These are the questions we set out to answer with our inaugural State of Incentive Compensation Management Report, which saw our team surveying 200 professionals directly involved in managing incentive compensation to learn more about what they’re focused on, what’s blocking them, and where there are opportunities to make ICM a more
strategic function.
Despite the economic uncertainties and market fluctuations faced by many over the past few years, compensation professionals report the organizations they work for are growing – and their programs need to scale and evolve in parallel with growth and expansion to ensure continuous alignment with business priorities.
manage 1,000+ payees
manage >25 plans
per month spent on manual tasks
per month for those who manage >25 plans
Despite comp admins reporting they’re satisfied with many aspects of their incentive comp program, there’s still a lot of manual work being done and a desire to move towards more strategic work. Essentially, there’s plenty of room for optimization and improvement.
There’s a lot of manual work being done by compensation leaders, and a desire to shift toward more strategic work.
Only 25% of those surveyed feel they can currently dedicate the right split between tactical and strategic tasks.
of time spent on strategic initiatives (performance analysis, plan optimization, commissions reporting)
of time spent on tactical tasks (cleanup, calculations, adjustments, process management)
Many discuss the transformative potential of compensation strategies in altering behavior, yet few employ it as a strategic tool. Instead, they become entangled in the minutiae of managing existing compensation structures. Overwhelmed by administrative duties, decision-makers often neglect to critically assess which behaviors they aim to incentivize and understand the subsequent effects on business performance and employee focus within variable compensation frameworks.”
Matt Curl
Strategic program planning that properly aligns with organizational goals is key for motivating the right GTM behaviors – but clarity, visibility, and communication to inspire payee trust are the necessary ingredients for driving the intended results.
Measuring plan impact, reporting on performance, and surfacing key data points for analysis is absolutely essential for strategic program success.
Organizations measure the actual effectiveness of their compensation programs with:
Percent of commissions accuracy
Revenue growth
Commissions time-to-payroll
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This report is part of CaptivateIQ's new thought leadership hub. Launching Summer 2024, The Multiplier will elevate the role of incentive compensation and performance management leaders with original research, key insights, and trends.
