1. Introduction


In the retail marketing industry, to boost the sales, incentives have become an integral part of the value chain. The performance of an employee is directly linked with the sales targets achieved by him. To suitably reward the sales target achievement, clients incentivise their employees. Channelplay recognizes this spirit and has incorporated the same in its policy.

In order to timely and accurately distribute the incentives, this process note lays down the step-by-step incentive approval and payment process for all the project employees.


2. Incentives


Incentives are calculated as per the percentage of the sales targets achieved by an employee. Each client has different incentive schemes and different methods for calculation of the incentives. These schemes are communicated to the project employees by their Reporting Managers on behalf of the client.


Incentives are generally paid on monthly basis to the project employees. However, some companies have quarterly incentive schemes also. As per the law Incentives are treated as earnings of an employee and are invariably paid with the salary. Incentives for the completed month are paid along with the next month’s salary. Income tax and ESI contribution is applicable on the incentives received by the employee as per the employee’s applicability.


3. Approval Process by Project Team


The data for calculation of the incentives is prepared by the Project Team based on the sales figures and the KPIs achieved. This data is then shared with the client by the PM. In case the client has a query or need some additional input, the same is clarified/provided by the PM. This process is generally completed by 20th of the month for the previous month or the previous quarter. PM is responsible for taking the final approval of the incentives from the client. Before taking clients approval PM is required to ensure that:

       

        a. All the project employees (both active and inactive) are included in the incentive sheet and no employee has been left out                         without proper justification.

        b. The final approval mail from the client should have the total approved incentive amount in the mail body in addition to the                      attached excel sheet. This is essential for accuracy. 


The final approval mail with the approved amount mentioned in the mail body is then shared with HR team by PM by 24th of the month. In case, this date is crossed over, then the incentives shall be payable only with the next month’s salary. Such cases should also be notified to HR by 24th of the month.


4. Payment Process


     a. By HR


          The incentives sheet along with the client’s approval mail when received by the HR team, the following checks shall be carried                out:


            i. Check the headcount as per the attendance sheet of the respective month

            ii. Check the correctness of Active and Inactive status of employees 

            iii. Check the final approval mail of client and tally the incentive figures 

            iv. Report any anomalies to the PM

            v. Receive the rectified sheet, verify it

           vi. Forward the correct sheet after verification to finance along with client’s approval mail

          vii. For active employees, process approved incentives with salary payment in 1Office

         viii. For Inactive employees, process approved incentives in FFS module of ADP and forward it to Finance for payment with the                   FFS


      b. By Finance


          The finance on receiving the correct & verified incentive sheet from HR shall carry out the following:


           i. Check the final client approval mail of incentives before payment

           ii. Check all active employees’ incentives is paid with salary

          iii. Check all inactive employees’ incentives is paid with FFS

          iv. Check all intermittent exit/termination cases are paid as and when received


5. Responsibility


This document is owned by the HR department of Channelplay Limited. The HR department will issue amendments as and when necessary. The HR function would keep this document continuously updated by making necessary amendments/changes/updates as per the Management Policy.