Managing incentive compensation plans can eat up a tremendous amount of a mortgage finance team’s time and resources, especially when using “the spreadsheet method.” Coupling automation with a few best practices significantly reduces the amount of time, complexity, and frustration (for both payroll teams and employees) comp plan management can take. Here are five easy ways you can improve the effectiveness of your incentive comp plan management this year:
1. Make Comp Calculations Transparent.
Spell out compensation plans and make it visible to employees. Clearly showing and explaining how compensation is being calculated improves employee trust and keeps them motivated because they know what they need to do to earn their desired compensation.
Did You Know? CompenSafe’s Compensation Schedules outline all the variables and scenarios for comp plans, making it easy for employees to understand how their commission, bonus, or override is calculated for each loan they close.
2. Digitize Your Comp Agreements.
Keep your employment and compensation agreements stored and documented digitally. This makes it easy to access comp plans at a moment’s notice and helps keep you on the right side of regulatory requirements.
Did You Know? CompenSafe includes document storage for compensation agreements, employment agreements, bonus plans, and more – all of which are available at any time for the employee and management.
3. Continually Monitor Your Comp Plans.
You can’t manage what you can’t measure, and that includes comp plan effectiveness. By evaluating and monitoring your compensation plans on a consistent basis, you can make sure they’re having the desired results and fine-tune them as needed to properly incentivize your staff while keeping your bottom line healthy.
Did You Know? CompenSafe includes over 100 out-of-the-box reports, allowing you to continuously assess the effectiveness of your incentive plans and easily make adjustments where necessary.
4. Make Comp Plan Design a Turnkey Process.
You shouldn’t have to re-invent the wheel each time you need to build a comp plan. Automating comp plan management should also give you the ability to create and implement incentive comp plans for new hires, new branches, and new acquisitions with minimal effort.
Did You Know? CompenSafe integrates with your LOS so all new employees are automatically added, and all Compensation Schedules, Override Schedules, and Draws can be cloned and customized for easy assignment to new employees – making the new hire on-boarding process that much easier.
5. Don’t Leave Money on the Table.
Guaranteed salaries for new hires and recoverable draw advances are becoming standard operating procedure for mortgage companies. However, recovering those funds from earned commissions can be tricky, especially when spreadsheets are involved, and if the process is mismanaged, it can significantly hurt your bottom line. Set up auto draws so that draw balances are recovered from employees’ compensation as soon as their earned compensation is eligible for recapture.
Did You Know? You can set up your comp plans within CompenSafe to automatically track draws and account for guaranteed minimums alongside commission calculations so that these funds are recouped as soon as possible.
By making these five changes, you can dramatically improve the efficiency and effectiveness of your incentive comp plan management process. If you’re ready to put these changes into action alongside an automated compensation platform, then you’re in the right place. Contact us today to learn more about how CompenSafe will help you maximize your return on individual.