ICM and Employee Loyalty: HR Benefits and Incentives

Team Meeting in Conference Room
by BHG Staff


Blue Horizons Group is an end-to-end service provider and consultancy for your revenue operations strategies and systems.

One of the most interesting aspects of working with customers and business partners in the domain of Incentive Compensation Management (ICM) and Sales Performance Management (SPM) is identifying who actually owns this function within an organization. Often it is either Sales Operations or Finance, occasionally it is the IT organization. Oddly enough, given the ties this domain has to the topics of compensation, job roles, employee satisfaction, etc., it is rarely the Human Resources group who owns ICM or SPM functions.

Perhaps it is because the most immediate benefits of an ICM solution wouldn’t seem to lend themselves to a Human Resources environment. However, upon closer inspection many reveal themselves. Using an SPM solution allows sales representatives to gain increased visibility into their sales plans and incentives. It becomes a very simple task to understand what compensation is owed to the rep, as well as track their performance. This increased visibility not only makes business run smoother but creates trust and improves job satisfaction. With this level of clarity, reps will know exactly what to expect and be more motivated to fulfill quotas. When a clear goal is in sight, it becomes easier to visualize and reach for. This increased loyalty will strengthen the bond between salespeople and their parent company, as neither side will have to worry about the logistics of compensation, it’s all taken care of. With this out of the way, sales can become the sole focus of employees.

SPM solutions also increase accuracy and reduce payout times. Those who use ICM are able to reduce their payout process time by up to 65 percent and increase the accuracy of payments by up to 75 percent. It may sound simple, but attending to your employees in this manner is greatly beneficial. Why not make them happy? Why not remove the obstacles in their path? This is efficiency, the removal of barriers, and the streamlining of your process. Employees who are getting paid appropriately, quickly, and understand how and why they have received this payment, will be effective. They will stay with you and aspire to improve. Business 101 is making your employees feel appreciated, and why not do so by barely lifting a finger?

These processes will ease the strain on any Human Resources department, by improving the lives of the employees. Less time spent on payouts is time effectively spent elsewhere. Loyal employees work with HR, a well-oiled machine rather than taking up their time. These solutions have also been shown to reduce both the time and costs of training, saving you more time and energy. SPM and ICM solutions do not just help you track your sales team, but they facilitate inclusion and efficiency wherever they are found. Strengthening company bonds and easing the strain on seemingly unconnected departments are just another of the many impacts of a properly delivered Incentive Compensation Management solution.



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