Testing and Approval
Compensation plan design validation through thorough and rigorous testing will avoid unexpected payout or cost outcomes. Review of testing results as part of the approval process secures buy-in and support from the many stakeholders including business unit leaders, leaders from Sales, HR and Finance, and the sales people.
Plan testing and approval includes:
- Modeling of the effect of the new sales compensation plans on all eligible individuals (view a sample incumbent model)
- Modeling of the cost of the plan under a range of likely business performance scenarios (view a sample aggregate cost model)
- Final sales compensation plan designs, improved based on modeling results
- Approvals and buy in across all departments
Testing your new sales compensation plans will help you understand the financial impact of potential changes for both the business and plan participants while minimizing the possibility of unexpected plan costs or effects on individuals. The approval process establishes leadership buy-in and prepares the organization for plan implementation.
