Use this program to create, edit, and delete option sales goals for employees. Sales incentive records can have up to three tiers, but only the first tier is required. Each tier is composed of a minimum "target" and an incentive payment rate.
These goals or "targets" specify a volume of sales for various options that can be expressed as any of the following:
Examples of targets for employees are:
$1.00 per sales dayB. when reaching a target of 50 % for LDW sales, incentive pay could be one of the following:
$5.00 per RA
10% of the agent's LDW revenue
$1.25 per sales day
$7.00 per RA
12% of the agent's LDW revenue
Each tier is set up with a type of target and a type of incentive calculation but can vary between tiers. For example, the level 1 target can stipulate a per sale incentive while the level 2 target can stipulate a percentage incentive. Here's an example:
Reaching a target of 20 sales of LDW for the month earns an incentive of $2.00 per sale
Reaching a target of 40 percent for LDW sales has an incentive of 10% of the LDW revenue
CALCULATING THE INCENTIVE PAY
Once these goals are set, use the program Update Revenue Incentives (as often as desired) to calculate the incentive pay earned by employees.
REPORTS FOR INCENTIVE PAY
There are two reports for incentives earned:
The Revenue Incentive Report is designed for use by management to report the progress of all employees in reaching the "targets". It also reports the incentive pay earned for the month by all of employees. It can report the comparison of this month to last month.
The Individual Revenue Incentive Report is designed for employees so that they can monitor their own progress. It can be run only for the employee logged in.
User tip: To obtain a print out of reports in this field, use the program Print Employee Incentive Records.
To access the program, type EDITINCN (RET) at any menu "OPTION:" field or the appropriate number on the Incentives Sub-Menu of the Month End Menu. The screen will then display:
| OPTION: EDIT EMPLOYEE INCENTIVES 1 Location 2 Employee 3 Option 4 Eff Date 5 Term Date 6 Target Pct 1 18 Target Pct 3 7 Target Amt 1 19 Target Amt 3 8 Target Num 1 20 Target Num 3 9 Per Day 1 21 Per Day 3 10 Per Transaction 1 22 Per Transaction 3 11 Pct 1 23 Pct 3 12 Target Pct 2 13 Target Amt 2 Create Date 14 Target Num 2 Create Empl 15 Per Day 2 Mod Date 16 Per Transaction 2 Mod Empl 17 Pct 2 24 Daily Target Amt 25 Daily Target Num 1SAVE 2NEXT 3ERASE 4DELETE 5BACKUP 6 7HELP 8 |
Enter data as follows:
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1. LOCATION |
For the opening location of RAs, enter one of the following: Up to 6 alphanumeric characters to select a single location. A Group Name representing several locations (see the Chapter Edit Group Names for a discussion on location groups). Remember, the first character of a Group Name is the plus sign "+" and this MUST be a group that DOES NOT have a Type Code in it's second field (nor should any of it's sub-groups be assigned a Type Code). Press (RET) to include all locations. EXAMPLE: Type TUS (RET) |
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2. EMPLOYEE |
To limit the incentive target to one employee, enter up to 6 alphanumeric characters representing the User Access Code for the employee. Otherwise, press (RET) to leave this field blank and include all employees. EXAMPLE: Press (RET) |
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3. OPTION |
Enter up to 5 alphanumeric characters representing the Option Code or the special Code "SRPD" (see the discussion at the end of this chapter on incentives based on Sold Revenue Per Day "SRPD") for this incentive record. This is a required field. EXAMPLE: Type LDW (RET) User tip: To report on prepaid fuel, enter "FUEL" as the option. It tracks prepaid fuel only. User tip: A field in the Edit Misc Control Fields record can be set to allow for upsells on walk up rentals when yield managed rates are used. Based on utilization, the system selects which level of the yield managed rate should be in effect. If the rental agent upsells to a higher level, the difference in revenue is tracked and reported on the Extra Revenue reports under the code "YIELD". To select this item for an incentive record, use the code "YIELD". User tip: One of the choices on the Extra Revenue Report is "Walk Rt". When selected, it reports the RAs that were walk ups (no reservation) that used the location's default rate code from the Location file. To select this item for an incentive record, use the code "WLKRT". |
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4. EFF DATE |
Using your selected date format, enter the effective date for this incentive record.This is a required field. EXAMPLE: Type 070107 (RET) |
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5. TERM DATE |
Using your selected date format, enter a termination date if applicable. EXAMPLE: Press (RET) |
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User tip: The next three fields are used to set the level 1 target. Enter data in only ONE of the following three fields. |
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6. TARGET PCT 1 |
If the level 1 target is a percentage, enter the percentage here.Otherwise, skip this field. EXAMPLE: Type 30% (RET) |
