Market Overview

Xactly Study Finds Incentive Compensation Errors Costing Enterprise Companies Millions


Annual Best Practices Survey Shows Over 80 Percent of Companies Have
Inaccuracy Rates of Higher than Five Percent, Representing a Huge
Revenue Cost

Today, at the WorldatWork Spotlight on Sales Compensation conference, Xactly,
the leading provider of cloud-based sales performance management (SPM)
software, announced findings from its annual 2018 Sales Compensation
Best Practices Study. Co-sponsored by OpenSymmetry, this year's study
found that organizations spend, on average, 10 percent of revenue on
sales compensation; however, 83 percent of companies have payment
inaccuracies, at an average rate of higher than five percent. For
enterprise companies with revenues of $100 Million, even just a one
percent error rate in compensation payouts can cost up to millions of

"With a tenth of revenue being spent on incentive compensation, leaders
have an obligation to ensure that this money is being spent
appropriately," said Christopher W. Cabrera, founder and CEO of Xactly.
"Errors in commission payments represent a huge business cost – in terms
of revenue attainment, as well as employee trust, motivation, and

As a result of delayed and inaccurate payments, lack of program
visibility, and overly complex compensation plans, the survey found that
the vast majority of organizations don't maximize the ROI of their sales
incentives. However, according to the survey, best-in-class companies
are turning this around through incentive compensation management (ICM)
technology and simplified plan design – streamlining administrative
processes, decreasing error rates, and increasing sales force trust."

Standing Apart from the Competition with ICM Technology

ICM is the foundation of sales performance management (SPM) and has the
highest payback for businesses. By automating audit checks and errors,
ICM technology allows organizations to quickly investigate and correct
calculation discrepancies. Moreover, by linking reward and behavior,
real-time ICM processes generate trust and motivate team behaviors that
are aligned with corporate goals.

The new survey findings show how ICM technology drives value through
shorter payout cycles, increased accuracy and improved workflow
efficiencies. Specifically, the survey found that:

  • 71% of organizations using ICM technology complete payouts in less
    than three weeks – 20% higher than those organizations using
    spreadsheets or homegrown solutions
  • Organizations using automated ICM technology have up to 3x higher
    efficiencies than organizations using manual processes
  • Companies with automated ICM processes improve the visibility and
    timeliness of compensation reporting with daily or near real-time data
    - compared with just six percent of organizations administering
    compensation manually

See Xactly at Spotlight on Sales Compensation 2018

Xactly will be sharing the complete findings this week at the
WorldatWork Spotlight on Sales Compensation 2018 conference in Chicago.
Attendees can stop by Xactly booth #15 to get a complimentary copy of
the Executive Guide highlighting additional findings. Organizations can
also request a copy here.

Survey Methodology

Conducted by Xactly and OpenSymmetry in May and June 2018, this year's
Sales Compensation Best Practices Survey polled more than 200 companies
across all major industries, including a third with revenue larger than
$1 Billion.

About OpenSymmetry

OpenSymmetry is a global consulting company that specializes in the
planning, implementation, and management of sales performance management
solutions supported by the industry's leading technology
suppliers. Since 2004, OpenSymmetry has enabled over 1,100 customers,
ranging in size and industry, to achieve greater operational efficiency
and get better sales results. OpenSymmetry is headquartered in Austin,
Texas, with offices in London, Chennai, and Pune. To learn more, visit

About Xactly

Xactly delivers a scalable, cloud based enterprise platform for planning
and incenting sales organizations, including sales quota and territory
planning, incentive compensation management, and predictive analytics.
Using this powerful sales performance management (SPM) portfolio,
customers mitigate risk, accelerate sales performance, and increase
business agility. Combined with Xactly Insights, the industry's only
empirical big data platform, Xactly empowers companies with real-time
compensation insights and benchmarking data that maximize the bottom
line. With an open, standards-based architecture, Xactly seamlessly
integrates within an enterprise's existing infrastructure, with the
ability to work with any ERP, CRM, or HCM application, while meeting the
highest enterprise standards in security, reliability, and privacy.

To learn more about Xactly and the latest issues and trends in SPM
software, follow us on TwitterFacebook,
and the Xactly

©2018 Xactly Corporation. All rights reserved. Xactly, Xactly Insights,
the Xactly logo, and "Inspire Performance" are registered trademarks or
trademarks of Xactly Corporation in the United States and/or other
countries. All other trademarks are the property of their respective
owners. Salesforce and others are among the trademarks of, Inc.

View Comments and Join the Discussion!