Varicent™ Incentive Compensation Management

Varicent solutions simplify incentive compensation management for organizations by increasing accuracy, reducing costs, and improving sales performance. Compensation administration costs are significantly reduced through the automation of commission calculations. Eliminating slow, costly, and manual administrative processes helps minimize calculation errors that lead to commission overpayments and payment disputes. With Varicent, sales professionals gain extensive visibility into their pay, significantly reducing the time and effort spent on reconciling commissions. Sales representatives also receive embedded analytics to gain insight into their own performance. Compensation administrators can implement new plans more efficiently to respond to new business imperatives. Analysts can model and better understand the financial impact of incentive programs prior to rollout for more accurate cost management and forecasting. A detailed view of the entire compensation plan portfolio, along with tracking capabilities, allows organizations to have more control over sales compensation administration and meet audit requirements.

Automating Compensation

Varicent automates the entire compensation process, including data collection, compensation calculation, and commission statement distribution. By collecting data from sources such as existing systems, databases, and PDFs, Varicent provides a single, more accurate view of data for commission calculations. The solution's flexible and scalable calculation engine performs the necessary calculations to match compensation plans and definitions. Organizations can improve performance while significantly reducing errors and wasted time.

More Accurate Payout Results

By eliminating the need to manually manage splits, reassignments, and other exceptions, Varicent improves accuracy, auditability, and visibility in compensation management. Compensation teams can dramatically increase their productivity as the solution automates the process of identifying exceptions and calculating commissions accordingly. As a result, organizations can validate payouts, reducing commission overpayments and disputes.

Detailed Commission Statements

Varicent delivers personalized commission statements that provide payment details down to the transaction level for tracked payees. Up-to-date performance data and what-if calculators enable sales representatives to understand their rankings and earning potential, motivating them to close more sales. With extensive visibility into their pay and performance, salespeople spend less time on shadow accounting and payment inquiries, dedicating more time to selling.

Rapid Deployment

Implementation costs can be dramatically reduced using Varicent's rapid deployment model. With a robust, pre-configured model of compensation plans, processes, connectors, and reporting templates, organizations can greatly accelerate the deployment of incentive programs. This pre-built model is based on tried and tested implementations and experience, allowing users to adopt industry best practices in compensation plan design.

Owned by Business Users

Varicent enables business users to create, modify, and implement compensation plans to drive desired sales behavior. Compensation analysts can define calculation rules without requiring IT knowledge or coding skills. Rules are also displayed graphically, allowing for easier navigation through even the most complex plans, and are reusable across incentive programs. With Varicent, compensation teams can implement virtually any compensation plan they need.

Robust Plan Modeling

Compensation analysts can model compensation plans to understand the financial impact of changes. Using historical or other base data, users can test the effectiveness of compensation plans against multiple scenarios. Modeled results can be evaluated from multiple perspectives, including the expected payout change on the business and on specific sales individuals. The ability to more accurately forecast commission payouts allows organizations to better budget for sales compensation costs, manage target total compensation for sales representatives, and assess plan effectiveness.

Governance and Compliance

By providing a single view of the compensation plan portfolio and tracking all user activity, Varicent solutions help organizations more adequately meet audit and compliance requirements. Access to data is restricted by user rights, and modifications to compensation processes are logged with timestamps. With expansive audit trails of changes and events, organizations can more accurately trace commission payments back to their source.

Sales and Compensation Dashboard Overview

The Sales and Compensation Dashboard provides a comprehensive view of sales performance and compensation details. It includes:

• Manager Summary: High-level overview for managers.
• Team Performance Summary: Aggregated team performance metrics.
• Actuals Summary: Actual performance figures.
• Team YTD Trend: A line chart showing Year-to-Date performance over months, comparing 'Target' and 'Actual' values.
• Credit vs. Final Payout: A bar chart comparing 'Credit' earned against 'Final Payout' disbursed over months, with a legend for 'Target', 'Attainment %', 'Credit', and 'Final Payout'.
• Payout Summary: A breakdown of 'Final Payout' into components like 'Commission', 'Bonus', 'Manual Payments', 'Draws/Min Guarantee', 'Draw Recovery', 'Balances', 'Prior Period Adjustment', and 'Negative Balance'.
• Team Payout by Plan: A table detailing payee information including 'Payee ID', 'Payee Name', 'Comp Plan', 'Year', 'Months', 'Currency', 'Final Payout', 'Commission', 'Bonus', 'Manual Payment', 'Draw', 'Draw Recovery', 'Negative Balance', 'Prior Period Adjustment', 'Attainment', and 'Target Credit'.

Additionally, the dashboard supports key strategic objectives:

Grow, Retain, and Satisfy Customers

• Align sales resources with corporate strategy.
• Enable new kinds of plans and objectives that drive how clients are sold and serviced.
• Deploy territory structures and coverage models to support evolving customer needs.
• Gain insight into sales effectiveness.

Transform Financial Processes

• Model compensation plans before rollout to understand and optimize their impact on the business.
• Create more accurate forecasting and accruals.
• Reduce manual intervention and errors.

Increase Operational Efficiency

• Reduce related compensation, territory, and quota cycle times.
• Deliver detailed, personalized incentive statements and reports to improve understanding and decision making.
• Leverage workflow for Sales Performance Management processes, including inquiries and disputes.
• Ensure process scalability and flexibility.

Manage Risk, Fraud & Regulatory Compliance

• Meet business and regulatory needs for controls and auditability into the compensation process.
• Provide program and process reporting.
• Improve program governance.

About Varicent™

Varicent helps clients accurately track, manage, and report on sales processes through the industry-leading Sales Performance Management (SPM) solution. Established in 2005, Varicent innovated the SPM software industry by developing business tools for Incentive Compensation, Territory, Quota, and Channel Management. With Varicent's augmented intelligence-powered platform, customers realize bottom-line efficiencies and top-line results through sales dashboards and models for better decision making at all levels of the business.

For More Information

To learn more about Varicent's solutions, contact your Varicent sales representative or visit: www.varicent.com

© Copyright Varicent 2020

Varicent™
Canada: 4711 Yonge St., Suite 300
Toronto, ON Canada M2N 6K8
March 2020

Varicent and the Varicent logo are trademarks of Varicent. Other product and service names might be trademarks of Varicent or other companies.