Overcoming Commission Management Challenges (in Finance and Operations)

04 Dec, 2023

Don’t you agree that commission management can sometimes feel challenging and confusing? In this blog post, let’s embark on an intriguing journey into the world of commission management, where we’ll uncover the challenges faced by Finance and Operations teams. We’ll shine a light on those pain points, bottlenecks, and inefficiencies that often make our lives more complicated than necessary. Let’s explore how to make the commission payout process accurate, timely, and downright efficient. Ready? Let’s take a look at 5 of the most common challenges.

Challenge 1: reducing manual work

Managing commissions through spreadsheets is a difficult task, especially for a company dealing with a large and diverse salesforce. The complexity of different roles, varied payment structures and currencies, and a sophisticated compensation plan results in a considerable burden for Finance and Operations teams.

Even while the team that calculates those commissions maintains a relatively low error rate, there’s a hidden cost - the time spent ensuring accurate commission payments could be better invested in revenue-generating activities.

Challenge 2: creating a single source of truth

Another hurdle we’ve all encountered at some point is the complexity of creating a single source of truth for commission management. Don’t you agree that your commission calculating team’s reliance on multiple spreadsheets and source files can make data management extremely complex?

These files work as a menu for different people, but because they’re not well-connected or automated, it leads to a mess of repeating information and inefficiency. Data gets copied across documents, making it confusing. The solution is to have one central place where all the information is connected.

Challenge 3: improving communication channels

The frustration that comes with manual interventions and disconnected systems in commission management is real. It’s like your company speaks different languages within its own walls. The resulting communication bottlenecks, inefficiencies, and endless back-and-forth exchanges are super common and need to be improved. In this digital age, streamlining processes and enhancing communication channels have become essential. It’s time to bridge the gaps and make your commission management system sing in harmony.

Challenge 4: providing real-time access to commissions

Your sales representatives are constantly left in the dark, eagerly awaiting their commission data. The current process involving downloading and sharing reports can be a real productivity roadblock. The lack of transparency and control over sales reps’ commissions can lead to demotivation and mistrust among your dedicated employees. Therefore, real-time access to commissions is much needed.

Challenge 5: tracking changes in commissions and target settings

The absence of tracking changes in sales commissions and target settings can turn into a regulatory nightmare. Without clear records of adjustments, your company risks a dance with non-compliance with regulations and internal policies. The consequences could be as serious as a financial snowstorm or a legal crisis. That’s obviously not what you want, and therefore it’s essential to keep a close eye on changes in commissions and target settings.

The objective

The objective is crystal clear: Dolfin is a commission management tool that’s on a mission to untangle the web of commission management challenges. The primary goals are to save time, supercharge growth, keep your employees happy and motivated, and ensure compliance as a rule-abiding scout would.

The approach

Dolfin’s approach to conquering these challenges is nothing short of comprehensive and designed to make your commission management experience a breeze:

Integration: seamlessly connect your data sources, waving goodbye to the days of manual data imports and exports.
Flow Builder: empowers administrators to create customized logic flows, replacing traditional spreadsheets and allowing for automation without any coding knowledge – a true game-changer.
Platform: a centralized platform that simplifies your user experience. It’s your one-stop shop, offering quick access to all the essential features and tools you need. Think of it as your commission command center.
Access-Role Levels: customize roles, permissions, and access rights, ensuring that each team member has just the right level of access and control.
Collaboration Capabilities: enjoy smooth collaboration with features like approval flows, notification management systems, and rep target approvals. It’s like having a dedicated communication hub to keep everyone on the same page and transparent.
Motivation Capabilities: to keep your sales teams fired up, the platform offers user views, what-if scenarios, commission tracers, and personal target setting.

With Dolfin’s approach, you’re ready to transform your commission management from a challenge into a smooth and efficient journey. Let’s simplify your commission world and pave the way for success!

How Dolfin works

Simply put, Dolfin offers a comprehensive approach:

Sync your data sources: linking data sources seamlessly with modern integrations, eliminating the need for importing and exporting files.
Setup the calculation logic: providing a user-friendly, no-code logic-based interface to set up commission calculations and update them as needed.
Generate real-time statements: sales representatives can instantly access their earnings, keeping them motivated and informed.
Handle exceptions and overwrites: efficient collaboration, allowing for overwrites when necessary, ensuring flexibility in handling exceptions.
Validate commissions on time: a thorough check process involving multiple stakeholders to ensure accurate and timely payouts.

Conclusion

The impact of Dolfin is aimed at making the commission management process more efficient, transparent, and motivating. The comprehensive approach addresses the identified challenges, resulting in improved reporting, compliance, and trust. It streamlines the month-end close process, reduces errors, and maintains clean record-keeping. With the solution, your company is poised to take commission management to a new level, ultimately driving growth and ensuring a satisfied and motivated sales force.