Team Plans: Good for the team and the company? Will top performers leave if the comp plan changes from IC measurement to Team measurement? What are the Pros and Cons of team plans?
YoureMuted
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I'd never work anywhere where team performance was a major factor in my comp.
What if your OTE was high on a 50/50 split?
I stand by my assertion. I want to be paid for *my* efforts. I hope the team does well, but since I'm not involved in their day to day business I don't want it to impact my comp.
This right here. The only person who should be affected by team performance is the manager.
What if your comp included company shares (publicly traded)? The better the company does, the more their stock goes up, the more you're making... Just continuing to play devil's advocate and try to see all sides.
You mean like a bonus? Worked for a large tech company that did that for all employees for a while - if goals were hit, everyone got a bonus. Sales included, on top of commission. 2008 hit, the bonuses were paused, and were never returned to sales because "we were comped differently than everyone else". It was a bummer, but the majority of people would not trade their commission for equity, stocks, or a bonus.
If it's a bonus on top of IC achievement, then it can work. If it's instead of, yeah I think it's going to be a problem. Depending on the industry, the job market may temporarily prevent your top performers from leaving, but in my opinion, if my comp is dependent on someone else's performance, then I'm going to need a manager title and a higher base pay. Anything else just looks like the company is going cheap.
Havenโt seen all of the details yet, but I believe the team performance metric comes with a big equity package for all if attained. ICโs will still get commish if their individual portion is attained. I thinkโฆ should know more next week.
When I was in sales it was always a negative impact if comp plan was only based on team achievement, because you have those that really work hard and those that don't. That's just the reality of it. If the team makes their goal everyone gets paid, great. But then the individuals who worked hard to hit their goals will start asking, " why do the slakers get the same comp as us." This can cause a greater divide in the team. There already exist a divid between those that do and those that don't. Flip the script and let the team not hit their goal and the top performers will start to resent even more those that don't make their goal. It's a double edge sword. It really needs to be monitored. What we did was give full comp to those that hit their goals and partial to those that came close and nothing for those that obviously didn't give It the effort. A three tier system. It's a win win. All the best.๐๐
It's a lot of dependency on the team, to make money. And I choose IC role because I want to be the sole person responsible for making money - why would I want to be an IC title, but be dependent on others to make money? No.
Yeah for inside sales maybe or a bonus structure for the team, but for IC my pay should be based on my performance, Iโm not responsible for others.
If it hurts their earning power and they have an exit to something better they will jump
Continuation: the three tier system of compensation incentifies those that view the plan as unreachable (these individuals don't make comp % low) to reach for tier 2 and those that are already at tier 2 to reach for tier 1 which is full compensation. Any which way you slice it, everyone wins.
I was part of a team that did this. Split as 70/30 instead of 50/50 and the payout was based on team attainment but weighted. So the team earned a total commission number and the highest contributing AEs got the highest % of the payout
Was the most fun team I ever worked on to be honest
Team? Fuck that. I'm compensated well because I bust my ass. I don't work for free.
Yeah this is 300k OTE on a 50/50 split, so theyโre not working for free either.
Fuck that, I don't want to be carried, nor do I want the group project laggards eating off my plate.
SE comp was primarily on a team number, it's a large reason I left.
I wouldn't like it
Team plan will never get the best out of the team.
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