New research from Palette, The State of Sales Compensation in 2023, sheds light on how common commission errors actually are. According to the survey, 56% of companies encounter commission errors on a regular basis. The actual percentage is likely much higher; the majority of companies we have audited have had undetected errors in their commission payouts.
These companies are spending unnecessary time each commission period fixing issues. They also report that payouts are affected and need to be adjusted, creating extra complications for finance and payroll teams, and delivering a poor experience to sales reps themselves. These companies report that errors can be hard to trace, often leading to exhausting searches through spreadsheets and different systems to try and explain why the errors occurred. These comp plan administrators spend a lot of time going back and forth with sales reps to trace and then explain the errors. Of all companies surveyed, about 9% face errors very often - can you imagine how they could better use all of that time and effort?
Commission errors are completely unnecessary, and can be eliminated with automation. Automation tools connect with all of your data sources, providing a clear record and reconciling inconsistencies between systems. They provide visibility on accruals to reps, empowering them to spot and fix errors on their end before payouts occur. Are you ready to eliminate commission errors? Get in touch to learn how we can help.