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Sales incentives are crucial for motivating salespeople and driving revenue growth. However, managing these incentives can be quite challenging.
Finance teams often face difficulties with incentive compensation management. This is mainly due to limited resources and the complexity of the task. When we look at sales performance management (SPM) as a whole, it becomes clear that we no longer need to rely on separate point solutions or numerous Excel sheets that require daily manual updates.
Modern incentive commission management solutions can automate incentive compensation, which is a vital part of SPM. Furthermore, comprehensive SPM platforms now exist to bring together all territory, quota, and incentive-related data in one place.
They also provide detailed reporting, and automation features to handle repetitive tasks for you. However, with many ICM tools out there, we will share with you 10 tools that you can rely on.
Why use incentive commission management solution?
If you are still using spreadsheets to calculate and distribute commissions, you may have experienced some common issues:
- Calculation errors can lead to disputes with sales representatives and financial losses.
- The process is time-consuming, causing delays in payments and impacting other finance tasks.
- A lack of transparency can leave sales reps unsure about their earnings, which can harm trust.
Research from Gartner shows that only 24% of sellers fully understand how their incentives are calculated when using manual methods like spreadsheets. If so, few people grasp their variable compensation, its effectiveness is questionable.
The good news is that using Incentive Compensation Management (ICM) software can greatly improve sales performance management. This software allows you to tailor incentives to meet specific needs and create effective compensation programs.
With ICM software, you can:
- Significantly enhance operational efficiency, reducing errors by up to 90% and cutting dispute resolution times by over 40%.
- Achieve substantial cost savings, with some companies reducing the time spent on compensation management by 50%.
- Motivate sellers more effectively, leading to better sales outcomes.
According to McKinsey, optimizing incentive plans can boost sales by 50% more than marketing investments. By eliminating manual processes, you not only improve compensation effectiveness but also free up your finance team to focus on more important tasks.
With many ICM software options available, how do you choose the right one? Keep reading to learn how to make an informed decision.
6 best incentive compensation management software in 2025
List of 6 best incentive compensation management software to use in 2025:
Software | G2 Rating | Features | Pricing |
Compass | 4.7/5 | Automates ICM tasks, utilizes templates for automated calculations, establishes hierarchies for earnings approval, no-code tool for designing plans, allows testing of draft plans, enables analysis of plans, adjusts to market trends | $20 USD per month |
Spiff | 4.7/5 | Customizable commission plans, document management, real-time visual commission trends, native integration for remote access | $75 per user/month, billed annually |
CaptivateIQ | 4.7/5 | Self-sufficient admin tools, real-time insights, secure tracking of commissions, manual commission adjustments | Contact sales team |
Everstage | 4.9/5 | Maximizes ROI of incentive programs, budget planning features, real-time updates on commissions and quotas, user-friendly visuals for tracking | Contact sales team |
Xactly Incent | 4.2/5 | Enhanced commission visibility, performance comparison tools, data-driven decision-making support, incorporates feedback from local sales managers | Contact Xactly Incent for pricing info |
QuotaPath | 4.7/5 | User-friendly UX, real-time performance visibility, motivational plan-building, no platform fees, easy Salesforce integration | Free trial; $30-$40/month |
1. Compass
Compass stands out as a premier solution for Incentive Compensation Management (ICM), offering a comprehensive suite of features designed to streamline processes and enhance accuracy.
Features:
- Automates ICM tasks, eliminating errors and delays in payouts.
- Utilizes templates for automated calculations, minimizing manual work.
- Establishes hierarchies for earnings approval and escalations, ensuring clear communication.
- Provides a no-code tool for designing and managing incentive compensation plans across various roles.
- Allows testing of draft plans with what-if scenario modeling.
- Enables analysis and cloning of successful compensation plans to maximize profitability.
- Offers flexibility to adjust incentive plans in response to market trends.
Why choose Compass?
- Fosters community engagement through shared best practices and team bonding.
- Replaces cumbersome email threads with an in-app dispute management system to reduce escalations.
- Collects valuable feedback from representatives via surveys on commission programs.
Pricing: $20 USD per month, offering a cost-effective solution for businesses.
G2 rating: 4.7/5, reflecting high user satisfaction and reliability.
