Why-it-is-High-Time-You-Stopped-Using-Excel-Sheets-for-Incentive-Calculations

Why it is High Time You Stopped Using Excel Sheets for Incentive Calculations

by Sales Incentives

Why it is High Time You Stopped Using Excel Sheets for Incentive Calculations

Why it is High Time You Stopped Using Excel Sheets for Incentive Calculations

Microsoft Excel is one of the most remarkable software innovations – agreed!

Sales teams use it to track their leads, sometimes even when they have a CRM. HR teams are using it. And so are Marketing, Finance and almost everyone else. But Excel sheet with its gridded boxes is not the best idea for a lot of things.

For example, when calculating sales incentives.

Excel doesn’t just fall short on various parameters of calculations; it just makes it more complex and cumbersome. That is why a lot of companies serious about their worker incentive programs go in for specialized software systems that automate most of the process. They either end up building a bespoke software or seek a SaaS product that can serve the purpose.

So what exactly is the problem with using Excel sheets?

The downside of using Excel sheets for incentive calculation

Excel is an excellent tool for calculations, and there is no second opinion about this. Not just that, it helps store data with millions of rows available and is an excellent tool for data visualization, data cleaning, analysis, and reporting.

But when it comes to sales incentives, you need more than just that.

Incentive programs are based on specific rules and logic. Excel sheets, unfortunately, have not been coded to handle such complex computations with layers of logical reasoning embedded into the system. One can still argue that they can use nested ifs and indexes to build logic to their calculations but that’s too tedious.

And, what if there is an error in the nested ifs?

The entire compensation program can go for a toss.

Plus, there are issues with scalability, shareability, and real-time visibility.

Understandably, most people are pretty much used to spreadsheets, so it is natural to have a temptation to rely on them for all purposes. However, here are these six reasons that will convince you to look out for a new-age tool that will speed up your workflow and aid you effectively in calculations and compensations.

Let’s jump right in.

Manual updates

Back in 1985, when Microsoft introduced Excel, it was to improvise on calculators and mental computations. The spreadsheet is amazing in formulas. But there are limitations, and you will feel it as you keep depending on the sheet for incentive programs. One of the most significant drawbacks is that Excel must be manually updated. With one or two salespeople, you may be fine with the spreadsheet, but depending on Excel can become frustrating when business and team sizes grow. This means that Excel has scalability issues tasking & overburdening your employees in the process.

Error-prone

With manual-driven processes, the risk of error is always high. Since Excel operations need a person to feed in data, it is vulnerable to costly mistakes. While the contention of many Excel lovers would be that a mistake here and there definitely should not be counted as a con, we would like to remind here that when handling complex ecosystems like incentive programs, one slight mistake can lead to a chain of errors, thereby impacting the program dramatically. On the other hand, automated systems minimize risk phenomenally, also playing a vital role in making the process transparent and fair.

Knowledge transfer is a challenge

Individuals control spreadsheets. They design the workspace as per their convenience and understanding. One fine day, when the individual leaves the office or is absent from work, it can be pretty daunting for a new person to interpret the equations, formulas, etc. This means that in the absence of the person who has created the sheet, Excel sheets can become obstacles leading to delays, inaccurate reporting, etc.

It is not a live system

Excel sheets are not live and cannot be integrated with real-time enterprise-based systems. Until and unless someone updates the sheet on a shared mode in real-time, workflow on Excel mostly happens in solo mode. The data is primarily redundant and, over a period, becomes obsolete. Additionally, sharing Excel sheets mostly means sharing as an attachment on an email, denting the performance of your incentive program.

Compare this with modern software tools like My Incentives. It is on the cloud and accessible to every concerned person anytime, anywhere.

Tracking is an issue

One formula that gets changed by multiple team members, and there is no way of tracking who did what – sounds familiar? It is pretty frustrating trying to locate the source, especially in case of an error. Such issues are easily avoidable in automated tools because there is always a history, a digital footprint left behind by the user. This makes Excel less accountable, and when there are legal compliances and finances associated with the program, like in an incentive process, this can be a huge issue.

