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Long-term incentive compensation (LTIC) is a performance-based reward system designed to motivate sales representatives to achieve sustained organizational goals over an extended period, typically beyond one year. It aligns employee interests with those of the company, driving performance and fostering loyalty. LTIC is often used for sales reps and senior executives to encourage long-term success and accountability.
LTIC plans can take various forms, tailored to organizational needs and roles. Common types include:
Long term incentive compensation offers several advantages for sales teams, including:
Compass simplifies and optimizes the management of long-term incentive compensation plans in several ways:
At Compass, we specialize in helping businesses design and manage impactful incentive programs. Our platform is built to handle the complexities of LTIC with ease, ensuring that your organization can focus on what truly matters—driving long-term success. Let Compass empower your team to achieve sustained excellence with streamlined, transparent, and fair long term incentive compensation. Schedule a call now!
When creating long-term incentive compensation plans, organizations should focus on:
While both long term and short-term incentives (STIs) aim to motivate sales representatives, they differ in key ways:
Long term incentive compensation plans are structured based on:
These are short surveys that can be sent frequently to check what your employees think about an issue quickly. The survey comprises fewer questions (not more than 10) to get the information quickly. These can be administered at regular intervals (monthly/weekly/quarterly).
Having periodic, hour-long meetings for an informal chat with every team member is an excellent way to get a true sense of what’s happening with them. Since it is a safe and private conversation, it helps you get better details about an issue.
eNPS (employee Net Promoter score) is one of the simplest yet effective ways to assess your employee's opinion of your company. It includes one intriguing question that gauges loyalty. An example of eNPS questions include: How likely are you to recommend our company to others? Employees respond to the eNPS survey on a scale of 1-10, where 10 denotes they are ‘highly likely’ to recommend the company and 1 signifies they are ‘highly unlikely’ to recommend it.
