Hi,
I am Alka Kaushik, working in Gurgaon as Sr. Executive HR for a freight forwarding company and presently working on recruitment of Sales Manager for our Mumbai Branch for which I require an effective incentive plan.
In general, it is given like:
If Monthly Salary Rs. X
Monthly Target Monthly Salary x 5
If targets achieved Incentive 10% of Monthly Target
For Eg: Rs. 50,000/-
Rs. 50,000 x 5 = Rs. 2, 50,000/-
Incentive will be 10% of Rs. 2, 50, 000/- = Rs. 25, 000/-
If Total Sale in a month Rs. X then Monthly Target – Exceeded Targets
For Eg: Rs. 4, 00, 000/-
(Rs. 2, 50, 000/-)
Incentive will be 10% of 1, 50,000/- i.e. Rs. 15, 000/-
Total incentive for the month will be
10% of Monthly Targets Rs. 25, 000/-
10% of Exceeded Targets Rs. 15, 000/-
Total Incentive for a month will be Rs. 40, 000
Please suggest me plan other than this.
Thanks
Alka Kaushik :)
From India, Calcutta
1I am Alka Kaushik, working in Gurgaon as Sr. Executive HR for a freight forwarding company and presently working on recruitment of Sales Manager for our Mumbai Branch for which I require an effective incentive plan.
In general, it is given like:
If Monthly Salary Rs. X
Monthly Target Monthly Salary x 5
If targets achieved Incentive 10% of Monthly Target
For Eg: Rs. 50,000/-
Rs. 50,000 x 5 = Rs. 2, 50,000/-
Incentive will be 10% of Rs. 2, 50, 000/- = Rs. 25, 000/-
If Total Sale in a month Rs. X then Monthly Target – Exceeded Targets
For Eg: Rs. 4, 00, 000/-
(Rs. 2, 50, 000/-)
Incentive will be 10% of 1, 50,000/- i.e. Rs. 15, 000/-
Total incentive for the month will be
10% of Monthly Targets Rs. 25, 000/-
10% of Exceeded Targets Rs. 15, 000/-
Total Incentive for a month will be Rs. 40, 000
Please suggest me plan other than this.
Thanks
Alka Kaushik :)
From India, Calcutta
Alka I reckon you adopt a piece rate system after benchmarking bare minimum.
Eg Salary 50k
Bare minimum target- 150k (5% incentives on achieving target)
150k to 250k- 10% incentives on achieving target
250k-300K- 15 %
300k above- 20%
Setting closer targets once the benchmark is achieved will push employees to work harder to achieve a level above...
From India, Mumbai
Eg Salary 50k
Bare minimum target- 150k (5% incentives on achieving target)
150k to 250k- 10% incentives on achieving target
250k-300K- 15 %
300k above- 20%
Setting closer targets once the benchmark is achieved will push employees to work harder to achieve a level above...
From India, Mumbai
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Incentive Plan.xls