Manual release of payments

In incentive programs, one essential process is the payout. With Excel, payments are always manually released. This is because it cannot be integrated with any payment gateway or financial system for automated payments. New-age systems like My Incentives digitalize the entire process; therefore, there is no stress about manual payouts. If your business has remote teams, the system has in-built algorithms to take care of tax implications and legal compliances depending on geographical locations. Different payout options like gift cards, wallets, etc., can be easily woven into the system, offering exciting payment options to your sales force.

In conclusion: If not Excel sheets, then?

In response to the changing times and the exclusive demands of incentive programs, it is crucial to transition from basic spreadsheets to dynamic automated systems like My Incentives.

My Incentives, for example, can automate your complex calculations, run multiple incentive programs, and the disbursement too can be managed from the same platform.

If you wish to know more about My Incentives, we can give you a customized one-on-one demo.

Microsoft Excel is one of the most remarkable software innovations – agreed!

Sales teams use it to track their leads, sometimes even when they have a CRM. HR teams are using it. And so are Marketing, Finance and almost everyone else. But Excel sheet with its gridded boxes is not the best idea for a lot of things.

For example, when calculating sales incentives.

Excel doesn’t just fall short on various parameters of calculations; it just makes it more complex and cumbersome. That is why a lot of companies serious about their worker incentive programs go in for specialized software systems that automate most of the process. They either end up building a bespoke software or seek a SaaS product that can serve the purpose.

So what exactly is the problem with using Excel sheets?

The downside of using Excel sheets for incentive calculation

Excel is an excellent tool for calculations, and there is no second opinion about this. Not just that, it helps store data with millions of rows available and is an excellent tool for data visualization, data cleaning, analysis, and reporting.

But when it comes to sales incentives, you need more than just that.

Incentive programs are based on specific rules and logic. Excel sheets, unfortunately, have not been coded to handle such complex computations with layers of logical reasoning embedded into the system. One can still argue that they can use nested ifs and indexes to build logic to their calculations but that’s too tedious.

And, what if there is an error in the nested ifs?

The entire compensation program can go for a toss.

Plus, there are issues with scalability, shareability, and real-time visibility.

Understandably, most people are pretty much used to spreadsheets, so it is natural to have a temptation to rely on them for all purposes. However, here are these six reasons that will convince you to look out for a new-age tool that will speed up your workflow and aid you effectively in calculations and compensations.

Let’s jump right in.

Manual updates

Back in 1985, when Microsoft introduced Excel, it was to improvise on calculators and mental computations. The spreadsheet is amazing in formulas. But there are limitations, and you will feel it as you keep depending on the sheet for incentive programs. One of the most significant drawbacks is that Excel must be manually updated. With one or two salespeople, you may be fine with the spreadsheet, but depending on Excel can become frustrating when business and team sizes grow. This means that Excel has scalability issues tasking & overburdening your employees in the process.

Error-prone

With manual-driven processes, the risk of error is always high. Since Excel operations need a person to feed in data, it is vulnerable to costly mistakes. While the contention of many Excel lovers would be that a mistake here and there definitely should not be counted as a con, we would like to remind here that when handling complex ecosystems like incentive programs, one slight mistake can lead to a chain of errors, thereby impacting the program dramatically. On the other hand, automated systems minimize risk phenomenally, also playing a vital role in making the process transparent and fair.

Knowledge transfer is a challenge

Individuals control spreadsheets. They design the workspace as per their convenience and understanding. One fine day, when the individual leaves the office or is absent from work, it can be pretty daunting for a new person to interpret the equations, formulas, etc. This means that in the absence of the person who has created the sheet, Excel sheets can become obstacles leading to delays, inaccurate reporting, etc.

