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New Compensation Model - WTF!

Storytime - An economics professor at Texas Tech said he had never failed a single student before but had failed an entire class once. That class had insisted that socialism worked and that no one would be poor, and no one would be rich a great equalizer. The professor then said ok, we will have an experiment in this class on socialism.


All grades would be averaged and everyone would receive the same grade so no one would fail and no one would receive an A. After the first test, the grades were averaged and everyone got a B. The students who studied hard were upset and the students who studied little were happy. But, as the second test rolled around, the students who studied little had studied even less and the ones who studied hard decided they wanted a free ride too; so they studied little. The second test average was a D! No one was happy. When the 3rd test rolled around the average was an F.


The scores never increased as bickering, blame, name-calling all resulted in hard feelings and no one would study for the benefit of anyone else. All failed, to their great surprise, and the professor told them that socialism would also ultimately fail because when the reward is great, the effort to succeed is great; but when government takes all the reward away; no one will try or want to succeed.


That being said, the company I work with has this new compensation model in which each team member will be rewarded equally based on the monthly Average Attainment of certain metrics.


So what's the logic here? low performers get equally paid as Top SDRs?


Let me know your thoughts and advice!!!! ๐Ÿ ๐Ÿ  potato for the long post.

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๐Ÿง  Advice
45
CoorsKing
WR Officer
+11
King of the Coors Knights
Is your SDR team run by marketing? That just seems like something they would do. Team numbers are terrible ideas, and never work. You will always have one or a few who slack off and the others have to carry them, which ultimately leads to your top performers burning out and leaving.

My advice is to keep track of all of your metrics, and percentile against the group. When this undoubtedly fails, I would honestly ask for back pay equivalent to your performance.
Jackywaky
Arsonist
+9
Master of Disaster
couldn't agree more with "_ ultimately leads to your top performers burning out and leaving_" - Will keep track of everything! ty
LordOfWar
Politicker
+7
Director
I like this idea, but the chances of back pay are almost non-existant. They have to tackle this immediately and show proof why they deserve more and continue to push for it until the plan fails.

Also be looking for work elsewhere, obvs.
JC10X
Politicker
+8
Senior Sales Manager
hahaha thanks!
funcoupons
WR Officer
+11
up in Fiji, under paddy
That prof is brilliant but as for your company's new comp plan:

https://www.youtube.com/watch?v=D4WO0mirjlQ
Jackywaky
Arsonist
+9
Master of Disaster
Checking now - hope I don't get Rickrolled
Jackywaky
Arsonist
+9
Master of Disaster
HELL NOOOOOOOOOOOOO โ™ซย 
Tr
Tribal24
Good Citizen
+1
SDR
Beautiful use of that.ย 
funcoupons
WR Officer
+11
up in Fiji, under paddy
Thank uย 
JC10X
Politicker
+8
Senior Sales Manager
Loved it!
Kinonez
Celebrated Contributor
+9
WR Enthusiast
This is not the way to go, the rep who put on the extra hours and extra deals should get extra compensation. I understand they might want to build team work, but sharing money is a terrible way to accomplish that.ย 
Jackywaky
Arsonist
+9
Master of Disaster
How creative you gotta go to breed such a terrible idea?? ik - agree a 100%
Kinonez
Celebrated Contributor
+9
WR Enthusiast
Asking the real questions, and if the are above you, I imagine these guys have some experience in the fieldโ€ฆ which makes it even more heart breaking to hear they agreed on that scenario.
Show 9 more replies
Swarthymovie
Arsonist
+7
SDR
From my previous experience i think the company idea sucks, cuz there is always someone who wont simply do the job, and is he gonna get the reward? hell no, i've been on both sides and i can say that the idea sucks, my PTSD is coming, hilp miย 
Jackywaky
Arsonist
+9
Master of Disaster
Common sense is the least common of the senses.ย 
JC10X
Politicker
+8
Senior Sales Manager
Hahahaha!ย 
bamageorge
Celebrated Contributor
+9
International Sales Director
What in the actual f*ck? I'm speechless. This is crazy!ย 
Jackywaky
Arsonist
+9
Master of Disaster
Indeed :/ย 
JC10X
Politicker
+8
Senior Sales Manager
X2!
Sgt_Trollingham
Valued Contributor
+5
Business Development Director
This reminds of my company, before I ran riot and convinced everyone it was a really poor way of doing things.ย 

