New compensation system for non-sales workers manages MBOs and can improve individual and company performance

Xactly Objectives logo

Analyst Denis Pombriant of Beagle Research last week attended CompCloud, Xactly’s annual user conference, and wrote about the newly announced Xactly Objectives in his blog. He called it a new product “that will have significant ramifications for many markets.”

Objectives will manage incentive pay for non-sales employees. With MBOs today, “Too often their users fail to clearly communicate to employees what the objectives are and at the end of a reporting period people receive bonuses for seemingly inexplicable reasons,” Pombriant wrote. “The problem with that is the bonus becomes a reward tied to nearly nothing rather than an incentive to do better.  None of this helps drive correct behavior, which, after all, is one of the key reasons for having incentives in the first place.”

See Pombriant’s complete post.

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