It is not a live system

Excel sheets are not live and cannot be integrated with real-time enterprise-based systems. Until and unless someone updates the sheet on a shared mode in real-time, workflow on Excel mostly happens in solo mode. The data is primarily redundant and, over a period, becomes obsolete. Additionally, sharing Excel sheets mostly means sharing as an attachment on an email, denting the performance of your incentive program.

Compare this with modern software tools like My Incentives. It is on the cloud and accessible to every concerned person anytime, anywhere.

Tracking is an issue

One formula that gets changed by multiple team members, and there is no way of tracking who did what – sounds familiar? It is pretty frustrating trying to locate the source, especially in case of an error. Such issues are easily avoidable in automated tools because there is always a history, a digital footprint left behind by the user. This makes Excel less accountable, and when there are legal compliances and finances associated with the program, like in an incentive process, this can be a huge issue.

Manual release of payments

In incentive programs, one essential process is the payout. With Excel, payments are always manually released. This is because it cannot be integrated with any payment gateway or financial system for automated payments. New-age systems like My Incentives digitalize the entire process; therefore, there is no stress about manual payouts. If your business has remote teams, the system has in-built algorithms to take care of tax implications and legal compliances depending on geographical locations. Different payout options like gift cards, wallets, etc., can be easily woven into the system, offering exciting payment options to your sales force.

In conclusion: If not Excel sheets, then?

In response to the changing times and the exclusive demands of incentive programs, it is crucial to transition from basic spreadsheets to dynamic automated systems like My Incentives.

My Incentives, for example, can automate your complex calculations, run multiple incentive programs, and the disbursement too can be managed from the same platform.

If you wish to know more about My Incentives, we can give you a customized one-on-one demo.

Workplace-relationship-building-pastime-or-productivity-fueler

Workplace Relationship-building: Pastime or Productivity Fueler?

by Rewards & Recognition

Workplace Relationship-building: Pastime or Productivity Fueler?

Workplace Relationship-building: Pastime or Productivity Fueler?

Workplace connections or relationships are crucial, especially today when more and more of our waking hours are spent at work. But, being connected at work does not mean being at home like one big happy family.

Workplace relationships create a positive culture where collaborations and a healthy working attitude can be nurtured. Sometimes these connections can develop into friendships, but the essence remains that connections at work can play a crucial role in efficient working. 

We are discussing workplace connections and relationships today because, generally, such aspects get ignored – such relationships seem unimportant to many leaders.

The fact is that many team leaders and managers rather discourage their team members from getting close with one another and remain stoically unaffected by the presence of others. But, many other leaders work progressively to create an ecosystem where employee relationships and connections are encouraged.  

What do workplace relationships mean? 

Irrespective of what it sounds like, workplace connections is not about building utopian teams. It means creating a well-balanced and focused team with team members who are completely in sync with each other. 

Relationships at work are more about relating and respecting each other’s perspectives and ideas. It is about understanding each other’s values and backgrounds.

Organizations do not have to create separate strategies for ensuring workplace connections. It can be weaved in the system as part of organizational culture.

But, why would one want to focus on this part that seems quite personal, and dependent on employees’ interpersonal skills?  

Do workplace connections matter? 

Connections matter. Man is a social being. We cannot usually do well in solitude. Companionship is an essential aspect of our lives.

The more our connections, the better it is for our mental and physical well-being. We need to have ties with people around us. Once the basic connections, meaning family and friends, are in place, we look at opportunities to establish more connections outside our social circle.   

And, of all such relationships, workplace connections are found to have a big impact on our stress levels, our behaviors, and performance levels.

It has been found that poor interpersonal relationships between workers can bring down their performance and attribute to increased stress.

Let us first understand the science behind human relationships.  

The science behind relationships 

Being part of a community where we belong is a basic human need as identified by psychologists.

Our physiological makeup is highly responsive to positive social connections. It affects our mental and physical health. The brain releases more oxytocin when socially connected. This hormone is related to motivation, the feel-good factor, and reliability.

Research also states that when a person works alone, he undergoes social pain in exactly the same part of the cerebrum as physical pain.

