In embodiments, the present invention is directed to methods of aligning an agent's compensation with an organization's goals, incentivizing an agent to improve their performance, and managing an agent. In one embodiment, the present invention includes defining a performance metric that relates to a goal of an organization. Performance levels are then defined for the performance metric. The performance levels are associated with performance values that an agent must meet to have their performance classified within a performance level. The method also includes providing a compensation rule that defines which of the performance levels an agent must achieve to change their current compensation. The performance of an agent with respect to the performance metric is then monitored to generate an agent performance, which is compared to the previously established achievement values to determine an agent's performance level.