Incentive Compensation Management

Incentive Compensation Management (ICM) refers to the systematic approach companies use to plan, implement, and manage financial rewards for their employees, particularly in sales roles. It involves setting performance targets and designing reward structures, like commissions or bonuses, to motivate staff to achieve specific goals. By aligning employee incentives with business objectives, ICM aims to boost productivity, enhance performance, and drive overall company success. Effectively managing these incentives ensures fairness and transparency, helping employees understand how their efforts contribute to their earnings and the organization’s growth.