In another research in 2008, it was found that positive connections strengthen the body’s immune system, cardiovascular and neuroendocrine systems. 

Reasons to support workplace connections 

Enhances knowledge, especially in low-skilled tasks 

With strong workplace connections,  knowledge exchange is encouraged viably. Especially, in a factory, on the shop floor, a construction site, etc.

The positive attribute of workers being connected socially helps them ask questions, raise queries, give feedback or raise alarms effectively.

They feel more empowered to clarify doubts or learn a new aspect of work without apprehension.

Simply stated, they can walk up to a senior to ask for help, be it in the professional context or personal, without the fear of being rebuked or judged. 

Supports employee wellness and well-being endeavors

Employers spend thousands of dollars on employee wellness programs. Encouraging and fostering a positive work environment focused on employee connections can contribute to employee well-being in many ways.

Firstly, with sound working relationships in place, work is more enjoyable and stress-free. To a great extent, employee connections build a tension-free atmosphere that contributes to employees’ mental and physical health.

In one study by Mayo Clinic, it was found that when individuals have strong social support, they are prone to fewer illnesses and diseases.

In the workplace, when employees are encouraged to bond with their peers and colleagues at a personal level, it can keep employees happy, pepped up, and healthy. Thus, helping in supporting employee wellness initiatives.  

Fortifies employee engagement 

When employee connections are strong, there is bound to be greater respect and trust amongst employees. It, in turn, promotes a cohesive working environment that is extremely good and a prerequisite for teamwork and collaboration.

It impacts employee engagement creating a positive work environment that motivates employees to do their best. Consequently, the organization starts to gain credibility in the recruitment market, as the attrition rates consistently stay low.  

Supports innovation and productive working 

A study by the Center for Advanced Human Resource Studies at Cornell University in 2012 stressed the importance social connections in the workplace. Called the ‘Building Strong Social Connections Increases Innovation Capability,’ the study corroborated what behavioral psychologists have always said.

It mentioned how social connections amongst employees at work could help a company get an edge over the competition with the enhanced innovation capabilities.

Not just that, employee productivity is impacted by social connections too.

As we have already seen, positive work culture can be successfully created with employee relationships. It leads to lower stress levels offering an enhanced ambiance for employees to give their best.

Plus, there are lesser cases of absenteeism, lower energy levels during work, cases of burnout and irritability. It creates opportunities for employees to contribute whole-heartedly towards organizational goals, team objectives, and personal ambitions. 

Develops collaborative mindset 

Employee connections set the tone for collaborative working. That is the reason why many organizations invest a lot in team-building exercises. Because such activities help diminish hurdles and challenges to create social connections.

For example, people from the junior levels are teamed up with seniors, where they are able to set aside hierarchical differences and have fun together. They laugh together, build things together, challenge each other, and mingle with one another.

Getting the chance to get to discern each other at a personal level makes everyone more comfortable. It can be a big blessing helping promote collaboration, gratitude, respect,  and positivity. 

How to promote positive relationships at the workplace? 

It is clear that employers need to encourage connections between and across groups of employees. What are the ways to help employees connect with one another, especially so that a collaborative ecosystem can be fostered? 

  1. Lend a listening ear to your team members. More often than not, leaders and team leads are too busy. They do not have the time to stop and listen to their team. Encouraging conversations is the route to building connections amongst team members. It can be effective by being available and present when they want to talk and share. Taking the time out to listen to them helps build strong engagements, not just with colleagues but also with the organization and their work.  
  2. Encourage team members to chat and engage in informal chats to promote the building of connections. This is why many organizations earmark budgets at the beginning of the year for offsite, employee workshops, fun days, Friday lunches, etc. These events offer coworkers to interact and get to know each other better. 
  3. Conveying appreciation is another way to let employees know that their work matters greatly. Simple small messages can do wonders. Using digital platforms with centralized dashboards helps colleagues leave appreciative messages for one another, creating positive work culture.  
  4. Celebrating important milestones and events is another way to build workplace connections. Landmark events like weddings, birthdays, babies’ arrival, promotions, meeting targets, etc., are great ways to collaboratively celebrate important events showing the employees that their special moments matter to their employers.  
  5. Rewards and recognition are another impressive way to send a message of positivity across to the team. Companies like Johnson & Johnson give the Superhero Award to employees during the heights of the Covid-19 pandemic. 

