D
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Deluno

Account Executive

Fire Starter
Good Citizen
Contributor

Horrible comp plan change

Hi everyone,

Our company just published the comp plan for 2023. 

Last year everyone got between 8-10% of every nnarr sold. 

This year until the first 50% of the yearly target is hit, we will receive 3-4%, then after it grows to 5%, then at some point higher but not nearly to what we made before from beginning of each NNARR sold. 

Everyone is mad, people threatened to leave some are leaving now but they don't seem to be changing anything, it seems to make them happy to have people leave voluntarily. 

What would you do?
🍾 Commission
😤 Conflict Resolution
💵 Finance
13

14 comments

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FinanceEngineer
Politicker
7
Sr Director, sales and partnerships
Right now, and for the foreseeable future, there is a glut of tech sales out there. Teams have been trimmed or completely cut. Budgets have also been tightened. This is a way for people to leave without having to pay severance or unemployment. On top of that, it also saves money. If you have exit ops, take them. MNagement is banking on hard times to keep people and forcing them to perform. How many people have left?
Deluno
Fire Starter
0
Account Executive
Thanks for your answer. I know only of 2 people so far
poweredbycaffeine
WR Lieutenant
5
☕️
Do what you need to do to put yourself in the best position to succeed. Full stop.

Your team crushed the plan, cost the business a ton of margin loss, and now they’re backpedaling. Sucks when ops can’t put together solid comp plans.
oldcloser
Arsonist
1
💀
☝️ Winning doesn’t always suck. Just now.
CuriousFox
WR Officer
4
🦊
Do what you need to do while you look for a job on the down low.
Sunbunny31
Politicker
4
Sr Sales Executive 🐰
The only conversation I'd be having with my manager would be to 1:1 voice my concern about what looks like the company's financial status. If they're cutting back on comp, they may be having $ issues, and I'd want to know. I believe it's reasonable to discuss this with your manager; odds are high s/he knows it's not going to go over well with reps, and it's reasonable to be upset and disappointed in the plan.

If you're not happy with the plan and want to change companies, pursue that, but do not discuss this with your current company or colleagues, just see what's out there (competitors, maybe?) and start interviewing. You can decide to jump when you've landed something better. And in this market, I wouldn't be jumping before I had something better in hand.
Deluno
Fire Starter
1
Account Executive
Thank you I really appreciate your feedback!! In regards to financial status, the company is public and seems to be doing fine
Sunbunny31
Politicker
1
Sr Sales Executive 🐰
I've found having a conversation like this, where I think I know the answer, to work often enough to get to the real answer. Your manager might say there's no financial concern but the company is trying to retain liquidity or something else - if you really want to know (or care) what was driving the decision.
sketchysales
Politicker
3
Sales Manager
PBC said it best, if someone can look after you better then take the leap. Did the company provide any justification for the change or did they just make it with no additional communication?
Pachacuti
Politicker
2
They call me Daddy, Sales Daddy
In my previous company they made a HUGE (negative) change to the comp plan. Within the next year they lost 90% of the sales team - some loudly and some quietly. Tons of experienced sales professionals.

Sure they saved some money on commissions. But they lost a lot of future business and those professionals (me included) went to several competitors who took business from my previous company.

So if your company is needing to save money on commission payouts on the short term, they are doing what they have to do. But if they have a long term view, they are shooting themselves in the foot.
Maximas
Tycoon
2
Senior Sales Executive
Things are unstable after the recent financial crisis,give it till the end of the year and see if it gets any better and may be updated again during the next quarters and make up your final decision by the end of December!
Diablo
Politicker
1
Sr. AE
Don’t threaten anyone, if you think it’s time to move find a new role. I would stick around to see if things are changing based on others actions and then make a decision .
ChumpChange
Politicker
0
Channel Manager
I would stay the course and start prepping the bug-out bag for another opportunity. Unfortunately, other key issues might be happening in the background and the comp changes are just a symptom of it.
lowhangersalesbanger
Executive
0
Director of Sales
Of course they are fine with people leaving on their own. They don't have to pay severence or unemployment that way. Find another job then quit.

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