The Problem: Inefficient Compensation Processes
A leading global manufacturer built its success on efficiency, innovation, and a commitment to operational excellence. However, as the company grew, its sales compensation processes struggled to keep pace.
Managing sales compensation was time-consuming and error-prone. The team was still using manual spreadsheets. Compensation analysts spent countless hours inputting data, validating figures, and troubleshooting discrepancies. These inefficiencies led to delayed or incorrect commission statements, leaving sales reps frustrated and questioning their earnings.
Beyond spreadsheets, the team’s incentive compensation management (ICM) system required complex coding and extensive back-office work. Every adjustment felt like a challenge, creating bottlenecks and increasing the risk of errors.
As one senior compensation analyst put it, “Our old system was time-consuming and complex. If you didn’t know what you were doing, you could mess things up pretty badly.”
Mistrust and Lost Productivity
The inefficiencies weren't just an inconvenience; they were costing time, money, and trust. Processing payroll took up to six hours each month. Year-end reconciliations dragged on for days, cutting into employee vacation time. Sales teams, left in the dark about their earnings, flooded compensation teams with inquiries, creating even more delays.
“We had reps constantly asking about their commissions because they couldn’t track them in real time,” the analyst explained. “We needed a solution that could automate these processes and give our sales team visibility into their earnings."
After evaluating options, the company turned to Varicent. The decision was driven by Varicent’s intuitive interface, powerful automation, and real-time compensation tracking—features that would not only streamline internal processes but also rebuild trust among sales reps.
The Solution: Real-Time Automation Saves Time and Money
The transition to Varicent was a turning point, enabling the company to streamline compensation processes, increase payment accuracy, and enhance visibility for sales teams. Immediate improvements were seen across the board.
With automation, payroll processing that once took nearly an entire workday was now completed in just one to two hours—an 80% reduction in processing time. The year-end true-up, which previously required multiple employees working for days, was now calculated in real time, eliminating the need for last-minute manual adjustments.
For the sales team, the impact was equally transformative. Instead of waiting until the end of the month to understand their commissions, reps could now see earnings the day after an invoice was paid. This level of transparency drastically reduced compensation-related inquiries, freeing up time for both sales and compensation teams.