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7. TARGET AMT 1 |
If the level 1 target is a monetary amount, enter the amount.Otherwise, skip this field. EXAMPLE: Press (RET) |
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8. TARGET NUM 1 |
If the level 1 target is a number of transactions, enter the amount.Otherwise, skip this field. EXAMPLE: Press (RET) |
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User tip: The next three fields are used to specify the method that will be used to calculate the incentive pay. Enter data in only ONE of the following three fields. |
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9. PER DAY 1 |
If the level 1 incentive is a per day amount for each day the option was charged, enter the monetary amount. Otherwise, skip this field. EXAMPLE: Press (RET) |
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10. PER TRANS-ACTION 1 |
If the level 1 incentive is a per transaction amount for time the option was sold, enter the monetary amount. Otherwise, skip this field. EXAMPLE: Press( RET) |
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11. PCT 1 |
If the level 1 incentive is a percentage of the option's revenue, enter the percentage. Otherwise, skip this field. EXAMPLE:T ype 7 (RET) |
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If there is only one level, press (ESC) to return to the "OPTION" field and press F1 to save the record. If there is more than one target and incentive level, use the next 6 fields to define level 2. |
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| 12. TARGET PCT 2 |
If the level 2 target is a percentage, enter the percentage here. Otherwise, skip this field. EXAMPLE: Type 40% (RET) |
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13. TARGET AMT 2 |
If the level 2 target is a monetary amount, enter the amount. Otherwise, skip this field. EXAMPLE: Press (RET) |
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14.TARGET NUM 2 |
If the level 2 target is a number of transactions, enter the amount. Otherwise, skip this field. EXAMPLE: Press( RET) |
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15. PER DAY 2 |
If the level 2 incentive is a per day amount for each day the option was charged, enter the monetary amount. Otherwise, skip this field. EXAMPLE: Press (RET) |
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16. PER TRANS-ACTION 2 |
If the level 2 incentive is a per transaction amount for time the option was sold, enter the monetary amount. Otherwise, skip this field. EXAMPLE: Press (RET) |
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17. PCT 2 |
If the level 2 incentive is a percentage of the option's revenue, enter the percentage. Otherwise, skip this field. EXAMPLE: Type 7 (RET) |
| FIELDS 18 - 23 |
If this record has a level 3 target, use these 6 fields to define it. |
| 24. DAILY TARGET AMT |
This field is used for setting a daily amount (currency amount) target for use with Today's Option Sales Report which track each employee's progress in reaching daily option sales
targets. EXAMPLE: Type 100 (RET) |
| 25. DAILY TARGET NUMBER |
This field is used for setting a daily number target (number of transactions) for use with the Today's Option Sales Report which track each employee's progress in reaching daily option sales
targets. EXAMPLE: Type 100 (RET) |
PRESS "F1" AT "OPTION:" TO SAVE THE RECORD.
Some examples of incentive records along with comments are shown below.
EXAMPLE 1:
| OPTION: __ EDIT EMPLOYEE INCENTIVES 1 Location 2 Employee 3 Option LDW 4 Eff Date 07-01-07 5 Term Date 6 Target Pct 1 20 18 Target Pct 3 50 7 Target Amt 1 19 Target Amt 3 8 Target Num 1 20 Target Num 3 9 Per Day 1 1.00 21 Per Day 3 1.50 10 Per Transaction 1 22 Per Transaction 3 11 Pct 1 23 Pct 3 12 Target Pct 2 35 13 Target Amt 2 Create Date 14 Target Num 2 Create Empl 15 Per Day 2 1.25 Mod Date 16 Per Transaction 2 Mod Empl 17 Pct 2 24 Daily Target Amt 25 Daily Target Num 1SAVE 2NEXT 3ERASE 4DELETE 5BACKUP 6 7HELP 8 |
Observations about Example 1:
This incentive for LDW has 3 levels based on a target percentage.
Agents who sell LDW on less than 20% of their rentals do not qualify for an incentive.
Agents who sell LDW on 20% to 34% of their RAs earn $1.00 per LDW day charged on their RAs.
Agents who sell LDW on 35% to 49% of their RAs earn $1.25 per LDW day charged on their RAs.
Agents who sell LDW on 50% or more of their RAs earn $1.50 per LDW day charged on their RAs.
EXAMPLE 2:
| OPTION: __ EDIT EMPLOYEE INCENTIVES 1 Location 2 Employee 3 Option UPGRD 4 Eff Date 07-01-07 5 Term Date 07-31-07 6 Target Pct 1 18 Target Pct 3 7 Target Amt 1 300.00 19 Target Amt 3 1500.00 8 Target Num 1 20 Target Num 3 9 Per Day 1 21 Per Day 3 10 Per Transaction 1 22 Per Transaction 3 11 Pct 1 5.00 23 Pct 3 15.00 12 Target Pct 2 13 Target Amt 2 750.00 Create Date 14 Target Num 2 Create Empl 15 Per Day 2 Mod Date 16 Per Transaction 2 Mod Empl 17 Pct 2 10.00 24 Daily Target Amt 25 Daily Target Num 1SAVE 2NEXT 3ERASE 4DELETE 5BACKUP 6 7HELP 8 |
Observations about Example 2:
This incentive for upgrades is in effect for July only.
The rental agent must have at least $300 in upgrade revenue before qualifying for incentive pay.
