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Running a business can be very troublesome at times, you must keep an insight on every aspect deciding the productivity and growth of your business. You must ensure that your employees are working with their best potential and are putting in all the effort, even more than what is needed if possible and if they do work sincerely with all their might you as an employer must ensure that they are duly awarded. You must make sure that apart from the designated salary they also receive a certain incentive on attaining a certain target assigned to them. Every business out there exercises this common practice of offering sales commission or Sales Performance Incentive Fund better known as SPIFF to their sales reps. This way they motivate their sales reps to put in more effort and work with more sincerity towards their job, in this way it also boosts the productivity of the business for a short term.
Companies make a detailed and dedicated sales commission plan based upon the Sales commission template and on the basis of this plan, the sales reps are further awarded their fair share of sales commission once they achieve the very target assigned to them. A certain time period is allocated to them within which they must achieve the target in order to receive an incentive. The commission plan is either made manually through spreadsheets or through softwares. It can be easily concluded that using a software over the manual ways is better and convenient by all means. But we shall establish a contrast between the two for a better insight and understanding.
Why is it more troublesome to use a manual method of commission planning through spreadsheets?
Using spreadsheets for making a sales commission plan manually would certainly indicate that the planners have not thought about the entire planning properly. Making your commission plan manually through these spreadsheets would only bring about unwanted and uninvited troubles. Let us have a little peep into what troubles you would actually face.
- Errors and miscalculations: Since all the calculation is being done manually, it is prone to errors and miscalculations which would certainly mean a major setback for the sales team every now and then because every time there’s an error you would have to have someone look into it and rectify it, which would demand extra time and extra manpower thereby compromising productivity.
- As a leader, the top brass have hardly any time to spare to look into these minor issues which would in turn often be left unaddressed and unaccounted for, ultimately leading to dissatisfaction and even disputes at times.
How are commission management softwares better than spreadsheets?
Commission management softwares is better than manual commission planning through spreadsheets by all means for they offer the features mentioned below.
- Accuracy: Since all the calculation is being done by the software itself, evidently there would be no such errors or miscalculation which would in return provide accuracy in commission calculations.
- Transparency and accessibility to data: A software would offer transparency in the commission statements and would also provide accessibility of the data to the reps. With real time, exposure to all the data the reps can receive an insight into their earnings and performance and therefore act accordingly.
Other than these two features softwares offers many more features like flexibility and data insights. There is a one stop destination for all your needs and expectations, ElevateHQ, the elevate sales commission software offer both the above features, in addition it also offers many other unmatched features which you can account for by yourself once you give it a try.