Why is ICM so overlooked?
Most companies, certainly in Europe, still rely on spreadsheets and homegrown systems to administer the incentive compensation process. In principal, these tools are adequate and do a good job. However, ICM software automates the process of creating and maintaining incentive schemes as well as the calculation and reporting on commission and bonus spend. ICM is effective because it significantly reduces the likelihood of commission overspend and unnecessary administration overhead. Real-time systems integrate with HR systems introducing workflow management as well as authorisation controls for payment and statement release. The benefits to HR are: control of the commission strategy by implementing plans appropriate to employee roles and aligning productivity with overall business targets and objectives. Individual staff benefit directly from the implementation of an ICM system because they have access to personal online statements. These clearly identify where, as an individual they are
