Incentive management refers to the practice of providing incentives like extra time off, a gift, or pay to the staff, especially promoters who meet a certain benchmark or perform greate behaviors.
As the caculation of incentive involves various criteria, it is complicated for the management to provide the final statement of incentive.
The incentive management software could transform the way how businesses calculate the incentive for the employee. The SaaS providers have launched various commission management software. But which is the best incentive compensation management software? Figure it out in today’s article.
Incentive management software is a solution to help businesses save time and operating costs
You might wonder what are the benefits of incentive management?
The management of incentive will help the management grasp the situation of incentive and know the performance of employees. Accordingly, they could take proper actions to conduct various incentive programs to gain the following benefits:
Traditional incentive management utilizes pen and paper method to record the results of incentive for the employees. Some utilize Excel to calculate the incentive based on the management incentive plan. That said, these ways pose several difficulties for businesses.
Traditional incentive management requires businesses to hire a team of professional accounting staff. All data entry, calculation, and verification are conducted mostly manually. This method takes time and human resources while the efficiency is low. Forms and heterogeneity cause problems in management and execution.
Manual incentive management requires more personnel
It is easy to have errors when calculating commissions manually; not to mention, businesses also have to use a large volume of documents to store. This method wastes a lot of time and the efforts of human resources. Furthermore, the data is not guaranteed safe due to low security and the manual input easily leading to the mistakes.
3. Slow Processing Speed
Manually calculating commissions often involves storing large volumes of data. Traditional method could result in slow processing speed as all the calculation needs to be done by human.
Manual commissions often make it difficult to analyze and report data. It takes time to check, review data, and deal with errors. The data management process is complicated, making it difficult to find.
The manual commission makes it difficult to check and manage data
To overcome the disadvantages of the traditional method, businesses have applied commission management software to the operating process. Here are some of the benefits of commission management software for businesses.
With commission management software, you will no longer have to worry about statistics and calculations at the end of the month because all data is updated and available on the application.
The software's automatic commission management feature will help you make statistics and accurately calculate all data with just a few simple steps. All career requirements are designed programmatically on the application. Thereby optimizing commission calculation time to improve employee productivity.
Management by spreadsheets or paper inevitably has errors in the calculation process. That is the main cause of conflicts between employees and managers. At the same time, there were cases of jealousy, envy, and comparisons among employees due to the difference in commissions.
With incentive management software, that will not be the case because the application calculates exactly every detail based on the actual sales results of each employee and agent. The software helps you calculate 100% accurately; there is no difference, error, or commission difference with actual working efficiency.
A quality commission management software should have all the following features:
A commission percentage will be shared for service industries whenever an employee has a customer. The percentage varies depending on the order value and employee turnover. Depending on the skills and experience that employees can achieve different discounts %.
Commission management software will be based on the manager's actual data to accurately calculate the percentage of discount each employee is entitled to.
Currently, there are many ways to calculate commission for employees. But most businesses apply two methods of calculation: Calculate commission according to % of the order value and calculate commission according to the default amount of products and services.
Incentive management for employees
For the configuration of each employee, the software will calculate the commission according to the hierarchy. For example, the department head will receive a 15% commission on each product sold. Employee level is entitled to 10%.
Agent levels include Level 1 General Agent, Level 2 General Agent, and Downline Agent. The difference in commission discount for each level depends on the company's policy.
Managers can design commission rates directly on the application. At the same time, set up conditions for rank reduction/promotion when employees/agents achieve or do not achieve sales within the specified time.
Managers can design and divide the commission level employees/agents receive by each quota such as:
The total commission earned by the employee/agent is based on the revenue achieved in that month.
Set up an incentive scheme
When agents or employees achieve sales before the specified time, the business will have a hot bonus policy in cash or increase the commission percentage.
You can set up hot bonus conditions and increase commissions for employees/agents with commission management software. This encourages employees to work actively, increasing sales.
Commission management software supports managing employees and branches below on mobile phones.
The application can:
The commission discount will differ for sales staff in charge of different projects. For example, employee A is in charge of projects B and C.
Project B has a commission of 2%; the sales staff sells 3 billion. Project B has a 3% commission sales staff of 5 billion. So the total employee commission will be: 3 billion x 0.02 + 5 billion x 0.03 = 160 million dong.
Incentive management software with integrated financial reporting for businesses. Managers can set up a report form according to the characteristics of the business.
The software supports the management of revenue and expenditure, operating expenses, fixed costs, and incurred costs. It is possible to export detailed reports, including gross profit, net profit, or profit after tax.
Incentive management software that integrates financial reports for businesses
In addition to the timekeeping and commission features, the software also supports effective inventory management. The application manages detailed inventory status, imports - exports, and alerts when inventory is low.
The software allows employees and managers to update and exchange information quickly without being limited in time and space. All promotion information, job assignments, and problem-solving are quickly updated on mobile phones.
FieldCheck is a software that supports commission management with many preeminent features. Some of the salient features of the application include:
The software allows Admin to easily set the commission rate according to the products sold or the prescribed sales.
The system automatically calculates the commission right after the employee enters the revenue report on the application.
Managers do not need to use any functions when calculating employee commissions. The automated calculation process gives accurate results.
The software also provides Dashboard to create visual commission statistics for each employee according to specific sales.
That's all about the information about commission management software. By introducing this tech-backed solution, businesses could automate the caculation of incentive for the employees, saving much time and human resources. Accordingly, they could spend more time in researching and conducting other programs to attract the customers' attention.
FieldCheck was developed to help businesses easily calculate commissions for employees at stores or points of sale. You can set the standard of commission calculation on the tool so that the system can automatically calculate the commission for employees. The data will be updated in the system's Dashboard spreadsheet.