Human Resources Incentive Compensation Managment by 98w4iY

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									Retail industry audit program - Human resources management - Incentive compensation management

                                                                                                Done   Time     Date        Date               Checked
                                             AUDIT PROCEDURES                            Ref.    By    Spent   Expected   Finished   Remarks     By:

Objectives:

i)    to ensure incentive compensation management is effective and efficient.




31a88891-8bfd-4a8b-b7e9-da58a151d760.xls - Incentive compensaton mgt 9/30/2012 5:08 PM                                                            Page 1
Retail industry audit program - Human resources management - Incentive compensation management

                                                                                                                         Done   Time     Date        Date               Checked
                                               AUDIT PROCEDURES                                                   Ref.    By    Spent   Expected   Finished   Remarks     By:

Audit Procedures:

1.     Review of incentive compensation management

i)     Check whether the company has:
       - simplify incentive compensation plans
       - clearly measurable performance goals
       - centralized compensation planning process
       - centralized repository for incentive plans
       - formalized compensation payment process
       - provided accurate, actionable reporting to all stakeholders, from field sales to senior management

ii)    Enquire whether the company has:
        - automated compensation plan design to keep all the variables in check, and ensure a smooth roll-out
       process
        - implemented analytics to support management decision-making

iii)   Discuss with management whether the company has processes:
        - to provide the controls needed to ensure that compensation plans are motivating the desired selling
       behavior
        - with checkpoints to ensure payment accuracy
        - with organized planning cycle to address business needs

iv)    Enquire whether incentive compensation management has received adequate organizational support (e.g.
       with resources dedicated to compensation administration) to secure process control and limit exposure of
       privileged information.

v)     Check whether the company has periodically reviewed the incentive compensation management system
       and fine tuned the system, if needed.

vi)    Enquire whether the company has implemented a compensation management solution.




31a88891-8bfd-4a8b-b7e9-da58a151d760.xls - Incentive compensaton mgt 9/30/2012 5:08 PM                                                                                     Page 2
Retail industry audit program - Human resources management - Incentive compensation management

                                                                                                            Done   Time     Date        Date               Checked
                                          AUDIT PROCEDURES                                           Ref.    By    Spent   Expected   Finished   Remarks     By:

2.    Measure effectiveness of incentive compensation management

i)    Discuss with management whether incentive compensation management generated:
      - improve plan alignment with strategic goals
      - improve payment accuracy
      - improve sales force annual turnover
      - improve sales force non-selling time

ii)   Check with management whether by adopting incentive compensation management, the company has
      achieved year-over-year improvement in sales quota achievement.




31a88891-8bfd-4a8b-b7e9-da58a151d760.xls - Incentive compensaton mgt 9/30/2012 5:08 PM                                                                        Page 3

								
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