Practical HR Tips, News & Advice. Updated Daily.
Vesting of Commissions One particularly difficult sticking point with commission agreements is failing to define what is supposed to happen if a sale is canceled or the terms need to be renegotiated. One solution that eliminates many problems is to state that a draw or advance becomes a vested commission only after all conditions on […]
Sales compensation litigation is especially tricky because commissioned salespeople are particularly litigious. They are trained to read complicated agreements, and they will find the bad provisions. Furthermore, sales personnel are very persuasive speakers—that’s why you hired them—and they’re likely to be able to convince the court of their interpretation of the commission agreement. Kato, who […]
Communicating the Sales Incentive Plan Sometimes Pasteris sees the situation in which there was a great sales plan design but it failed because it was not well understood and appreciated by the salespeople. To avoid that situation, make sure that you: Send an announcement letter, particularly with the new plan that spells out its features. […]
Incentive Compensation Checklist General Questions Do you have an incentive compensation plan? Yes□ No□ Is it in writing? Yes□ No□ Does your incentive plan support the company’s mission and long-term goals/objectives? Yes□ No□ What levels of the organization will participate in the incentive compensation plan, e.g., top management, salespeople, entire organization? Yes□ […]
Executive Compensation Checklist General Do you have a plan for executive compensation? Yes□ No□ Is it in writing? Yes□ No□ Does it have stated goals? Yes□ No□ Do those goals include: Increasing productivity? Yes□ No□ Increasing quality? Yes□ No□ Retaining good employees? Yes□ No□ Attracting good employees? Yes□ No□ Rewarding good […]
by Dan Oswald A football coach in Utah recently went to great lengths to make sure his players understand the importance of high-school athletics—that is, he suspended almost the entire team because they were skipping class, had poor grades, and were even participating in bullying a fellow student. The coach, Matt Labrum, had his priorities […]
Pay-for-performance programs are being implemented with increasing regularity by organizations today. The ability to see that direct correlation between an employee’s contributions and how much they are paid is appealing to employers and employees alike. However, it doesn’t come without risks. Here are 4 of the biggest risks employers face when implementing a new pay-for-performance […]
This is the 2013 version of our most popular article ever, written in 2006. In no way is our list authoritative, but it is the opinion of people, including BLR® Founder Bob Brady, who’ve spent decades meeting with HR professionals, supporting their goals, and reporting their achievements. You may agree or not with our assessments, […]
by Dan Oswald Webster’s defines cooperate as “to act or work with another or others . . . to associate with another or others for mutual benefit.” It sounds simple enough, but in practice it’s not. Nothing is more important in an organization than interdepartmental cooperation, yet it’s so difficult to achieve. Why is that? […]
Rubino, who is founder and president of Rubino Consulting Services in Pound Ridge, New York, offered his suggestions at the 64th SHRM Annual Conference and Exhibition, held recently in Atlanta, Georgia. Here are the rest of Rubino’s tips: [Go here for tips 1, 2, and 3.] 4. A Successful Plan Sets Total Compensation Integrated With […]