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Employee Commission Tool (Incentives, KPIs, Rules) FULL GUIDE

Employee Commission Tool is based on KPIs and can be tracked through Wireless Standard Reporting.

What is a KPI?

Key Performance Indicator (KPI) is a measurable value that demonstrates how effectively a company is achieving key business objectives. Organizations use KPIs at multiple (location and employee) levels to evaluate their success at reaching targets.

How to configure employee incentives (commissions)?

In order to set up KPIs you will need to log in to reporting tool and click on the main menu button in the top right corner, then select “Performance Management” option from a drop-down list:



You will be prompted with the following toolbar below. 
· KPI – to create/manage KPIs;
· KPI Goals – to set up KPI goals;
· Incentives Rules – to create commission profile and commission rules;
· Rule Assignment – to assign commission profiles for employees and locations (stores\districts\divisions);
· Incentives Audit – Recalculation of commissions (Mandatory after any adjustments made in KPIs/ Rules);
· Incentives Reports – Employee\location commission reports.

1. KPIs

In order to create your own key business metrics with custom parameters, you will need to select "Create KPI" and choose one of the following options from the drop-down list.



KPI can be configured based on Product(s), Plan(s) or Plan option(s). You can also create attachment type of a KPI, which will measure a ratio of one KPI to another.

• KPI Properties
When creating a KPI, you can modify several KPI properties, including the name, description, KPI type, definition, measure.

• KPI Item
KPI Item indicates whether the KPI will measure the performance of a particular employee or an entire store

• Name
The KPI name must be unique for the company.

• KPI Description
The Description field contains the brief description for the KPI.

• Measure
The KPI measure is different for different KPI type

• Calculated as
KPI can measure performance accounting for the return transactions (Net) or not taking returns into account (Gross). E.g. if a KPI measures Qty of phones per employee and an employee sold 5 phones and returned 1 phone in this month, with Calculated as=Net the employee performance will be 4 and with Calculated as=Gross the employee performance will be 5.

• KPI Filters
Data filters will differ for each KPI type.  

Note, by selecting the whole department for instance “Accessories” will be automatically updating a list of all products beneath. e.g KPI was created on September 1st, but on September 2nd you created a brand new product under that department - system will automatically add it into KPI criteria  

2. KPI Goals

Once you create KPIs for your company, you can set Goals for sales reps and stores.

Note:  Goal setting is optional if you do not view KPI gauges and scorecards, and base your commission rules on KPI value and not KPI goal.

Select the KPI under the KPI name field,  set the period and enter the value under Goal tab (system will save a new value automatically).

An alternative way is to do this in bulk, click on "Export" button, then you will get an Excell file downloaded onto your PC, open it.

Enter the values under Goal tabs ONLY. You may type in the amount into one cell (as shown below), then point your cursor into a right bottom corner of the cell, hold the left-mouse button and drag it all the way down, thus Excel will automatically populate the same value to all desired cells. 

Once Excel file is filled out with correct data, save it somewhere onto your PC, then in Performance management tool click on "Import" button under "Rule assignment", and the system will upload your goals from the file.


After Goals are set, you may grant a permission to your employee to view KPIs as dashboard widgets.

In Wireless Standard go to Manage/ Administration tools/ User Administrator/ Role manager/ Select a role which is assigned to your employee/ Expand WS Reporting item/ grant "authentication access permission" + Employee KPI reports under KPI tab

Thus your employee will get a quick overview of the goal, actual as of month to date, projected, rate to goal percentage.

In order to access KPi widget in Reporting tool on the left-hand side click on Reports/ KPI/ select the desired KPI widget

 

3. Incentives Rules

After all necessary KPIs are created and all KPI Goals are set please click on “Incentives Rules” button and select “Create Profile”

“Create Incentives Profile” window will pop up and you will need to type in the name of the profile and select which value it is going to be based on (Employee or Location). NOTE: You can create multiple commission rules under one commission profile

Once it is created please find you newly created profile in the list and click on “create rule” button in order to add a new rule to your Commission Profile. Besides “Create Rule” you will have “Edit Profile”, “Delete Profile” and “Copy profile” options.

Once you click on “Create Rule” button “Create Commission Rule” window will appear where you will need to type in a rule name, select which value your rule is based on (KPI Value/KPI Goal).

NOTE: KPI VALUE option –gives you an opportunity to set and track employee commissions based on existing values from your KPIs, for this option KPI goals are not mandatory because it takes only current values from KPI. It also lets you select just one KPI at a time. If KPI GOAL is selected it will be tracking the percentage of the goal reached, and requires to have KPI Goals set at “KPI Goals” tab. It also allows you to select multiple KPIs at “Rule KPI” drop down a list and will be calculating results by the lowest percentage of goal reached.

Select KPI which will be used to calculate tier threshold. Add Rule tiers (From/To)
 
Select Payout method. Based on the value selected, the box below will load list of appropriate KPIs
 
Select Payout KPI depending on the Payout method you have selected
 
Specify Payout Value for each tier. The Value type is driven by Payout Method.
 
Example:

Payout Method - % Profit will pay X% from profit generated for the unit sold (10% of Accessory profit)

4. Rule Assignment

You can assign an employee incentives profiles to employees and a location commission profile to various location levels:

  • Store
  • District
  • Region

If an incentives profile is assigned to an employee, the employee will be receiving the commissions.

If a commission profile is assigned to a location, the sales manager for that location (store, district, or region) will be receiving the commissions.

Note: One employee or location can be assigned only to one Commission Profile for a particular month period.

To assign a commission profile:

  1. Click on Rule Assignment.
  2. In the Assignment Level drop-down list, do one of the following:
    1. Select Employee to assign a profile to employee(s).
    2. Select Store to assign a profile to store(s).
    3. Select District to assign a profile to district(s).
    4. Select Region to assign a profile to region(s).

Depending on the Assignment Level, the grid displays a list of employees or locations.

  1. In the Incentives Profile drop-down list, select the profile you want to assign.
  2. In the Period drop-down list, select the period for which you want to assign the profile.
  3. In the grid, select the check boxes next to employees or locations for which you want to assign the selected commission profile for the selected period.
  4. Click Assign.

Note: If another commission profile is already assigned for the selected period for the employees or locations, the new commission profile assigned will override the previously assigned one.

5. Incentives Audit (Mandatory)

  1. Click on Incentives Audit.
  2. Select the period for which you want to calculate incentives.
  3. Select the following settings if applicable to your company:
  • Tax exempt at zero incentives – select this check box if items sold to tax exempt customers shall not generate.
  • Return without a receipt at zero incentives - select this check box if items returned without receipt shall not generate commissions. If this checkbox is not selected, the commissions will be negative for the returned items.
  1. Click on Recalculate Incentives

The screen is locked while the commission calculation is in progress. It shall take up to 10 minutes depending on the number of transactions for the period, commission profiles assigned and the number of assigned employees and locations.

You will need to recalculate commissions for a previous or current month if you have:

  • Made changes to activations, commissionable employees, etc. in Wireless Standard;
  • changed commission rules in Commission Profiles assigned for the period;
  • Reassigned commission profiles.

Notes:

  • Commissions Engine works based on monthly payroll schedule.
  • By default, Commission Engine calculates commissions nightly MTD for the current month. Commissions for previous months need to be recalculated manually.

Once your system crosses into next payroll period (1st of the month) the commissions will continue aggregating based on Commission Profile rules from the previous period, but a user can change Commission Profile either for next period, prior to its beginning; Or once the new period is started.

5. Incentives Reports

In order to see the commissions for an employee or location, make sure that incentives have been previously recalculated. Then run one of the following reports: 

 
 
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