Modeling and planning incentive compensation is challenging even for top sales leaders. With Anaplan’s Incentive Compensation App, you can model different incentive compensation plan designs and assess the impact on the business before rolling the map to the sales team.
For example, the opex plan is a ramped commission plan with a built-in threshold and no cap on total compensation earnings. The sales rep must attain at least 20 percent of their quota target to earn commission, and from there, commission percentage rates can vary. This is dependent on a bracketed quota attainment strategy. You can set up complex incentive compensation plans to include thresholds, accelerators, decelerators, and caps based on measurements such as revenue, margin, or quota attainment. You can even set up spiffs or contests to drive better sales performance. Assign sales reps to various incentive compensation plans based on sales behaviors or motivators you wish to drive. You can update or change compensation plans at any time based on sales performance.
The history of the sales rep’s incentive compensation and sales performance is maintained for audit and compliance tracking. Incentive compensation plans can be set up at the sales management level and can include commission or bonuses.
For example, if the team quota attainment is aggregated to a 95 percent attainment level, the sales manager receives a $10,000 bonus payout for the period. Set up recoverable and non-recoverable draws to allow sales to take a draw against their incentive compensation earnings at the beginning of a period.
Sales reps have complete visibility into performance such as annual salary, year-to-date bookings, and final variable pay. Compare year-to-date bookings against the annual quota remaining or quarterly bookings against the quarterly quota. Your final variable pay and quota attainment are all displayed on your dashboard, and for curious or ambitious sales reps, you can pull up “what-if” scenarios. You can always access a more detailed incentive compensation statement that provides a complete view for the period.
To get more analytics at an account level, simply select “View Account Details.” As a sales manager, you can access your entire sales team’s sales performance and incentive compensation—even view the same information accessible to a sales rep via their dashboard.
Even your sales VP has access to a multitude of sales performance metrics across the organization. Easily change quota attainment tiers or commission rates by creating “what-if” scenarios to model the impact of changes against current incentive compensation plans or make a change to a sales rep’s quota to analyze the impact of this change.
Even more powerful, you can integrate Anaplan Incentive Compensation with Anaplan Territory and Quota. With balanced sales territories and quotas, you can achieve a more normal quota distribution curve. With Anaplan’s Incentive Compensation App, you can plan and model different incentive compensation plan designs and assess the impact on the business before rolling it out to your sales team. To learn more about Anaplan’s Incentive Compensation App, request a personalized demo.