KingFlavor

Account Exectutive

Executive

Good Citizen

Member

If you leave a Sales Role Mid Quarter, should you still get a pro-rated comission?

Hey War Room Heroes,

Burning question for you all this evening:

I recently left my company after an amazing 5 year run and joined a new sales organization. When leaving my old company, I was told that since I was not in seat during my quarterly bonus payout (10/31), all of my commissions earned up to my last day would be wiped out.

Even though I left in the middle of Q3, my commission wasn't pro-rated and I missed out on my ENTIRE Q3 bonus. My companies' reasoning? To "encourage employee retention".

I know the world doesn't revolve around me and this was in no way a personal attack on me for leaving, but I can't help but feel that this is an absurd policy.

What do you all think? Is this common, or did I get screwed?

🍾 Commission

28 comments

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Revenue_Rambo

Politicker

Bad MFer

All depends on what your comp plan says.

poweredbycaffeine

WR Lieutenant

☕️

This. This is it.

KingFlavor

Executive

Account Exectutive

Let's assume that this was in there (not by any means questioning the legality of this btw). And of course I found out about this after I already gave my notice and accepted a new position...
Do you think that's a fair policy that accomplished the goal of employee retention?

Revenue_Rambo

Politicker

Bad MFer

If you signed it, yes.

HVACexpert

Politicker

sales engineer

That what was in where? If your signed and in writing comp plan differs from what was paid, then you have an argument , if not, although it may suck, not much you can do.

KingFlavor

Executive

Account Exectutive

Totally agree with you both - again not questioning if my signature holds weight or if I should go back and fight for my commission. Really just curious on what the sales community thinks about these policies in general and if this is common

oldcloser

Arsonist

💀

In general? I believe this is common. I wouldn’t pay a full quarterly bonus to someone who was there for half the quarter, unless you hit all the numbers. If you hit the numbers they should pay you. It’s a petty move to not pay you. If you didn’t? No right to expect it in my book.

KingFlavor

Executive

Account Exectutive

Appreciate that feedback. Definitely didn't expect to be paid the full bonus as I wasn't in seat the entire quarter, but I had every intention of receiving what I earned up to the day I left, especially since I was on target. Not ideal!

Revenue_Rambo

Politicker

Bad MFer

Makes sense. There are different types of payment in your variable. Commission should be paid dollar for dollar based on what you closed regardless of whether you finish a financial period. Should be no minimum to get paid and not cap (except in some cases for windfall clauses). Companies will screw around with this but I personally think that anything other than being paid that way is BS.

In my experience bonuses are almost never paid if you leave. If you company does prorate then you’ve got it pretty good.

oldcloser

Arsonist

💀

what Rambo said

HVACexpert

Politicker

sales engineer

Yeah, I think you should get paid what you earned/sold. I am not sure if you should get paid a quarterly bonus before end of quarter .

KingFlavor

Executive

Account Exectutive

Appreciate it fellas - honestly feel better that this is indeed a common practice in Sales and that it's not just me

boredAnti

Tycoon

That One Guy

Yup, always read the fine print.

Sunbunny31

Arsonist

Sr Sales Executive 🐰

Always. What's in writing.

CuriousFox

WR Officer

🦊

What does your new hire paperwork or comp plan say?

Kosta_Konfucius

Politicker

ERP Sales

Usually if they close and already met the criteria for being paid out commission before putting in your notice, you should be paid out. However, if you signed a comp plan that says other wise it’s not gonna change

Retired Sales Professional

This policy should have been in writing. Did you get to read and understand this policy when you signed on the dotted line?

KingFlavor

Executive

Account Exectutive

Yea this was definitely in writing so its 100% legit. I signed the new comp plan in January and didn't think I would leave this year, so unfortunately got the short end of the stick. Was really just posting to see what people thought about the policy in general, regardless if it was in the plan or not

ChumpChange

Politicker

Channel Manager

From what I've seen and have been subjected to... they pro-rate your commission for the day you leave. If you leave mid-quarter then you get paid out mid-quarter.

KingFlavor

Executive

Account Exectutive

Would’ve loved if that were the case for me!

ChumpChange

Politicker

Channel Manager

Holy crap! They didn't pay you any commission for the quarter at all??? Super sketchy!

KingFlavor

Executive

Account Exectutive

Yea not great! According to some other folks on this thread, this does seem like a common practice for sales orgs though. This was definitely in the fine print of the plan, but regardless, still a tough pill to swallow

ThatNewAE

Big Shot

Account Executive - Mid enterprise

Yes, ideally. But again, what does your comp plan say?

Secondly - a deal closed is a deal closed. So I am of the fact that you should get the amount pro-rated.

jefe

Arsonist

🍁

As others have stated, it's all based on what's in your signed comp plan.
I'm of the opinion you should be paid out on commissions earned until you go, but if it's a quarterly bonus-type situation then you're SOL.

GDO

Politicker

BDM

Depends on the plan.

pirate

Big Shot

Account Executive

Realistically you didn't close it if you left in the middle of the quarter. I think it's fair not to be paid since you didn't close it.

Justatitle

Tycoon

Account Executive

Read. your. comp.plan. it is the only legally binding item that will get you paid or screwed

MRK47

Tycoon

VP of International Sales

As you signed the comp plan acknowledging it, then perfectly legal...doesn't mean it's not completely sh*t and frankly the rationale of doing this for retention purposes....well it didn't work in your case and really they need to focus on other efforts to ensure retention..not screw reps out of comms on sales the company has already been paid for. Does this also apply in the event a rep is terminated? That would be a huge red flag as nothing stopping the company doing terminations the day before every bonus payout...unlikely for decent performers but seen stranger things just to save a few $s.
In past gigs, comms were paid on all closed won opps where payment had been received at the point of separation / departure (minus any clawbacks on orders that had become delinquent).

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KingFlavor

If you leave a Sales Role Mid Quarter, should you still get a pro-rated comission?

28 comments

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