It was once a revolutionary idea that Sales Incentive Compensation and HR compensation could and should be managed together on the same platform. With compensation silos traditionally in place, how easy would it be to break these down and implement a unified solution? Could every company adopt a comprehensive approach to planning, administration, and analysis of all compensation and rewards?
We think so.
Sales Incentive Compensation and HR Compensation
We are fortunate to be trusted by some of the world’s largest companies. Through the access they provide us, we’ve gained valuable insight on how they are successfully managing sales incentive compensation alongside salary, bonus, and executive compensation. The reasons why each company has adopted a unified approach are highly personal, but the benefits appear present across all organizations.
Automotive Company Looking for a Compensation Solution
A large, diversified automotive company in the US looked to find a single compensation solution that could handle both base compensation and complex commissioning for their employees and dealers. They already had a sales compensation tool and in-house compensation solution but were frustrated by the costs to maintain, as they required ongoing customization and spending to keep up with the changes.
They looked at reducing risk, obtaining greater compliance through the enhanced security and transparency of the system—whilst relying less on the few in-house IT staff who knew the current system. The self-sufficiency that the beqom solution afforded led not only to operational efficiency but improved visibility with more accurate accruals and forecasts.
From a strategic standpoint, the unified platform gave them the ultimate ability to align total compensation to business goals, link pay to performance, as well as have a comprehensive view of compensation data to enable better decision making.
Telecom Provider Looking to Move Sales Plans, Salary and Bonus Processes Onto the Same Platform
A leading telecom provider moved their sales plans onto the same platform used to manage salary and bonus. The 21,000 employees had already benefitted from the beqom solution for their salary reviews and bonus management, and the company realized the return on investment possible by replacing multiple existing systems. After the initial success of rolling out the sales plans across the Corporate Business Unit, they followed up in automating all sales plans across the board.
The automation of compensation management increased the efficiency of all the processes, with the company enjoying the benefits of being able to manage compensation “their way.” They now handle real-time calculations, detailed simulations, and forecasts on the platform, with integrated reporting and analysis on all compensation data. In an industry where the market moves fast, the speed of change that is possible on the beqom platform proves indispensable.
Digital Media Company Starting a Salesforce Transformation
A large digital media company began a salesforce transformation as its business model transitioned from paper to digital. They had three clear goals:
- Cost control, owing to automation and full visibility
- Flexibility, to allow plans to include many objectives, rules, and KPIs, and support complex compensation mechanisms such as a carry-forward process
- Adaptability, thanks to quick and easy modification of plans on the fly
This digital transformation has seen some positive side effects; improved sales motivation through better communication, transparency, and the representative’s simulation capability. It has led to reduced frustration and turnover, resulting in deeper engagement of the managers. Sales representatives also like the integration with Salesforce.com.
ERP Software Vendor Automating Its Global Compensation Processes
An Enterprise Resource Planning software vendor was moving from a decentralized to a centralized organization and wanted to automate their global compensation processes—Salary, Short Term Incentives, and Sales Commissions—on a single platform.
While they required a robust calculation engine, what set beqom apart was how it managed all the related processes, including simulation, letter management, and communication. Now for the first time, they can digitally communicate targets and harmonize compensation plans worldwide. This project was seen as transformational, with buy-in all the way to the offices of CFO and CEO.
The benefits experienced by these companies are echoed across our entire customer base. Time and time again we’ve seen that implementing a unified solution is not only possible but is in fact, the most efficient way of managing compensation. By combining Sales Incentive Compensation and HR Compensation, businesses are not only future-proofing their platform but are also achieving increases in operational efficiency across the organization.