The percent earned increases as the upgrade revenue increases:
5% earned if upgrade revenue is between $500 and $749
10% earned if upgrade revenue is between $750 and $1499
15% earned if upgrade revenue is $1500 or more
EXAMPLE 3:
| OPTION: __ EDIT EMPLOYEE INCENTIVES 1 Location TUS 2 Employee 3 Option PAI 4 Eff Date 07-01-07 5 Term Date 6 Target Pct 1 18 Target Pct 3 7 Target Amt 1 19 Target Amt 3 8 Target Num 1 1 20 Target Num 3 9 Per Day 1 21 Per Day 3 10 Per Transaction 1 1.00 22 Per Transaction 3 11 Pct 1 23 Pct 3 12 Target Pct 2 13 Target Amt 2 Create Date 14 Target Num 2 Create Empl 15 Per Day 2 Mod Date 16 Per Transaction 2 Mod Empl 17 Pct 2 24 Daily Target Amt 25 Daily Target Num 1SAVE 2NEXT 3ERASE 4DELETE 5BACKUP 6 7HELP 8 |
This incentive for PAI sales is for the Tustin (TUS) location.
$1 is paid for each sale of PAI regardless of how many time PAI is sold.
Every sale qualifies starting with the first one (level 1 target is "1" transaction)
EXAMPLE 4:
| OPTION: __ EDIT EMPLOYEE INCENTIVES 1 Location 2 Employee 3 Option SLI 4 Eff Date 07-01-07 5 Term Date 6 Target Pct 1 18 Target Pct 3 7 Target Amt 1 19 Target Amt 3 8 Target Num 1 20 Target Num 3 9 Per Day 1 21 Per Day 3 10 Per Transaction 1 1.00 22 Per Transaction 3 11 Pct 1 23 Pct 3 12 Target Pct 2 20 13 Target Amt 2 Create Date 14 Target Num 2 Create Empl 15 Per Day 2 Mod Date 16 Per Transaction 2 Mod Empl 17 Pct 2 10 24 Daily Target Amt 25 Daily Target Num 1SAVE 2NEXT 3ERASE 4DELETE 5BACKUP 6 7HELP 8 |
Observations about Example 4:
This incentive for SLI offers the following:
The agent earns $1.00 for each sale of SLI up to the point of the 20% sales level.
If the agent reaches the 20% level, the incentive is then 10% of all their SLI revenue.
USING OPTION SETS INCENTIVES (Sold Revenue Per Day)
Instead of tracking incentives based on each individual option, incentives can be calculated on the total average additional daily revenue sold. For example, if LDW is sold at $10.00/day, PAI is sold at $5.00/day and SLI is sold at $7.00/day, if all three were sold that would be $22.00 per day of additional revenue. If an employee opened two RAs each for 5 days and sold all three coverages, his average sold revenue per day (SRPD) would be $22.00. But if he sold all three on just one but none on the other, his SRPD would be $11.00. Incentives can be calculated on this average daily revenue of all sold items. The following notes describe how to set up incentives in this method.
1. Set up an Option Set that contains all of the Options whose revenue is to be incentivized in this manner.
2. Place the Option Set defined in Step 1 above into Field 12 in the Edit Incentive Control Record.
3. DO NOT set up any records in this Edit Employee Incentives file for the individual options that are included in the Option Set. To do so will result in incentives being calculated more than once on the same sale.
4. In Field 3, enter the Code "SRPD" (this is the reserved Code for Incentives of this nature, therefore you can only have one set of Options incentivized this way).
5. Incentives of this nature can only be done with Target Amounts (Fields 7, 13 and 19). Enter into these fields the average daily revenue targets that are desired.
6. Incentives of this type can only be rewarded on a percentage basis (Fields 9, 17 and 23).
EXAMPLE 5:
| OPTION: __ EDIT EMPLOYEE INCENTIVES 1 Location 2 Employee 3 Option SRPD 4 Eff Date 07-01-07 5 Term Date 6 Target Pct 1 18 Target Pct 3 7 Target Amt 1 10.00 19 Target Amt 3 20.00 8 Target Num 1 20 Target Num 3 9 Per Day 1 21 Per Day 3 10 Per Transaction 1 22 Per Transaction 3 11 Pct 1 2.00 23 Pct 3 10.00 12 Target Pct 2 13 Target Amt 2 15.00 Create Date 14 Target Num 2 Create Empl 15 Per Day 2 Mod Date 16 Per Transaction 2 Mod Empl 17 Pct 2 5.00 24 Daily Target Amt 25 Daily Target Num 1SAVE 2NEXT 3ERASE 4DELETE 5BACKUP 6 7HELP 8 |
Observations about Example 5:
This incentive for Sold Revenue Per Day "SRPD" (in keeping with the example above, the Option Set for SRPD includes LDW, PAI and SLI).
The agent earns 2% of all LDW, PAI and SLI revenue if the calculated average daily revenue from these three options exceeds $10.00/day.
If the SRPD exceeds $15.00/day, his incentive is 5% of the total LDW, PAI and SLI revenue.
If the SRPD exceeds $20.00/day, his incentive is 10%.