Turn on the TV or open a newspaper and the headlines scream economic downturn.  Whether this turns into a real recession remains to be seen, but there can be no denying the enterprise ‘belt tightening' happening everywhere.  As a result, organizations are undertaking stringent financial reviews of their businesses with emphasis on maximizing profitable revenue and controlling costs.

It may seem counter-intuitive then, that in this climate, many businesses are investing in Incentive Compensation Management (ICM) software.  However when you understand how quickly and effectively ICM delivers results, the investment seems like a bargain.

Analysts estimate companies without ICM software to help standardize and monitor performance-related commission, overpay by up to 12% of the annual compensation budget.  Combine that with the an estimated 5% of selling time lost every month by staff recalculating their pay, the business impact of ICM  software is dramatic.

Equally important in today's market is the fact that ICM can be a strategic lever used to influence sales behavior - whether that's pushing a certain high margin product, or up-selling services.  Additionally, ICM software can have a positive impact on staff turnover in a short space of time. With the ability to track their individual commission payments in real time, staff are more motivated and more directed in their activities.  On top of that, organizations offering ICM-driven compensation plans have also been proven to attract top sales talent.  Good sales people recognize their earning potential through un-capped, transparent pay for performance schemes. 

So what's the return on investment for ICM?  With a revision of incentive plans and promotions, ICM has been shown to increase productivity and provide a competitive advantage almost immediately.  So although the credit crunch is nipping at the heels of many organizations, savvy companies are still spending wisely - investing in technology which has a proven track record of increasing revenue and productivity.

For in-depth examples on how organizations have used ICM strategically to drive revenue check out our Case Studies database.