There’s no cookie cutter form for compensation plans—especially for companies with a wide range of services provided. Compensation plans can be the driving force of a business or its downfall.
A Step by Step GuidePlanning an efficient implementation separate good compensation plans from great compensation plans.
1. Determine the main plan objectives
An effective compensation plan outlines clear goals while keeping a couple of things in mind. Compensation plans must take into account new product launches and the atmosphere of the industry. What sort of motivation do your employees need? Are you looking to recruit new team members or simply retain who you have?
2. Identify controllable, measurable job elements
Employees need to know exactly what is expected of them to know how they can go above and beyond. Just as your business as a whole needs to have clear objectives, so too does each position.
3. Determine method of compensation
All compensation plans should work toward employee motivation and reward for pre-determined successes. Is your compensation plan based off a specific quota filled by employees or a certain amount of revenue earned?
4. Test and establish administrative process
Once designed, implementation becomes the most important factor of a compensation plan. What systems will be in place to hold employees accountable? How will administrative processes guide and test the system?
5. Perform compensation analytics.
Once established, a compensation will probably need to be re-adjusted and salary ranges moved around. How does it work with your company? Are employees meeting desired goals and quotas?
6. Stay consistent and perform regular updates
An effective compensation plan doesn’t just sit still. It is constantly being developed and modified to fit the needs of the company.
There are many tools and software solutions that will help you perform and manage your compensation plan. Definity First offers you Blitz, the incredible software which will motivate your sales team by designing and implementing the right compensation plans. We will be happy to know your business needs in order to adapt Blitz to your company. For more info, contact us! [email protected]