Project case:
Performance-based incentive system in sales
Objective
The goal of this project is to develop and implement a variable incentive system for sales force. The target system of a construction supplier should be applied by the sales employees, thereby issuing individual targets and transparently measuring the target achievement. Due to the different international strategies and degrees of market maturity, a country-specific adaptation has to be implemented.
Approach by EbelHofer Consultants
First, the most important KPIs are developed. These are intended to measure the contribution of a sales employee to reach the company's goals and help derive the incentive components. Supported by a specifically developed tool country-specific adjustment of the system and - based on the weighting of strategic goals, target values for individual employees and the individual salary structure - individual calculation of remuneration components (e.g., bonus function with target value, commission rates) can be evaluated. In addition, a tool-supported planning and target agreement process is initiated and a controlling system for management and sales staff is developed. The system will then be piloted and successively rolled out internationally in 16 markets, accompanied by management and sales force training.
Result
The developed sales force incentive system meets high levels of acceptance amongst sales staff and management. They achieve significant improvements in results and increase efficiency after being incorporated into the sales management and controlling processes.
