Compensation Modeling


Client's sales force was compensated in accordance with hundreds of different sales plans. The sales compensation plans ranged in from simple to vastly complicated. Consequently, individual sales representatives had no easy way of predicting final compensation. Sales incentives were therefore unknown until a paycheck was delivered, consequently reducing the effectiveness of the sales plans.


The client needed to boost the effectiveness of their sales plan. The challenge was to develop a "what if" modeling tool custom tailored for each individual sales representative to allow them to model their net paycheck based upon attainment of their sales goals. The variables included hundreds of different compensation rules, different pay frequencies, and the uniqueness of each individual personal sales incentives.


Leveraging our sales compensation expertise, ADC consultants replicated the functionality of the client's sales compensation system in a single screen application. Each sales representative is now able to model their perspective pay based on different levels of performance with assurance that all the nuances of each plan's rules are taken into consideration.


Implemented in less than 60 days, the client's sales force now has a fast, accurate view of their personal compensation based on meeting individual objectives. This reduces the amount of time spent manually performing calculations and improves the accuracy of the resulting information. Additionally, the client has seen an overall increase in the effectiveness of the sales plans.