Payout rules turn a goal's achievement percentage into a payout percentage using tiers, so you can set thresholds, caps and guaranteed payouts for each goal of an incentive plan. Customers also call these payout curves, commission tiers or accelerators. Each goal in a plan has its own payout rules.

Before you start

• You need the Manage incentive plans permission.
• The goal must already be in the plan. See Create an incentive plan: people, goals and weights.

The two rule types

Each tier has a Minimum achievement, a Maximum achievement, a Payout rule and a Payout.

Steps

Add payout rules to a goal (admin)

1. Go to Compensation > Incentive plans and open the plan.
2. In a draft plan, open the Goals step. In an active plan, open the Goals tab and click Edit weights & rules.
3. On the goal's card, click Add tier.
4. Enter the Minimum achievement and Maximum achievement of the tier. The first tier must start at 0.
5. Choose the Payout rule: Matches achievement or Fixed percentage.
6. For Fixed percentage, enter the Payout percentage.
7. Repeat for the next tier. Each tier's Minimum achievement must equal the previous tier's Maximum achievement.
8. Leave the last tier's Maximum achievement empty to make it open-ended, or fill it in to cap the payout.
9. Click Save.

Reuse payout rules on other goals (admin)

1. On the goal card that has the rules, open Goal options and click Copy payout rules. The message "Payout rules copied" confirms it.
2. On another goal card, open Goal options and click Paste payout rules.
3. To give every goal of the plan the same rules in one step, open Goal options on the goal with the rules and click Apply payout rules to all goals.
4. Click Save.

Remove a tier (admin)

1. On the goal card, click Remove tier on the tier.
2. Click Save.

Worked examples

Example 1 — Threshold (nothing below 80%). Tiers: 0–80 Fixed percentage 0%; 80 and above (no maximum) Matches achievement.

• 75% achievement pays 0%.
• 80% achievement pays 80%.
• 130% achievement pays 130%.

Example 2 — Threshold and cap at 120%. Tiers: 0–80 Fixed percentage 0%; 80–120 Matches achievement.

• 100% achievement pays 100%.
• 150% achievement pays 120%, because achievement above the last tier's Maximum achievement pays what that tier pays at its maximum.

Example 3 — Guaranteed payout and full-target cap. Tiers: 0–50 Fixed percentage 25%; 50–100 Matches achievement; 100 and above Fixed percentage 100%.

• 30% achievement pays 25%.
• 70% achievement pays 70%.
• 140% achievement pays 100%.

Example 4 — No payout rules. A goal with No payout rules applied pays exactly its achievement, with no cap. 135% achievement pays 135%.

Rules and behavior

• If a goal has no payout rules, then its payout percentage equals its achievement percentage, with no maximum.
• If achievement is below 0%, then it counts as 0%.
• A tier includes its Minimum achievement and excludes its Maximum achievement. With tiers 0–80 and 80–120, exactly 80% falls in the 80–120 tier.
• If achievement is above the last tier's Maximum achievement, then the payout is what that last tier pays at its maximum.
• If the last tier has no Maximum achievement, then the payout keeps growing with achievement.
• If the first tier doesn't start at 0, then the form shows "The first tier must start at 0".
• If a tier doesn't start where the previous one ends, then the form shows "Must match the previous tier's maximum".
• If a tier that isn't the last has no maximum, then the form shows "Only the last tier can have no maximum".
• If a tier would pay less than the tier below it at their shared boundary, then the form shows "Must be at least …" and can't be saved. A higher achievement can never pay less.
• If you change payout rules on an active plan, then the change only applies to periods that haven't been sent to payroll yet.
• Payout percentages are rounded to two decimals.

Limitations

• You can't set a tier that pays less for a higher achievement, for example a penalty band.
• You can't apply different payout rules to different people in the same plan.
• You can't change payout rules for a period that has already been sent to payroll.
• Paste payout rules isn't available on a goal whose payout rules can't be edited.

Troubleshooting

• Symptom: "Add tier is greyed out." → Cause: The last tier has no maximum ("Set a maximum on the last tier before adding another"). → Fix: Enter a Maximum achievement on the last tier, then add the next tier.
• Symptom: "Paste payout rules is disabled." → Cause: Nothing has been copied yet ("Copy another goal's payout rules first"), or this goal's rules can't be edited. → Fix: Click Copy payout rules on a goal with rules first.
• Symptom: "Someone was paid 140% on a goal." → Cause: The goal has no payout rules, or its last tier has no maximum, so over-achievement is paid in full. → Fix: Add a capping tier, for example a last tier 100+ with Fixed percentage 100%, for the periods not yet sent.
• Symptom: "I can't edit the rules, I only see View weights & rules." → Cause: The selected period has been sent to payroll or is being sent. → Fix: Select a later period in the date navigator.

FAQ

1. How do I pay nothing unless the goal reaches 80%?

Add a first tier 0–80 with Fixed percentage 0%, and a second tier from 80 with Matches achievement.

2. How do I cap the bonus at 100%?

Make the last tier end at 100, or add a last tier from 100 with no maximum and Fixed percentage 100%.

3. Can a goal pay more than 100%?

Yes, if the goal has no payout rules or its last tier is open-ended with Matches achievement.

4. Can I copy the rules from one goal to all the others?

Yes. Open Goal options on the goal with the rules and click Apply payout rules to all goals, then click Save.

5. What happens if I don't set any payout rules?

The goal pays exactly its achievement: 85% achievement pays 85%, 120% pays 120%.