BENGALURU: Infosys sales force is expected to witness a great time ahead, as the company has planned to reward its sales superstars with a new incentive structure, reports ET. Infosys at present is considered as India’s second largest software services and thus to reach the top position along with more outsourcing deals, the company has decided to reward it s best salesmen.

The plan is to change the incentive structure in order to link compensation directly to incremental revenue generated, revealed two close sources. “Infosys wants to reward and incentivize its sales people disproportionately, especially the ones that bring in large deals and help the company get more out of existing large customers, Infy wants to link incentives directly to incremental revenue generated.”

Infosys have generated a great amount of incremental revenue in a particular period and that led it to the strength and ability to win new contracts.

Till now the company’s policy was to reward its employees on the basis of the company’s performance and growth. If the company performs well and runs in profit, then the entire sales force will be rewarded regardless of the candidate’s individual performance. But if the candidate’s performance is extraordinary and that of the company is low, then he won’t get 100 percent of his variable pay. This policy was beneficent as well as lacking as the incentives depended upon the company or businesses performance.

Many other IT sector services believe in the strategy to link incentives to incremental revenue. Vineet Nayar, former CEO of HCL Technologies and founder of Sampark Foundation said, “At the end of day, the 5,000-odd sales guys of a top-5 company have the capability of making or breaking the company. And most top companies make a lot of common mistakes when handing out incentives to these guys—the most common is a 'one size-fits-all' approach where everyone gets the same incentives.”

He further added that, “Most incentives are meant to compensate people rather than to drive a certain type of behavior—and that is wrong. It should be the other way round, where incentives drive a certain type of behavior and makes people pull up their socks.”

Giving a different perspective on this policy, Nayar said, “Linking incentives to incremental revenue growth is also wrong—ideally it should be linked to gross margins, as that would force sales guys to structure deals more efficiently.”

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