What better than a quiz of incentive compensation to address this summer period with confidence? Primeum wishes you a happy holiday.
1 / Is the following statement true or false?
The fixed salary pays for the job, experience and skills. Variable incentive compensation reflects individual or collective performance.
A/ true
B/ false
2 / How to avoid the fridge effect (the "fridge" technique consists in slowing down the sales process on a performance cycle and postponing these sales to the next cycle)?
A/ Use compensation curves that evolve continuously so as not to have stepped curves
B/ Set up a closing time bonus to encourage salespeople to finalize their action
C/ Sanctioning by setting higher goals for the next period
3 / Why encourage your salespeople to fill the CRM of the company after their customer appointments?
A/ So that you can check their productivity and better adjust their individual compensation
B/ So that they can rely on the valuable information needed to qualify their actions
4 / How to train your salespeople for the use of Linkedin will it allow you to improve the performance of your company?
A/ This system helps your salespeople to fully monitor the digital presence of their main competitors and thus gain productivity through the acquisition of key information on competitors
B/ This helps to show them that their company is concerned about improving their employability and contributes to improving the overall well-being of employees. Happy employees are more successful.
C/ This allows you to give the best tools to your sellers, by involving them in your social / digital strategies and by encouraging them to develop sales through social networks
5 / Variable pay is considered insufficiently motivating if it does not represent at least:
A/ Between 2 % and 7 % of fixed salary
B/ Between 8 % and 20 % of fixed salary
C/ Between 21 % and 41 % of fixed salary
D/ More than 50 % of fixed salary
6 / The principle "The more I sell, the more I earn" does it correspond to:
A/ Commissioning system
B/ Sales versus target bonus
C/ Ranking bonus
7 / How can incentive pay plan be a source of demotivation for your teams?
A / By setting up a scheme that is not adapted to the performance criteria
B / When management differentiates bonuses between employees
C / When the incentive compensation system relies on subjective criteria to evaluate the quality of work produced
8 / Why rely on software solutions when setting up an incentive compensation system?
A/ Because errors are more common on an excel file, errors can be very problematic when it comes to the incentive compensation of hundreds of employees.
B/ The software provides both flexibility and security in the transfer of data from servers in different departments of the company.
C/ Because a digital tool can communicate to all employees but it also helps everyone to simulate future incentive compensation.
9 / What is a sales versus target bonus rewarding performance effectively?
A/ A bonus that simultaneously takes into account qualitative and quantitative indicators: customer satisfaction, customer conversion rate, prospection of new customers
B/ A bonus based on the award of a target bonus to the objective achievement and a maximum bonus calibrated according to the dispersion of the achievements on past objectives
10 / When to introduce a collective part in a variable incentive compensation?
A/ When you want to stimulate collaborative work
B/ When you didn’t get accurately the individual achievements
C/ When you would like to introduce a qualitative part
ANSWERS TO THE QUIZ OF INCENTIVE COMPENSATION
1/ Answer : A
2/ Answer : A
Explanation : Find the 3 mistakes to avoid when defining an incentive scheme
3/ Answer : B
4/ Answer : C
5/ Answer : B
Explanation: The incentive compensation must represent at least one month of salary to be able to generate a real motivation and to modify behaviors durably. Moreover, according to an APEC study, it is particularly motivating from 1/5 of the gross salary on a commercial population
.6/ Answer : A
Explanation: Indexed to turnover excluding taxes, quantity sold, gross margin, etc., the commission is rarely capped.
7/ Answer : A and C
Explanation: Bonus differentiation of your employees is not necessarily a bad thing for their motivation. The prospect of being able to earn a lot has a strong impact on so do not hesitate to have scales making greater differences between a salesperson having achieved the performance and another in outperformance.
8/ Answer : A, B and C
9/ Answer : B
Explanation: A sales versus target bonus must be particularly well defined to be effective. Find all our tips in this article.
10/ Answer : A and B
Explanation: Find our article on collective bonus
