Performance Pay and Sales

Incentive Report - 2020

Sample Report

Performance Pay and Sales Incentive Report wtwdataservices.com | 1

Asia Pacific, 2019 © 2019 Willis Towers Watson. All rights reserved.
 Contents
Introduction 2020 Performance Pay and
05 Sales Incentive Data - Asia Pacific

27 | Australia 82 | Japan 137 | Taiwan

How to use this report
38 | China 93 | Malaysia 148 | Thailand
06
49 | Hong Kong 104 | Philippines 159 | Vietnam
Participating Organizations 60 | India 115 | Singapore
09 71 | Indonesia 126 | South Korea

Statistical Methodology
18

Survey Methodology
21

Contact Us
25

Performance Pay and Sales Incentive Report wtwdataservices.com

 Market Practice Snapshot Local Environment and Insights
Sample Country
The regulatory environment does not mandate the provision of
performance bonuses or profit-sharing. Similarly, there are no
related tax incentives for variable pay or profit-sharing. It is subject
General Variable Pay Plan Prevalence by Type to normal personal income tax and social security.
Global APAC Sample Country

78% 80%
75%
70%
60% 62%

Variable Pay Eligibility by Category

Uncommon Common Very Common
(0% - 33%) (34% - 66%) (67% - 100%)

7% 6% PLAN
2%
Voluntary Profit- Sales Incentive
Performance Bonus
Sharing Targets
Performance Bonus Voluntary Profit-Sharing Sales Incentive Business Unit Head and
Country Manager

Executive

Performance Bonus Plan Management

NON-SALES
Middle Manager and
Senior Professional
Formula-Driven Performance-Based Bonus Plan
Discretionary Performance-Based Bonus Plan Supervisory and Professional

Technical and Business Support

Global 79% 21%

Production and Manual Labor

Executive In the Sales Function

APAC 73% 27% Sales Manager

Sales Manager
SALES

(Manages Client Accounts)

Senior Sales Professional and
Sample Country 64% 36% Sales Professional
Product/Technical Sales
Support Staff
Telesales Representative
(Call Center)

Performance Pay and Sales Incentive Report wtwdataservices.com

 Policies and Practices
Sample Country

Short-Term Incentive/Variable Pay Plan Eligibility

Organization offers any type of Short-Term Incentive/Variable Pay Plan (excluding Sales Incentive/Commission Plans)
Number of Responses Percent Responding Yes

556 71.7%

Employee Categories Eligible for Short-Term Incentives/Variable Pay

Business Unit Middle Manager Technical and
Head and and Senior Supervisory and Business Production and
Country Manager Executive Professional Professional Support Manual Labor

Number of Responses 277 304 379 356 310 137

Performance-Based Bonus Plan (includes target

98.2% 98.7% 99.2% 98.9% 98.7% 99.3%
based and discretionary schemes)

Voluntary Profit-Sharing Plan 6.5% 4.9% 5.5% 5.3% 4.8% 2.9%

Organization offers a Performance-Based Bonus Plan and/or Profit-Sharing Plan to Sales Employees
Number of Responses Percent Responding Yes

422 31.5%

Sales Employee Categories Eligible to Participate in a Performance-Based Bonus Plan and/or Profit-Sharing Plan
Sales Manager
Sales Manager Who Also Senior Sales
Who Does Not Formally Professional and Product/ Telesales
Executive in the Formally Manage Manages Client Sales Technical Sales Representative
Sales Function Client Accounts Accounts Professional Support Staff (Call Center)

Number of Responses 77 78 104 103 83 47

Performance-Based Bonus Plan 94.8% 96.2% 97.1% 98.1% 98.8% 97.9%

Voluntary Profit-Sharing Plan 10.4% 9.0% 8.7% 7.8% 7.2% 10.6%

Performance Pay and Sales Incentive Report wtwdataservices.com

 Policies and Practices
Sample Country

Performance-Based Bonus Plan

Organization's Performance-Based Bonus Plan is Formula-Driven OR Discretionary
Business Unit Middle Manager Technical and
Head and and Senior Supervisory and Business Production and
Country Manager Executive Professional Professional Support Manual Labor

Number of Responses 169 194 237 231 213 66

Formula-Driven Performance-Based Bonus Plan 46.2% 43.8% 46.4% 44.6% 42.3% 37.9%

Discretionary Performance-Based Bonus Plan 53.8% 56.2% 53.6% 55.4% 57.7% 62.1%

Measures used to determine Performance-Based Bonus Amounts

Percent of Responses

Number of Responses 222

Overall organization performance 72.5%

Organization performance within the country/region 30.2%

Business unit performance 40.1%

Department performance 24.3%

Team performance 15.3%

Individual performance (job-related) 81.5%

Discretionary 30.6%

Other 5.4%

Performance Pay and Sales Incentive Report wtwdataservices.com

 Policies and Practices
Sample Country

Performance-Based Bonus Plan (continued)

