Curious About BPO Incentives: How Do You Reward Business Development Success?

biisu
Our company recently ventured into BPO services, and I have procured a new process from a client (XYZ). The billing is monthly, let's say Rs. 100,000.

Incentive Structure Inquiry

1. What is the average incentive structure for a Business Development Officer?
2. If, say, after 6 months or 1 year down the line, I get another project from the same client, will I get an incentive for that project?

Regards,
JB
saswatabanerjee
What is your position? Are you on the business development team? If so, the incentive structure and rules should be clearly specified in your appointment letter. If nothing is specified, that means you have no incentives.
biisu
I am in BD. This is the first project that I have procured, and my MD wants me to prepare an incentive structure for myself and henceforth. The only instruction the management has given me is "As per Industry Standard." So, I want to know what the industry standard is for BPO backend NON Voice projects.
saswatabanerjee
Yes, I was looking it up. I can't find any standard package for incentives. Spoke to my friends in the industry also. The incentive rates vary widely. It depends on the value of orders, the difficulty in getting it, and the base salary. Generally, if the orders are of a decent size, the incentives would be 1-2% of the estimated value, going down to 1/4% also. Again, some give a lump sum, some give based on collection (never on billing). In the case of smaller firms where the order size is smaller and the margins are wider, the incentives are higher.

In most cases, follow-up orders' incentive will go to the team that is handling the client (or to the accounts executive managing/interacting with the client). But there are no fixed norms there either. It depends on the structure.

Some of the companies have incentives split between the sales and the services teams because without both teams doing well, it can't be successfully completed.

I also found a company that is working on a commission pool. The incentives are pooled and distributed between the entire sales team based on their salary, like a bonus at the end of the year. Again, most companies give a bonus after base targets are met. If the sales targets are not met, no incentive is given at all.

So I guess the end result is: there is no industry standard practice. You make a plan that is fair to the company and attractive to you and place it before the company. Remember that the company must make at least 15 times your earnings to make it worthwhile employing you in sales (that's another benchmark).
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