The best example at my company for why this didn't work was as follows:ย 

I start as an Account Manager in a team of 2 (my boss and I). We have a team target of 2 million. As we start to kick ass and overachieve, tracking at 3 million, our CRO says we should hire another AM to help with the workload. Sound logic, but our team target was for the year, and now somebody who hasn't put in the work will be rewarded during onboarding. I don't make a fuss, it's my first real job and I don't want to seem like I'm selfish. The AM joins and gets a cut of my bonus, because the % of the team target is now smaller. I'm pissed, but suck it up. Move forward one year, I decide to take an AE role within the same company to avoid this type of shit. I hear through my colleagues, though, that she is complaining that other AM's aren't pulling their weight, and she'll miss out on her bonus because other people aren't working as hard. Our CRO says, look the model is designed to play as a team, two years ago, you got a free bonus for doing your onboarding. She kicks up more of a fuss about this... long story short, she was pushed out of the company, and now we stopped with this socialist shit lol.
Jackywaky
Arsonist
+9
Master of Disaster
Wish this could be the top comment so everyone can read it!
Sgt_Trollingham
Valued Contributor
+5
Business Development Director
Thanks! Upvote to the moooon lol. Although the current top comment is excellent!
Show 1 more replies
JC10X
Politicker
+8
Senior Sales Manager
Wow! What a retarded way to approach compensation! Socialism does not work! There is nothing like MERIT!
NoSuperhero
Politicker
+6
BDR
Lack of merit generates lack of grit, hence the zoomer generation.ย 
JC10X
Politicker
+8
Senior Sales Manager
Facts!
Show 1 more replies
Swarthymovie
Arsonist
+7
SDR
Agree, merit is a great way to move peopleย 
Jackywaky
Arsonist
+9
Master of Disaster
100% - I don't know how this is going to work xD
Show 2 more replies
Jbeans
Praised Answer
+3
Director of Sales
I take the risk of commission sales bc my money is in my hands. .. whatโ€™s the point of all the soul sucking pride crushing daily grind if the ultimate reward is not achieved? Worse, shared or not shared based on others? If my pay check is in someoneโ€™s hands ? Iโ€™d go back to marketing. Ever notice they are the happiest mofoโ€™s in the company?!
Jackywaky
Arsonist
+9
Master of Disaster
couldn't agree more. No words.ย 
JC10X
Politicker
+8
Senior Sales Manager
Hahaha 100% back to marketing!
Biznasty
Opinionated
+5
Lead Business Development Manager
When I was a server, I refused to work at restaurants that made people pool tips. Iโ€™d do the same as an SDR. Sales is not a team sport IMO
Jackywaky
Arsonist
+9
Master of Disaster
IMO it is when it comes to best practices, that's it. The rest is individual work. 100% with you.ย 
JC10X
Politicker
+8
Senior Sales Manager
IC all the way.
Adored
Valued Contributor
+5
Sales Director
Experience tells me this is a company thinking creatively about how they can pay their sales team less by way of commission.ย 

The impact on new business revenues should be minimal (short term at least) whilst they'll also be saving money on comp.ย 

If it succeeds, they pay everyone their OTE but they've got a much bigger pipeline and can probably take the hit.

Reeks of shithousery.
Jackywaky
Arsonist
+9
Master of Disaster
The lion, the witch, and the audacity of this b1tch. Totally.
JC10X
Politicker
+8
Senior Sales Manager
Hilarious!
CuriousFox
WR Officer
+11
Needer of Life Alert
Who came up with the model and are they current or even former sales performers?
Jackywaky
Arsonist
+9
Master of Disaster
Higher-ups :)ย 
Stratifyz
Opinionated
+9
Business Development Rep
Bless their hearts.
Show 2 more replies
SL4Y3R
Good Citizen
SDR
Spot on about reward. They just implemented a similar model at my job but luckily, I'm in a competent team and overall metric attainment actually means we'll all get more in commissions than before, when we were payed individually. And though it relies on everyone delivering similar results, management regularly lets under-performers go. Utopia?
Jackywaky
Arsonist
+9
Master of Disaster
Utopia Sprawl - I'll try my best to keep my teams on fire
Tr
Tribal24
Good Citizen
+1
SDR
I'm so sorry to hear this and I think I speak for everyone when I say this is utter bullshit.ย 
Jackywaky
Arsonist
+9
Master of Disaster
It is indeed - the worst part is when there's not streamline communication expecting everyone to guess the chances - omg ><"
No_ty
Catalyst
+6
Sales Dir.
This sounds like BS with extra steps
JC10X
Politicker
+8
Senior Sales Manager
I dont think there is anything extra lol
AlphaCharlie
Politicker
+5
Account executive
Hahaha, so just BS? xD
AlphaCharlie
Politicker
+5
Account executive
This is the perfect plan for failure!
JC10X
Politicker
+8
Senior Sales Manager
X2!
Grant_Horun
Politicker
+5
Account Executive
Absolute sham of an idea. Any company who thinks this model would work is crazy.
Jackywaky
Arsonist
+9
Master of Disaster
Welcome to my life โ™ซ
JC10X
Politicker
+8
Senior Sales Manager
Agreed!
LordOfWar
Politicker
+7
Director
The thought of sales and socialism in the same breath makes me laugh.ย 