Target Bonus and Maximum Bonus Potential for the Last Fiscal Year as a Percent of Base Salary
Number of 10th 25th 75th 90th
Responses Percentile Percentile Median Percentile Percentile Average
Business Unit Head and Country Manager
Target bonus 50 13.8% 20.2% 31.7% 62.5% 146.0% 63.1%
Maximum bonus potential 41 26.0% 40.0% 50.0% 133.0% 300.0% 108.7%
Executive
Target bonus 61 11.1% 17.5% 25.0% 50.0% 120.0% 60.4%
Maximum bonus potential 48 25.7% 34.8% 50.0% 120.0% 300.0% 108.2%
Middle Manager and Senior Professional
Target bonus 78 10.0% 14.3% 19.0% 45.3% 100.0% 52.8%
Maximum bonus potential 63 20.0% 23.5% 40.0% 100.0% 297.2% 92.3%
Supervisory and Professional
Target bonus 77 8.3% 10.0% 15.0% 40.0% 100.0% 49.9%
Maximum bonus potential 61 15.0% 20.0% 34.0% 100.0% 300.0% 90.1%
Technical and Business Support
Target bonus 64 7.3% 10.0% 15.5% 41.6% 100.0% 51.0%
Maximum bonus potential 51 12.7% 20.0% 34.0% 100.0% 300.0% 92.6%
Production and Manual Labor
Target bonus 16 10.0% 12.0% 21.0% 100.0% 243.0% 77.2%
Maximum bonus potential 15 13.9% 21.5% 35.0% 243.0% 330.0% 124.4%

Performance Pay and Sales Incentive Report wtwdataservices.com

 Policies and Practices
Sample Country

Sales Incentive Plans

Organization offers Sales Incentive/Commission Plan
Number of Responses Percent Responding Yes

164 72.6%

How Sales Incentive Awards are Calculated

Sales Manager
Sales Manager Who Also Senior Sales
Who Does Not Formally Professional and Product/ Telesales
Executive in the Formally Manage Manages Client Sales Technical Sales Representative
Sales Function Client Accounts Accounts Professional Support Staff (Call Center)

Number of Responses 48 61 80 104 45 25

Commission (Fixed Percentage of Sales

8.3% 6.6% 8.8% 10.6% 11.1% 8.0%
Revenue ONLY)

Commission (Fixed Amount per Item Sold) 6.3% 3.3% 5.0% 3.8% 4.4% 8.0%

Achievement of Predetermined Targets 41.7% 41.0% 38.8% 35.6% 46.7% 44.0%

Combination of Fixed Percentage of

Sales Revenue and Achievement of 43.8% 49.2% 47.5% 50.0% 37.8% 40.0%
Predetermined Targets

Performance Pay and Sales Incentive Report wtwdataservices.com

 Policies and Practices
Sample Country

Sales Incentive Plans (continued)

Target Award (at 100% Achievement of Objectives)
Number of 10th 25th 75th 90th
Responses Percentile Percentile Median Percentile Percentile Average

Executive in the Sales Function 12 25.5% 32.3% 61.0% 100.0% 100.0% 63.8%

Sales Manager Who Does Not Formally

15 22.0% 25.0% 40.0% 67.5% 100.0% 49.5%
Manage Client Accounts

Sales Manager Who Also Formally Manages

24 18.6% 25.0% 34.0% 58.8% 94.0% 45.0%
Client Accounts

Senior Sales Professional and

26 20.0% 26.3% 40.0% 92.8% 100.0% 52.8%
Sales Professional

Product/Technical Sales Support Staff 10 24.5% 26.3% 45.0% 73.8% 100.0% 52.5%

Telesales Representative (Call Center) 8 - 37.5% 46.5% 57.5% - 52.3%

Performance Pay and Sales Incentive Report wtwdataservices.com

 Policies and Practices
Sample Country

Sales Incentive Plans (continued)

Organization's Sales Incentive/Commission Payouts at 90% and 120% Achievement of Sales Incentive Target
Sales Incentive/Commission Payout at 90% achievement of Target Sales Incentive/Commission Payout at 120% achievement of Target
Responses (as a Percent of Target Incentive) (as a Percent of Target Incentive)

Responses
Number of

Number of
Percentile

Percentile

Percentile

Percentile

Percentile

Percentile

Percentile

Percentile
Average

Average
Median

Median
10th

25th

75th

90th

10th

25th

75th

90th
Executive in the
19 24.0% 41.5% 85.0% 90.0% 100.0% 67.7% 17 100.0% 120.0% 140.0% 174.0% 200.0% 147.7%
Sales Function

Sales Manager Who Does

Not Formally Manage 27 0.0% 27.5% 65.0% 90.0% 90.0% 55.6% 24 120.0% 123.8% 150.0% 200.0% 214.0% 160.3%
Client Accounts

Sales Manager Who Also

Formally Manages 37 0.0% 11.0% 50.0% 90.0% 95.2% 49.5% 36 113.5% 123.8% 150.0% 200.0% 225.0% 160.5%
Client Accounts

Senior Sales Professional

48 0.0% 18.0% 73.5% 90.0% 94.4% 56.7% 45 120.0% 120.0% 141.0% 175.0% 218.8% 155.5%
and Sales Professional

Product/Technical Sales
17 20.0% 33.0% 90.0% 90.0% 94.0% 64.3% 14 120.0% 120.0% 145.0% 200.0% 250.0% 165.9%
Support Staff

Telesales Representative
10 32.7% 75.0% 90.0% 90.0% 100.0% 78.3% 7 - 120.0% 120.0% 175.0% - 144.3%
(Call Center)

Performance Pay and Sales Incentive Report wtwdataservices.com