barcode font excel 2003 free Steps 1 2 3 4 Total Target Compensation Pay Mix Leverage Pay Opportunities in Software

Drawing Code128 in Software Steps 1 2 3 4 Total Target Compensation Pay Mix Leverage Pay Opportunities

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Formula Parameters $80,000 80/20 3x Base Salary Range Minimum: Midpoint: Maximum: Target Base Salary: Target Incentive: Outstanding Pay: Sales Volume: Meet/Exceed Target: Below Target: Performance Range $51,200 ($64,000 x 8 = $51,200) $64,000 ($80,000 x 8 = $64,000) $78,000 ($64,000 x 12 = $78,000) $64,000 ($80,000 x 80 = $64,000) $16,000 ($80,000 x 20 = $16,000) $112,000 ($16,000 x 3 + $64,000 = $112,000) 100% 60% 70% 30% 40% Percent to Goal Revenue 75% 100% 125%
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Measures and Weights Quota Distribution Performance Expectations
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Components Threshold: $64,000 (Base Salary) Target Incentive: $16,000 Excellence: $32,000 (Outstanding Pay) Pay Compensation by Performance Measure Sales Volume Result* Pay 75% $0 100% $16,000 125% $48,000
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Figure 6-20 Worksheet #4: Bonus Formula Rate
TLFeBOOK
Formula Construction
9 Calculate Formula Bonus Formula Payout Rate Express payout as a percent of salary range midpoint ($64,000) To calculate the bonus formula rate, determine the value of each percent for below-quota performance and then for above-quota performance
Below-Quota Performance Calculate the payout rate for below-target performance:
($80,000 $64,000)/$6 4,000 x 100 = 1% (100 75)
Above-Quota Performance Calculate the above-quota performance payout rate:
($112,000 $80,000)/$64,000 x 100 = 2% (125 100)
10 Publish Formula Base Salary Range Minimum $60,000 Bonus Rate For Each Percent to Quota 0 74% 75 100% Over 100% Pay a Percent of Base Midpoint 0 1% 2% Midpoint $75,000 Maximum $90,000
Figure 6-20 (Continued)
$112,000
Bonus Rate
2% of Base Midpoint per 1% of quota
Compensation
$80,000
s 1 Bonus Rate
1% of Base Midpoint per 1% of quota
$64,000
100% Target
125%
Percent of Sales
Figure 6-21 Bonus Formula Rate
TLFeBOOK
Six
Worksheet 5: Bonus Formula Matrix
Use a bonus formula matrix when territories are dissimilar in size and the salesperson must resolve objectives on two competing measures (see Figure 6-22)
Steps 1 2 3 4 Total Target Compensation Pay Mix Leverage Pay Opportunities
Formula Parameters $120,000 70/30 3x Base Salary Range Minimum: Midpoint: Maximum: Target Base Salary: Target Incentive: Outstanding Pay: Sales Volume: Price Realization: Meet/Exceed Target: Below Target: Performance Range $67,200 ($84,000 x 8 = $67,200) $84,000 (120,000 x 7 = $84,000) $100,800 ($84,000 x 12 = $100,800) $84,000 ($120,000 x 7 = $84,000) $36,000 ($120,000 x 3 = $36,000) $192,000 ($36,000 x 3 + $84,000) 50% 50% 60% 70% 30% 40% Percent to Goal Revenue 60% 100% 140% Price Realization 92% 100% 108%
5 6 7
Measures and Weights Quota Distribution Performance Expectations
Assign Pay Opportunities to Performance Expectations
Threshold: Target Performance: Excellence Performance: Total Pay Opportunity
Components Threshold: $84,000 (Base Salary) Target Incentive: $36,000 Excellence: $72,000 (Outstanding Pay) Pay Compensation by Performance Measure Sales Volume Pay $0 $18,000 $36,000
Cumulative $84,000 $36,000 $192,000
Minimum: Target: Outstanding:
Result* 60% 100% 125%
Price Realization Result Pay 92% 0 100% $18,000 110% $36,000
*Sales results are expressed as a percent of quota performance
Figure 6-22 Worksheet #5: Bonus Formula Matrix
TLFeBOOK
Formula Construction
Calculate Formula
Bonus Formula Matrix Establish the number of rows and columns 9 rows by 9 columns Determine penalty for achieving one goal without achieving the other: 40% loss of target bonus for revenue and price realization Set the corners 140 130 120 110 Sales 100 Volume 90 80 70 60 60 300
0 92
60 98 100 102 104 106 108 Price Realization
Fill in the diagonals 140 130 120 110 100 90 80 70 60 60 70 80 90 100 75 50 25 0 92 94 96 98 90 80 70 60 100 102 104 106 108 150 200 250 300
Complete the matrix 140 130 120 110 100 90 80 70 60 60 50 40 30 20 15 10 5 0 92 90 70 60 50 40 35 30 25 5 94 120 150 180 210 240 270 300 100 130 160 190 220 250 270 80 110 140 175 200 220 240 70 90 120 150 175 190 210 60 80 100 120 140 160 180 55 75 80 90 110 130 150 50 55 60 70 80 100 120 30 35 40 50 60 70 90 10 15 20 30 40 50 60 96 98 100 102 104 106 108
(features geometric progression)
Figure 6-22 (Continued)
TLFeBOOK
Six
Or, calculate bonus matrix with nonlinear slopes
140 130 120 110 100 90 80 70 60
60 50 40 30 20 15 10 5 0 92
80 70 60 50 40 313 225 138 5 94
100 90 80 70 60 475 350 225 10 96
120 110 100 90 80 638 475 313 15 98
140 130 120 110 100 80 60 40 20 100
180 1625 145 1275 110 90 70 50 30 102
220 195 170 145 120 100 80 60 40 104
260 2275 195 1625 130 110 90 70 50 106
300 260 220 180 140 120 100 80 60 108
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