How Do IT Giants Like Infosys and TCS Structure Their Incentive Plans? Seeking Insights!

We are in the process of developing an incentive plan for our employees. We are an IT company, as you know. I would appreciate it if you could help me with the incentive plan and its mechanics as practiced in our industry segment. We are focusing on a) Frontline, b) Middle management, and senior management. I would be obliged. How do they do it in companies like Infosys, Satyam, TCS, etc.? Can anyone send me details, please? Illustrating the KPIs and incentive plan working.

Hi Mustafa,

I am also in the process of developing an incentive plan. If you have developed anything, could you give me a framework or example of the plan?

Thanks for the help in advance.

Hi, I am also in the process of developing an incentive plan. If you have developed anything, could you give me a framework or example of the plan? Thanks for the help in advance.

Mustafa

I am from the Retail Healthcare Industry. My issue is to uniformly divide the incentive among the staff who are involved in both service and product sales.

I request your help in preparing a matrix where the incentive can be planned out gondola-wise or brand-wise. The sales target of a particular brand or gondola would be assigned to one counselor, and then based on sales, the incentive would be measured accordingly.

If there is a formula for calculating incentives monthly or quarterly, please let me know.

Thanks,
Rekha

Commission Structure for Incentive Plan

The best way to establish a commission structure is to break it into various parts and create an automatic system in Excel or any other small application.

1. Commission should be based on the gross profit/profit of the assignment.
2. Each business incurs stationary and utility expenses (telephone, electricity) daily. Before calculating the commission, there should be an allocation for these small expenses specific to the business, such as a 10% management fee.
3. The remaining value would be 90%, which should be used for commission.
4. Furthermore, the commission should be separate for sales leads, such as 10% (effectively 9%). This clarity is crucial, especially in the UAE market, so that the commission structure is transparent, and whoever brings the business (employee/outsider) will receive 10% after the management fee.
5. The person responsible for or in charge of the completion of work (e.g., software development, software implementation, or other IT work) should receive a percentage, like 5% (effectively 4.5%).
6. Lastly, do not forget about the team working on the project/assignment. For instance, if three employees are working on a project, 15% should be split between them based on the time they spend on the project, the milestones they achieve, or equally (effectively 13.5%).

Therefore, the company would be paying a total of 30% but effectively 27%, which I believe is a win-win situation.

Regards,
Amad Memon