Managing Commissions for Sales Reps with the Same Commission Structure Just Got Easier!

As a compensation administrator it is quite common that you will end up dealing with similar commission structure for a range of sales reps. For example, imagine a manufacturing industry where the commissions vary based on products. Here, for a number of sales reps, you may be having the same commission structure.

 

For this to be setup, you might start creating multiple excel sheets for each of those reps or copy over the same plan in your automated system for the matching reps. There are few drawbacks for such a setup. They are:

 

1. It becomes difficult to manage over time.
If there is a change in the plan, as it usually happens over time, you will have to edit all those copied over plans. That is, if there is one change and you have 10 reps on that plan, you will have edit all the ten plans.

 

2. More error prone
As with all kinds of manual efforts, any changes on the plan can result in manual errors that leads to rep’s distrust and frustration. This is usually an overlooked factor in commission processing and more on this aspect is explained in an article here.

 

Solution
Now that we know that this is a problem, how can this be effectively solved? Rep association feature in easy-commission tries to address this problem. Let’s take a simple scenario and try to set that up using this feature.

 

Example
Our example commission plan is:
For a rep’s sale,
If the product is ‘Nuts’ pay 5% and if the product is ‘Bolts’ pay 6%.
Imagine that the sales reps Andy, Brandy and Smith have the same structure mentioned above.
rep_association_plan_structure
Let’s setup the plan for Andy, that pays him 5% for Nuts and 6% for Bolts on his sales.

 

Now credit him only his own sales
crediting

 

And pay commissions based on the following structure
commissions

 

Sine Andy’s plan is ready now, let’s go ahead and associate the same commission plan for others (Brandy and Smith). To do this, on the selected plan, choose the action ‘Associate more reps’.

associate_action1

 

Let’s associate this commission plan to the other sales reps.
associations

 

It’s done. From now onwards, any changes to this plan will immediately get affected to all the other associated reps. Below is a video that demonstrates the Rep Association feature.

For more information on other features, visit the features page here.
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