2. Spiff
Spiff is a commission management tool that automates calculations and enhances visibility into employee performance, fostering trust across the organization.
Features:
- Customizable commission plans with complex changes.
- Document management for contracts and signatures.
- Real-time visual commission trends for reps.
- Native integration for remote access to commissions.
Why choose Spiff?
Spiff simplifies commission tracking with a user-friendly interface, providing real-time visibility and easy adjustments to compensation plans, ensuring transparency and motivation among sales teams.
Pricing: $75 per user/month, billed annually18.
G2 rating: 4.7/5
3. CaptivateIQ
CaptivateIQ is a versatile commission solution that enables organizations to run effective incentive compensation programs with ease.
Features:
- Self-sufficient admin tools for quick compensation plan adjustments.
- Real-time insights for informed decision-making.
- Secure tracking of commissions and sales rep experiences.
- Manual commission adjustments for sales management.
Why choose CaptivateIQ?
CaptivateIQ offers a transparent and automated approach to compensation management, making it easy to track earnings and quota attainment goals through an intuitive interface.
Pricing: Contact the sales team for details.
G2 Rating: 4.7/5
4. Everstage
Everstage provides an intelligent sales commission experience designed for rapid scaling, focusing on gamified incentives and performance visibility.
Features:
- Maximizes ROI of incentive programs.
- Budget planning features included.
- Real-time updates on commissions and quotas.
- User-friendly visuals for tracking achievements.
Why choose Everstage?
Everstage simplifies the complexity of sales commissions with an easy-to-use dashboard, enabling effective tracking of growth and performance while motivating sales teams through gamification.
Pricing: Contact the sales team for pricing details.
G2 rating: 4.9/5
5. Xactly Incent
Xactly Incent allows businesses to design, automate, and manage incentive compensation efficiently while aligning seller behavior with revenue goals.
Features:
- Enhanced commission visibility and integration capabilities.
- Performance comparison tools for reps.
- Data-driven decision-making support.
- Incorporates feedback from local sales managers.
Why choose Xactly Incent?
Xactly Incent streamlines plan administration, reduces time spent on calculations, and promotes higher quota attainment through its robust analytics and reporting functionalities.
Pricing: Contact Xactly Incent for current pricing information.
G2 rating: 4.2/5
6. Quotapath
QuotaPath is a commission tracking system that simplifies variable pay management for scaling revenue teams, offering real-time visibility into commissions.
Features:
- User-friendly UX for quick adjustments to sales compensation.
- Real-time performance visibility across teams.
- Motivational plan-building aligned with business objectives.
- No platform fees and easy Salesforce integration.
Why choose QuotaPath?
QuotaPath's straightforward setup process and effective customer support make it an ideal choice for managing sales compensation without complications, enhancing team motivation and performance tracking.
Pricing: Free trial available; $30/month for startups, $40/month to scale
G2 rating: 4.7/5
Conclusion
The world of incentive compensation management has witnessed significant advancement with various edgy software. This blog post explored 20 best incentive compensation management software options available which highlights the features and benefits.
These platforms have revolutionized the incentive compensation management and optimize the compensation plans and processes that boost better performance.
FAQs
1. Which sales incentive program is most widely used?
The most widely used sales incentive program is the commission-based model, where salespeople earn a percentage of each sale they make. Other popular programs include bonuses, SPIFs (Sales Performance Incentive Funds), and tiered incentives.
2. What is the most common type of incentive system?
The monetary incentive system is the most common, including commissions, bonuses, and profit-sharing. However, non-monetary incentives like recognition, career development, and extra time off are also widely used.
3. What is incentive management software?
Incentive management software automates the design, tracking, and administration of incentive programs, ensuring accurate payouts, transparency, and real-time performance tracking for employees and sales teams.
4. What is EPC software?
EPC (Enterprise Performance Management) software helps organizations plan, analyze, and optimize business performance, often including budgeting, forecasting, and financial consolidation.
5. How to structure a management incentive plan?
A management incentive plan should:
- Align with business goals
- Set clear performance metrics
- Offer a mix of short-term (bonuses) and long-term (equity, profit-sharing) rewards
- Ensure fairness and transparency
- Be regularly reviewed for effectiveness
