How to Manage Disputes and Adjustments in Incentive Compensation Management

Effective incentive compensation as part of an organization’s sales performance management approach can be a powerful strategic lever for success. When structured correctly, it rewards the right behaviors, drives performance, and aligns teams around shared goals. But when issues arise—whether a commission check does not match expectations or questions arise on how performance was evaluated—they can quickly erode trust and distract from results.

At its best, incentive compensation is transparent, equitable, and directly connected to business outcomes. When it falls short, disputes and reactive adjustments become unavoidable. With the right approach, your business can manage these challenges proactively and transform your sales strategy.

Here is a practical framework for resolving disputes and navigating plan adjustments with confidence.

Why Do Disputes Happen?

Disputes typically stem from a few recurring causes:

• Calculation errors: Manual or outdated systems introduce risk, and even minor errors can undermine confidence
• Ambiguity in the plan: Vague goals, unclear eligibility, or loosely defined metrics leave room for misinterpretation
• Mid-cycle changes: Adjusting targets or policies midstream—no matter the reason—can feel like shifting the goalposts
• Perceived inequity: When compensation does not reflect effort or outcomes, it can cause frustration

Disputes are not just disruptive—they can have real impact on your business. According to AIHR, over 30% of employees are dissatisfied with their compensation, and more than half of them are considering leaving. When your top performers do not trust how they are being paid, retention suffers.

So, how do you manage disputes and drive alignment, without slowing down business?

1. Lay the groundwork with clarity and transparency

Prevention is the most effective dispute resolution strategy—and it starts with precision and visibility.

• Standardize documentation: Use plain, accessible language to define how compensation is calculated, when it is paid, and what metrics apply.
• Move off spreadsheets: Modern Incentive Compensation Management (ICM) systems automate calculations and surface real-time earnings visibility for reps and leaders alike.
• Reinforce understanding: Do not assume one rollout is enough. Schedule ongoing training—especially after plan changes or at the start of a fiscal cycle.

2. Establish a structured, fair dispute process

Even with a solid foundation, disputes may still arise. What matters is how you manage them.

• Define a clear workflow: Employees should know exactly how to raise a concern, who will review it, and when to expect a resolution.
• Ground decisions in data: Remove subjectivity from the equation by relying on system logs, documentation, and historical context.
• Respond with urgency and clarity: Delays or vague responses compound frustration. Timely, transparent communication reinforces credibility.

A fair process is not just about closing the case—it’s about showing your people that their concerns matter and are addressed with care.

3. Approach adjustments with intent and empathy

Sometimes, change is necessary. Go-to-market shifts, economic headwinds, or evolving priorities may require mid-year plan adjustments. The key is managing change deliberately:

• Schedule regular reviews: Don’t wait for issues to surface. Conduct quarterly or semi-annual check-ins to evaluate compensation effectiveness and alignment with current objectives.
• Invite cross-functional input: Engage HR, finance, sales leadership—and ideally, front-line reps—before making meaningful changes.
• Lead with context: When people understand the why, they are more likely to support the what. Clearly explain what is changing, why it matters, and how it impacts individual outcomes.

4. Leverage technology for scale and accuracy

ICM platforms enable agility without sacrificing accuracy. Organizations using the right solution can:

• Automate complex calculations, reducing manual effort and potential errors
• Provide self-serve dashboards so reps can track progress in real time
• Accelerate dispute resolution with built-in audit trails and workflow automation
• Adapt plans dynamically, without relying on manual rebuilds

According to Visdum, companies that implement ICM software reduce errors by up to 90% and shorten dispute resolution time by over 40%. That’s more than just operational efficiency—it creates better experiences for your employees and drive more revenue.

A strategic approach to managing compensation

Disputes and plan changes are a natural part of any incentive strategy. But they do not have to slow down momentum. By building a foundation of clarity, empowering fair resolution processes, and embracing the right technologies, your business can drive improved alignment, trust, and results.

Need support building compensation plans that scale—or selecting the right ICM platform for your needs? We help organizations create effective sales performance management programs that integrate people, processes, and platforms to get incentive compensation right—every time.

Contact us today to find out how we can help unlock your organization’s full potential and drive sales performance success. Argano helps organizations integrate people, processes, and platforms to get incentive compensation right—every time.