You should almost tell management that if the prospect needs your product then they would be given it by the government, comrade.
Jackywaky
Arsonist
+9
Master of Disaster
Comrade! haha
cifu
Opinionated
+1
SDR
Happened once and the whole damn team died. The laziest members will arise and the whole performance overall trend donwhill.ย 
Jackywaky
Arsonist
+9
Master of Disaster
:( I fear that will happen sooner
JC10X
Politicker
+8
Senior Sales Manager
Facts!
alecabral
Arsonist
+8
Director - Digital Sales Transformation
Ah, the infamous team-quota! I walked out of a company that had me deploy that to one of my teams. Now...that's one way of doing it. Another way of doing it is simpler: commission + financial achievements. In a 50/50 split where 50% is variable, 80% to 90% of that variable is your complan for which you work your ass off, and the remaining 20% to 10% is tied to things like "the whole region must reach their revenue target", or even "the whole company". That works better.

When it's just plain team quota? Never liked the model.
Jackywaky
Arsonist
+9
Master of Disaster
Just plan team quota here - ty for sharing
SaaSKicker1000
Politicker
+6
AE II
People will game the system, over performers will stop over performing, everyone gets fucked in the end. That bites man, good luck.ย 
Jackywaky
Arsonist
+9
Master of Disaster
Thank you - hoping for the best here
mcsalesperson1
Politicker
+3
Account Executive
That model would drive me nuts if I put in the work, closed the deals, and we all got paid the same. Plus itโ€™s way too variable. It would drive me madย 
Jackywaky
Arsonist
+9
Master of Disaster
Madland in da haus
CaneWolf
Politicker
+12
Call me what you want, just sign the damn contract
Socialism can work in very small populations of homogeneous people and..that's it.

This is fucking stupid. I assume you're planning to quit?
Jackywaky
Arsonist
+9
Master of Disaster
I'm getting insight here to dodge the bullet neo style
sa
sales_women
Good Citizen
The enabler
I'd be pissed as a top performer if my teammate got paid the same as me and did less workย 
Jackywaky
Arsonist
+9
Master of Disaster
Everyone would - a total nuisance.ย 
beerisforclosers
Politicker
+8
Account Manager
Unfortunately, this is so on trend with the thoughts people are expressing at large. Whether they realize it or not. But I'd get out of there. I know I'm one who puts in extra hours, and I know the people who barely scrape by. And I'm not watching my hard work get split up and paid out to everyone.
Jackywaky
Arsonist
+9
Master of Disaster
how can we raise awareness and take action here?
AlphaCharlie
Politicker
+5
Account executive
Any updates on this?
Jackywaky
Arsonist
+9
Master of Disaster
Meeting atm with the new owners of the process
TheRealVladimirPutin
Opinionated
+5
AE
I would immediately start job searching if my team rolled that out
Jackywaky
Arsonist
+9
Master of Disaster
Oh well - thanks for that *updating CV*
User1234567
Politicker
+5
User1234567
sounds like a great prof
Jackywaky
Arsonist
+9
Master of Disaster
:/
APalmoze
Good Citizen
Business Development
Interesting
Jackywaky
Arsonist
+9
Master of Disaster
define "interesting"
SaaSam
Politicker
+6
Account Executive
Damn, I know I'm late to the party but I never imagined this possible yet the comments seem to suggest it's far from. The comments also give me hope however, as people seem to all agree socialism isn't a breeder of prosperity.
Jackywaky
Arsonist
+9
Master of Disaster
you can't share poverty haha
Deadskulls
Opinionated
+1
BDR
This is quite the story!!
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