Incentive Plan Audit
This is a quick service for clients who need an expert to let them know, simply on the basis of reading their plan documents, if the plan follows best practice, has major flaws, or can be improved. The audit covers such areas as:
This is a quick service for clients who need an expert to let them know, simply on the basis of reading their plan documents, if the plan follows best practice, has major flaws, or can be improved. The audit covers such areas as:
|
§ Is the salary incentive mix appropriate for each type of sales role?
§ Are the performance measures clear, objective, and aligned with job responsibilities and sales strategy? § Are there too many or too few performance measures? § Is the incentive form (e.g., commission or bonus) appropriate, given the role, the lumpiness of the data, the length of the sales cycle, etc.? § Are the detailed incentive mechanics designed to deliver a motivational degree of payout dispersion while managing overpayment risk? § Are the mechanics simple and rational? § Are the rules around timing of sales credit and timing of measurement and payment optimal? § Is the overall design of the plan in line with those of companies in the same industry or situation? § Are the terms and conditions governing the plan in line with common practice? § Does the plan document fulfill its roles as:
|
After reviewing the plan, we prepare a brief report identifying the strengths of the plan and opportunities for improvement in the short and longer term. In presenting the report we explain the rationale for our opinions.
