Hi to all, Please guide me on the Incentive plans to be design in an organization.
Is there any formula to define incentive amounts for sales people working at a different level?
I know that incentives should be based upon the revenues generated by salespeople or the target given to them in terms of revenue.
Please make aware of your views on it.
Thanks & Regards,
Vandana Sharma
From India, New Delhi
3Is there any formula to define incentive amounts for sales people working at a different level?
I know that incentives should be based upon the revenues generated by salespeople or the target given to them in terms of revenue.
Please make aware of your views on it.
Thanks & Regards,
Vandana Sharma
From India, New Delhi
Dear Vandana
Greetings.
You have raised a good question on incentive plans. For a successful incentive plan the following points may be taken care of before implementing.
1. There must be a guranteed minimum amount for a reasonable sales.
2. The plan must be rational, and easily achieved by a person with a moderate work.
3. As the success of every incentive plan based on participation and motivation of the earners, it must be well structured with the required guidelines.
Cheers
Trisha
HR Professional
From India, New Delhi
Greetings.
You have raised a good question on incentive plans. For a successful incentive plan the following points may be taken care of before implementing.
1. There must be a guranteed minimum amount for a reasonable sales.
2. The plan must be rational, and easily achieved by a person with a moderate work.
3. As the success of every incentive plan based on participation and motivation of the earners, it must be well structured with the required guidelines.
Cheers
Trisha
HR Professional
From India, New Delhi
Hi
I am waiting for your guidance.
I want to add one more question with this.
Are incentives part of salary or CTC? I spoke to one c.a. He told me that incentives must be included in salary structure. and ctc comes only after adding incentives ( if we have defined for any person.)
Please guide me on this issue. How you people handle this incentive parts.
Thanks & Regards,
From India, New Delhi
I am waiting for your guidance.
I want to add one more question with this.
Are incentives part of salary or CTC? I spoke to one c.a. He told me that incentives must be included in salary structure. and ctc comes only after adding incentives ( if we have defined for any person.)
Please guide me on this issue. How you people handle this incentive parts.
Thanks & Regards,
From India, New Delhi
Dear Vandana
Greetings.
Incentive shall not be included in CTC as how you calculate a constant incentive amount. Incentive is based on work performance, completion of task,achievement of standard of production.
Hence it is not correct to include in CTC.
Cheers
Trisha
HR Professional
From India, New Delhi
Greetings.
Incentive shall not be included in CTC as how you calculate a constant incentive amount. Incentive is based on work performance, completion of task,achievement of standard of production.
Hence it is not correct to include in CTC.
Cheers
Trisha
HR Professional
From India, New Delhi
Hi All!
With reference to the discussion .. if Incentives are not included as part of CTC ..then what exactly is " Performance Pay" or "Flexi Pay or Variable Pay" which are a part of CTC in most of the organisation.
Secondly, how do one calculate this "Performance Pay" before hand...what are the parameters of calculating "Performance Pay" and how to earmark the performance standards for calculating avriable pay..
Seniors if u can throw some line..wud be of much help..
Rgds
Suchandra
From India, Calcutta
With reference to the discussion .. if Incentives are not included as part of CTC ..then what exactly is " Performance Pay" or "Flexi Pay or Variable Pay" which are a part of CTC in most of the organisation.
Secondly, how do one calculate this "Performance Pay" before hand...what are the parameters of calculating "Performance Pay" and how to earmark the performance standards for calculating avriable pay..
Seniors if u can throw some line..wud be of much help..
Rgds
Suchandra
From India, Calcutta
Dear Vandana,
can i give one idea, if possible to create a new policy in your company.
i you should fix the target and fix the incentive also.
ii. Discuss with your mgmt and fix the incentive depending upon the departments
iii. if it is useful to business growth, can you suggest to your mgmt.
regards,
D.Thirumurugan
From India, Madras
can i give one idea, if possible to create a new policy in your company.
i you should fix the target and fix the incentive also.
ii. Discuss with your mgmt and fix the incentive depending upon the departments
iii. if it is useful to business growth, can you suggest to your mgmt.
regards,
D.Thirumurugan
From India, Madras
Thanks Trisha
but how one can fix up the target.
According me there should be some minimum amount to be generate by a sales person which is also depend upon his gross salary. beyond that amount company can calculate the incentive. Target is also indirectly related to gross salary of a person?
Is this the right apporach?
From India, New Delhi
but how one can fix up the target.
According me there should be some minimum amount to be generate by a sales person which is also depend upon his gross salary. beyond that amount company can calculate the incentive. Target is also indirectly related to gross salary of a person?
Is this the right apporach?
From India, New Delhi
Dear Vandana
Greetings.
For getting salary itself all sales people to perform some agreed targets. Otherwise, he may be regarded as poor performer and either he will be removed or corrected to perform the target sales. But to get a incentive amount, he has to put more effort, but reachable targets we have to fix for his performance.
Cheers
Trisha
HR Professional
From India, New Delhi
Greetings.
For getting salary itself all sales people to perform some agreed targets. Otherwise, he may be regarded as poor performer and either he will be removed or corrected to perform the target sales. But to get a incentive amount, he has to put more effort, but reachable targets we have to fix for his performance.
Cheers
Trisha
HR Professional
From India, New Delhi
hi
take BEP (Break Even Point) as one of ur parameters to pay the incentive for admn and other depts
for sales team it should be based on the targets they achieve
say x nos- y nos = a% or Rs Q per each no and so on
b4 that let me know what type of organisation is urs?
regards jyothsna
From India, Visakhapatnam
take BEP (Break Even Point) as one of ur parameters to pay the incentive for admn and other depts
for sales team it should be based on the targets they achieve
say x nos- y nos = a% or Rs Q per each no and so on
b4 that let me know what type of organisation is urs?
regards jyothsna
From India, Visakhapatnam
Hello All,
I am preparing sales incentive plan. Let me share the details with you:
· It’s a start up company in India in IT infrastructure management (IT managed services). We have to hire a sales person and have to pay him incentive above his salary.
· Sales cycle is long about 3-5 months
· Services sold can generate repeat revenue (monthly) or one time revenue
· Objective is to penetrate the market
It would be great if you could provide me following information:
· Things that must be covered in incentive plan/policy
· Percentage of incentive given to sales person in this industry on different target considering that incentive is paid on revenue and not profits
· Should the incentive percentage be different for repeat business and new business
Thanks & Regards,
Prachi
From India, New Delhi
I am preparing sales incentive plan. Let me share the details with you:
· It’s a start up company in India in IT infrastructure management (IT managed services). We have to hire a sales person and have to pay him incentive above his salary.
· Sales cycle is long about 3-5 months
· Services sold can generate repeat revenue (monthly) or one time revenue
· Objective is to penetrate the market
It would be great if you could provide me following information:
· Things that must be covered in incentive plan/policy
· Percentage of incentive given to sales person in this industry on different target considering that incentive is paid on revenue and not profits
· Should the incentive percentage be different for repeat business and new business
Thanks & Regards,
Prachi
From India, New Delhi
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