Hello, I am working with a software company, and the management has recently decided to recruit a Business Development Manager. I am asked to develop an incentive plan for BDM, for the business they bring to the company. I know that incentive plans vary from company to company, and as I have not dealt with this before, I have no clue how to go about it. I would be thankful if you could share your company's incentive structure or give me guidelines to create one for my company.
From India, Cochin
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From India, Cochin
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Dear Srirani,
Please go through the material at https://www.winwithoutpitching.com/b...ensation-plans and then kindly tell us how you intend to proceed.
From United Kingdom
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1708Please go through the material at https://www.winwithoutpitching.com/b...ensation-plans and then kindly tell us how you intend to proceed.
From United Kingdom
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Hi Srirani,
I suggest you first start with KRA for the position followed by KPI. When you have agreed on KPI, you need to ask the stakeholder what additional factor in the KPI will impress them regarding the candidate's performance. When they mention that it will be the incentive plan, that's your cue.
An example from my past company: the KPI for a Business Development Manager was to meet at least 5 prospects per quarter, convert at least 2 prospects into proposals per quarter, and secure at least 1 win semi-annually. The incentive plan was structured as follows: achievement less than 50% received no incentive, 50%-70% achieved a 50% incentive, and so forth. The incentive payable was 5% of Gross revenue.
If you want to add more challenges, consider introducing the Balanced Scorecard (BSC). I recommend implementing the BSC once the employee joins. If I were in your position, I would introduce it when the candidate starts and define it with them, their manager, and align it with the company's objectives.
I hope that makes sense.
From Saudi Arabia, Riyadh
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I suggest you first start with KRA for the position followed by KPI. When you have agreed on KPI, you need to ask the stakeholder what additional factor in the KPI will impress them regarding the candidate's performance. When they mention that it will be the incentive plan, that's your cue.
An example from my past company: the KPI for a Business Development Manager was to meet at least 5 prospects per quarter, convert at least 2 prospects into proposals per quarter, and secure at least 1 win semi-annually. The incentive plan was structured as follows: achievement less than 50% received no incentive, 50%-70% achieved a 50% incentive, and so forth. The incentive payable was 5% of Gross revenue.
If you want to add more challenges, consider introducing the Balanced Scorecard (BSC). I recommend implementing the BSC once the employee joins. If I were in your position, I would introduce it when the candidate starts and define it with them, their manager, and align it with the company's objectives.
I hope that makes sense.
From Saudi Arabia, Riyadh
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Incentive Plan.xls
Incentive Plan policy-template s.doc