Elements of Package
A compensation package comprises several elements. If you imagine a gift box that contains a couple of different items, it would be easier for you to understand the concept of a package.
In a package, you are able to conduct the following actions:
- Creating Plans
- Creating Measurements
- Defining Formulas
- Assigning Payees
In order to create a package:
- Mouse-over Compensation from the top menu bar
- When sub-menu flies out, click Package
- Click Add New Package button
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Add New Package
- Name the Package
- Set the Expiry Date
- Click Save button
The page is forwarded to the Package Detail page. There you can create new Plan and Measurement. Formulas are secondary measurement. To find out more about formula, click HERE.
Package Detail Page – Create New Plan and Measurement
Plan vs. Measurement
Each topics are devoted in another page to discuss how they differ, and how users can maximize their distinguished features and capabilities in further depth. Go to Plan and Measurement page to learn more about them.
Generally speaking, the source of the sales compensation payment is determined at the earliest stage in designing sales compensation plans and policy. In order to decide the sources, you may answer to some of the questions below:
- Are we rewarding sales performance whenever individual transaction occurs?
- Do we have a sales performance standard, and sales reps are expected to meet or exceed the quota for a given period?
- Is sales reps’ performance accumulated throughout the plan year?
Plans
When you decide to pay the sales reps for every transaction they generate, you will need to create a plan and write rules according to your business requirements.
Measurements
When you decide to pay the sales reps for their performance for a given period, you will need to create a measurement and formulas in order to gauge their performance progress and the amount of commission depending on individual’s performance level.
Assignment
It is going to be discussed in further detail in Assignment, but it is worth noting that assigning payees is one of the most important steps that users shouldn’t forget.