People are using Makana Motivator to analyze their compensation plans in new ways and seeing a few surprises while they are doing it. Often times when a compensation plan is designed in excel or worse on the back of a napkin, it is hard to analyze the plan. In addition to being hard to see things in excel, may times the designer runs out of time to really analyze the plans. Here are the 3 plan surprises that I here most frequently.

1. Paying too much for under performance
• People are really surprised by what they are spending for under performance. They never took the time to figure out what the plan will pay out at 50% of quota. I never realized that I am spending that much for under performance is a common comment when they first view their plan payout by looking at the graphs in Motivator.

2. Paying too little for over performance
• People are really surprised by how little they are paying for over performance.Often times the same rate continues well beyond attaining quota or jumps up some but not enough. Wow I thought I was paying much more when they exceeded their target is a common comment I hear when looking at the plan payout above quota.
  

3. Not paying the right amount for on target performance
• People are surprised that the plans they designed are not paying out what they expected to pay out when the reps makes his quota. And to make matters worse, more than half of the plans I look at are actually paying outmore at 100% performance then the designer had intended.

Motivator can help you analyze your current sales plans now.  Once your plans are easily entered in Motivator, you can use the graphs and mini-modeling capability to understand what your sales plans are really paying out.  In the By Total Attainment graph, you can easily see that the plan as designed will pay out the correct TTC (Target Total Compensation) at 100% attainment.  You can also use the sliding bar to change the attainment to analyze various levels of attainment.

Teanna Spence
Compensation Director