What is Sales Compensation Software?

Introduction

Sales compensation software automates the administration and accounting of incentive plans and commissions based on multiple customizable policies including employee role, sale type, and staff member tenure. It permits sales professionals to see their quotas and progress, while allowing management to create reports to get insights into sales performance. The platform is used by sales, administration, and accounting teams.

As sales compensation models are typically different compared to other business structures, this software enables a company’s accounting practices to become less error-prone and time-intensive. Sales compensation software is usually deployed as part of a wider compensation software ecosystem. The system integrates with other sales applications like sales gamification, sales analytics, and sales performance management.

In short, sales compensation software facilitates the administration and customization of sales-based compensation packages, generates reports for analysis of sales performances, and integrates with sales, accounting, and administration tools.

Features of Sales Compensation Software

Recurring Commissions

Sales compensation software allows you to easily set recurring commissions and give out annual, quarterly, or monthly payments. You can leave the dates as indefinite or pre-set the number of recurring payments. For finite deals, you can specify the end date and the application will automatically close the payments accordingly.

Adjustments and Clawbacks

Sometimes, employers need to recover extra compensation paid to a staff member as a result of wrong financial calculations. Sales compensation software effortlessly manages these adjustments or clawbacks. You can simply enter the amount in the dashboard and the program will automatically compute the change.

Multi-Currency Support

For globally distributed sales agents, the software offers a multi-currency function that enables businesses to pay these reps in their local currency. You can select a different currency for every sales agent as needed, as well as another one for the sales manager who gets overrides.

Varied Commission Structures

Sales compensation software can help you save valuable hours computing the commissions for your sales reps. The product offers a simple-to-use wizard to produce complex commissions which may be tiered or flat, product, profit or revenue based.

Manager Overrides

Sales managers of sales teams are responsible for the performance of the reps and therefore they usually get a percentage of the commission based on the achieved sales. The sales compensation system allows you easily handle manager overrides and you can set it up as part of your commission plan.

Benefits of Sales Compensation Software

Handle Complex Compensation Plans

Each company employee has a different compensation structure based on their qualifications and experience. The sales unit has employee contracts that differ in complexity. This makes calculating their compensation and commission a hassle, which can be easily fixed by using sales compensation software.

Eliminate Compensation Disagreements

Disputes can arise if the sales unit does not have a proper compensation system that can accurately calculate the commission of each sales rep. A good sales commission solution can help to eliminate these disputes as it can precisely compute the commission and payment owed to each sales agent based on their performance.

Improve Productivity

Your company can invest in a sales compensation software to compensate your staff correctly for their efforts. The system can quantify the work performed by employees and pay them accurately for their achievements which can help to motivate them as they’ll be assured that they’ll get handsome rewards for excellent performance.