 

Conclusion 

In a world where remote working, work-from-home modules, and scattered employees working in different time zones or business verticals are increasing, the use of digital platforms to help build workplace connections is becoming even more essential. Be it a simple greeting when starting work or cheering someone for doing good work, Letsbuzz has it all. Social walls, badges, rewards, certificates, celebrations, dashboards, discussion boards, community boards, etc., are all various tools that can push employees to connect with one another effectively. 

Click here to book a free, no-obligation demo with our experts today.

Workplace connections or relationships are crucial, especially today when more and more of our waking hours are spent at work. But, being connected at work does not mean being at home like one big happy family.

Workplace relationships create a positive culture where collaborations and a healthy working attitude can be nurtured. Sometimes these connections can develop into friendships, but the essence remains that connections at work can play a crucial role in efficient working. 

We are discussing workplace connections and relationships today because, generally, such aspects get ignored – such relationships seem unimportant to many leaders.

The fact is that many team leaders and managers rather discourage their team members from getting close with one another and remain stoically unaffected by the presence of others. But, many other leaders work progressively to create an ecosystem where employee relationships and connections are encouraged.  

What do workplace relationships mean? 

Irrespective of what it sounds like, workplace connections is not about building utopian teams. It means creating a well-balanced and focused team with team members who are completely in sync with each other. 

Relationships at work are more about relating and respecting each other’s perspectives and ideas. It is about understanding each other’s values and backgrounds.

Organizations do not have to create separate strategies for ensuring workplace connections. It can be weaved in the system as part of organizational culture.

But, why would one want to focus on this part that seems quite personal, and dependent on employees’ interpersonal skills?  

Do workplace connections matter? 

Connections matter. Man is a social being. We cannot usually do well in solitude. Companionship is an essential aspect of our lives.

The more our connections, the better it is for our mental and physical well-being. We need to have ties with people around us. Once the basic connections, meaning family and friends, are in place, we look at opportunities to establish more connections outside our social circle.   

And, of all such relationships, workplace connections are found to have a big impact on our stress levels, our behaviors, and performance levels.

It has been found that poor interpersonal relationships between workers can bring down their performance and attribute to increased stress.

Let us first understand the science behind human relationships.  

The science behind relationships 

Being part of a community where we belong is a basic human need as identified by psychologists.

Our physiological makeup is highly responsive to positive social connections. It affects our mental and physical health. The brain releases more oxytocin when socially connected. This hormone is related to motivation, the feel-good factor, and reliability.

Research also states that when a person works alone, he undergoes social pain in exactly the same part of the cerebrum as physical pain.

In another research in 2008, it was found that positive connections strengthen the body’s immune system, cardiovascular and neuroendocrine systems. 

Reasons to support workplace connections 

Enhances knowledge, especially in low-skilled tasks 

With strong workplace connections,  knowledge exchange is encouraged viably. Especially, in a factory, on the shop floor, a construction site, etc.

The positive attribute of workers being connected socially helps them ask questions, raise queries, give feedback or raise alarms effectively.

They feel more empowered to clarify doubts or learn a new aspect of work without apprehension.

Simply stated, they can walk up to a senior to ask for help, be it in the professional context or personal, without the fear of being rebuked or judged. 

Supports employee wellness and well-being endeavors

Employers spend thousands of dollars on employee wellness programs. Encouraging and fostering a positive work environment focused on employee connections can contribute to employee well-being in many ways.

