Hello, I am working with a software company and the management has recently decided to recruit Business Development Manager. I am asked to develop an incentive plan for BDM, for the business they bring to the company. I know that the incentive plans vary from company to company, 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 incentive structure or give me guidelines to create one for my company.
From India, Cochin
From India, Cochin
Dear Srirani,
Please go through the materil at https://www.winwithoutpitching.com/b...ensation-plans and then kindly tell us how you intend to proceed.
From United Kingdom
1621Please go through the materil at https://www.winwithoutpitching.com/b...ensation-plans and then kindly tell us how you intend to proceed.
From United Kingdom
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 stake holder, what is that additional in the KPI will make them wow on the candidate performance. And Bingo, when he answers that "that will be the incentive plan".
Example from my past company; KPI for BDM was to meet atleat 5 prospects per Quarter, and convert atleast 2 prospects in to proposal per Qurater, and have atleast 1 win in Half yearly. Incentive plan. (Achievement less then 50%=no incentive, 50%-70=50% Incentive, and so forth). Incentive payable was 5% of Gross revenue.
If you must add some more challenges have Balance Scored Card (BSC) also introduced. I would suggest to have BSC once the employee joins. For if I am in your place, I will do it once the candidate joines and define it with Him, his manager and align it with company objective.
Hope that makes sense.
From Saudi Arabia, Riyadh
I suggest you first start with KRA for the position followed by KPI.
When you have agreed on KPI, you need to ask the stake holder, what is that additional in the KPI will make them wow on the candidate performance. And Bingo, when he answers that "that will be the incentive plan".
Example from my past company; KPI for BDM was to meet atleat 5 prospects per Quarter, and convert atleast 2 prospects in to proposal per Qurater, and have atleast 1 win in Half yearly. Incentive plan. (Achievement less then 50%=no incentive, 50%-70=50% Incentive, and so forth). Incentive payable was 5% of Gross revenue.
If you must add some more challenges have Balance Scored Card (BSC) also introduced. I would suggest to have BSC once the employee joins. For if I am in your place, I will do it once the candidate joines and define it with Him, his manager and align it with company objective.
Hope that makes sense.
From Saudi Arabia, Riyadh
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Incentive Plan.xls
Incentive Plan policy-template s.doc