Incentive compensation automation.

As one of the largest, most powerful long-distance networks in the world, AT&T has also become a leading provider of data, internet and hosting services. Managing the compensation programs, however, could be complex, costly and unproductive.

Prior to implementing CDS' solution, AT&T's Incentive Compensation system was processed by an assortment of separate computer systems which operated in approximately 40 branches throughout the U.S. Each of these systems used a spreadsheet program, which required the manual coordination of several thousand sales resources with up to 40 different title-driven pay plans.

High administrative costs were unavoidable and the system did not provide the flexibility needed to motivate the achievement of specific sales goals. To realize its ambitious growth plans for the future, AT&T needed an Incentive Pay Automation solution that would allow the company compensation team to be instantly responsive to changing market dynamics. For the design and implementation of a unified, centrally administered Incentive Compensation Solution, AT&T knew it needed a resource with the capability to handle a complex, multi-tiered assignment quickly and accurately. They came to CDS.

At the time, the system was among the first in the industry to employ cutting-edge Web-based technology via a secure AT&T Intranet site. Highly mobile users are able to connect to the system, and then record and calculate commissions. Information from the field is uploaded instantly with minimal work on a salesperson's laptop computer and no software to install. End-user screens are dynamically generated based on user profiles at log in.

On the back end, AT&T gains multiple levels of access and security to accommodate a growing and changing management reporting structure. To avoid overpayments or other errors, a closed-loop verification component measures all compensation payouts against actual AT&T billing data before checks are cut.

Originally, the AT&T compensation team anticipated that the assignment would take nine months to complete. CDS provided a complete system that automated incentive pay for 4,500 end users in just three months.

As a result, over $1 Million per year is saved in administrative costs alone. In addition, increased Incentive Pay flexibility has enhanced AT&T's ability to manage goal attainment through incentive compensation programs, furthering their market leadership in key areas of the business.

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