Firstly, with sound working relationships in place, work is more enjoyable and stress-free. To a great extent, employee connections build a tension-free atmosphere that contributes to employees’ mental and physical health.

In one study by Mayo Clinic, it was found that when individuals have strong social support, they are prone to fewer illnesses and diseases.

In the workplace, when employees are encouraged to bond with their peers and colleagues at a personal level, it can keep employees happy, pepped up, and healthy. Thus, helping in supporting employee wellness initiatives.  

Fortifies employee engagement 

When employee connections are strong, there is bound to be greater respect and trust amongst employees. It, in turn, promotes a cohesive working environment that is extremely good and a prerequisite for teamwork and collaboration.

It impacts employee engagement creating a positive work environment that motivates employees to do their best. Consequently, the organization starts to gain credibility in the recruitment market, as the attrition rates consistently stay low.  

Supports innovation and productive working 

A study by the Center for Advanced Human Resource Studies at Cornell University in 2012 stressed the importance social connections in the workplace. Called the ‘Building Strong Social Connections Increases Innovation Capability,’ the study corroborated what behavioral psychologists have always said.

It mentioned how social connections amongst employees at work could help a company get an edge over the competition with the enhanced innovation capabilities.

Not just that, employee productivity is impacted by social connections too.

As we have already seen, positive work culture can be successfully created with employee relationships. It leads to lower stress levels offering an enhanced ambiance for employees to give their best.

Plus, there are lesser cases of absenteeism, lower energy levels during work, cases of burnout and irritability. It creates opportunities for employees to contribute whole-heartedly towards organizational goals, team objectives, and personal ambitions. 

Develops collaborative mindset 

Employee connections set the tone for collaborative working. That is the reason why many organizations invest a lot in team-building exercises. Because such activities help diminish hurdles and challenges to create social connections.

For example, people from the junior levels are teamed up with seniors, where they are able to set aside hierarchical differences and have fun together. They laugh together, build things together, challenge each other, and mingle with one another.

Getting the chance to get to discern each other at a personal level makes everyone more comfortable. It can be a big blessing helping promote collaboration, gratitude, respect,  and positivity. 

How to promote positive relationships at the workplace? 

It is clear that employers need to encourage connections between and across groups of employees. What are the ways to help employees connect with one another, especially so that a collaborative ecosystem can be fostered? 

  1. Lend a listening ear to your team members. More often than not, leaders and team leads are too busy. They do not have the time to stop and listen to their team. Encouraging conversations is the route to building connections amongst team members. It can be effective by being available and present when they want to talk and share. Taking the time out to listen to them helps build strong engagements, not just with colleagues but also with the organization and their work.  
  2. Encourage team members to chat and engage in informal chats to promote the building of connections. This is why many organizations earmark budgets at the beginning of the year for offsite, employee workshops, fun days, Friday lunches, etc. These events offer coworkers to interact and get to know each other better. 
  3. Conveying appreciation is another way to let employees know that their work matters greatly. Simple small messages can do wonders. Using digital platforms with centralized dashboards helps colleagues leave appreciative messages for one another, creating positive work culture.  
  4. Celebrating important milestones and events is another way to build workplace connections. Landmark events like weddings, birthdays, babies’ arrival, promotions, meeting targets, etc., are great ways to collaboratively celebrate important events showing the employees that their special moments matter to their employers.  
  5. Rewards and recognition are another impressive way to send a message of positivity across to the team. Companies like Johnson & Johnson give the Superhero Award to employees during the heights of the Covid-19 pandemic. 

 

Conclusion 

In a world where remote working, work-from-home modules, and scattered employees working in different time zones or business verticals are increasing, the use of digital platforms to help build workplace connections is becoming even more essential. Be it a simple greeting when starting work or cheering someone for doing good work, Letsbuzz has it all. Social walls, badges, rewards, certificates, celebrations, dashboards, discussion boards, community boards, etc., are all various tools that can push employees to connect with one another effectively. 

Click here to book a free, no-obligation demo with our experts today.