Growing businesses have another reason to pay attention to their incentive compensation plans starting January 1, 2013.
A new law, California Labor Code § 2751, goes into effect that day. It will require contracts between sales reps and their employers to specify exactly how incentives are calculated and commissions paid.
We predict that leading companies will prep for this legislation by automating their sales compensation with commission tracking software. While it might sound easy to manage incentive compensation in Excel, many companies know it’s not. Spreadsheets are complicated and prone to errors. Commission payments are often late and inaccurate.
But where Excel fails, technology excels. (Yes, that pun was intended.)
The secret that these businesses know is that commission-tracking software makes it easy to avoid errors and create an auditable trail. And, those are just a starting benefit. Others include a dramatic reduction in admin time and faster revenue growth.
But what’s most important when it comes to this new legislation is having an automated paper trail in one place.
You can think like an enterprise and automate your sales compensation.
To find out more about paying commissions accurately and on time, check out this 1-minute video: Incent right with Express.