Can anyone share with me their incentive plan including some criteria and percentages?
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Posted 1 year ago #
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Is this a question about incentives for one person or for the credit and collection group?
Posted 1 year ago # -
As a one women show, I was not aware credit/collection employees may be based on incentive plans-interesting! :-)
Posted 1 year ago # -
I am generally against incentive plans, they are too easy to manipulate and can encourage employees to sandbag their performance if they have already reached 100% and there is no incentive to hit 110%. It only makes sence to hold that 10% over until the next period.
Posted 1 year ago # -
Incentive plans are excellent, but have to be based on a longer period, not just every month. Our incentive plan is based upon the year's stats, primarily DSO, as well as specific targets, such as reducing the balance beyond a certain part of the aging, say ninety days, by a specific figure. That's very hard to sandbag, since there is a clear benchmark and it has to be met over the space of a full year.
Monthly collections, IMHO, should never be part of an incentive plan, unless it's for someone working solely in the capacity of a collector, in which case they aren't in a *credit* position as such. Stretching the time span of a metric makes it much harder to manipulate.
Posted 1 year ago #
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