is specifically tailored for every organization. Sometimes, a brief 2-3 page document will suffice, but more detail is often helpful or required. We work with clients to develop clear and impactful plan documents that meet the needs of their organizations.

Most incentive plan communication documents should include:

a statement of the overall plan objectives, linking the plan to strategy and generating enthusiasm
a summary of plan measures and weights
detailed descriptions of performance measures and mechanics, clearly explaining how incentive pay is calculated
calculation examples
terms and conditions governing the plan (to be reviewed by Legal and generally included at the end of the document or as an addendum)
an individualized attachment detailing pay levels, quotas, and account assignments, as well as an acknowledgment form to be signed by the participant
03.

Communication presentations.

In addition to plan documents, communication presentations are a requirement for the effective rollout of new or changed incentive plans. These presentations are tailored to various events, such as:

A meeting with the head of sales and the sales managers to secure their understanding and buy-in, so they can explain and support the plan to their teams
A presentation to “launch” the plan at a meeting of the entire sales force
Smaller team meetings involving separate parts of the organization
Critical elements of a communication presentation include:
  • Why the plan is changing
  • How the plan new plan differs from the old plan
  • The process and people involved in developing the new plan
  • How the plan links to strategic objectives
  • Elements of the new plan—how it works
  • How to earn money under the new plan

Communication presentations are usually not as comprehensive as the plan documents, but parts may go into significant detail, particularly if there are changes that may be difficult to comprehend. We collaborate with clients to develop polished communication presentations that build trust and enthusiasm for the new plan.

04.

Incentive calculators.

Calculating incentives can be challenging when plan mechanics are complex. In such cases, incentive calculators can be indispensable. his is especially true for goal-based plans that calculate performance on a year-to-date basis.

An incentive calculator is an Excel or web-based tool used by salespeople to compute their earnings based on real or hypothetical sales performance scenarios. While not a sales compensation administration software, some clients find it a cost-effective tool for actual incentive computations, which can also be used to motivate salespeople.

Given our expertise in the standard incentive calculation formulas, we can develop these calculators more efficiently than can be done in-house.