Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

If a salesperson doubles his/her target, do you think it's fair for the company to decrease his/her commission percentage? Why?

I heard about a reputable company that does this. I personally think it's nonsense.

user-image
Question added by Deleted user
Date Posted: 2015/03/15
Kathy Mustafa
by Kathy Mustafa , Personal Assistant to CEO- Managing Sales and Marketing Departments , Saudi Kinda Real Estate

I've never heard of a company decreasing commission just because they doubled their target. I am thinking this is a backwards company who has no idea how to motivate their employees and appreciate their efforts. 

Georges Aref Chaoul
by Georges Aref Chaoul , Sales & Media Director , Maids.cc

Why so serious dear, it's normal where at some countries they still call employees (footman=اجير). We can expect even more like decreasing your salary at social security and more....

We can send a message here to all  senior HR managers: (Do not be deceived, bad company corrupts good morals.) 

                                                                                               Thank You.

رامى السيد العربى لطفى ابوالنور
by رامى السيد العربى لطفى ابوالنور , Business Development Manager , Insubit Chemicals Factory

No , if the company double the target must not just double the commission percentage it must also increase this percentage than the double and add more tools to achieve it . Otherwise the problem will be in the business plan .

Ibrahim Hussein Mayaleh
by Ibrahim Hussein Mayaleh , Sales & Business Consultant and Trainer , Self-employed

Yes, indeed it is NONSENSE.

Targets are set upon several issues including personal capabilities. If this sales person is capable to sell more, he should have got higher target from the first place.

When setting targets, it is assumed that the sales person is capable to achieve something between90 -110%. Achieving less or more than that (very often) means, there is something wrong with target calculations.

Asif Khan
by Asif Khan , Business Head , Ecstatic Motors and Brandz Management Consultant

It's a wrong/unethical approach that mounts to Business Unethics/Poor HR systems of the company.In such scenario concerned sales person should escalate the matter in writing within Company,escalation should happen in hierarchical manner such as from immediate boss till Head of the Dept..then to HR Dept and then to Head of the Company.In case of failure to get the dues cleared,the concerned sales person can approach to Labour Department of their jurisdiction,to get the justice/to get dues/compensation cleared

IRPHAN GHANI
by IRPHAN GHANI , Senior Management , A

Sales incentive plans are announced with sales targets to be followed for the financial year. So the question of any revision does not arise unless justified which is mutually agreeable.

Falak Sher Khan Khan
by Falak Sher Khan Khan , Accountant , Star Marketing (Pvt) Ltd

Company will increase the sales Target to maximize the goods sales out. 

Kishor Vadher
by Kishor Vadher , Sales Manager , Hausstrom ltd. Lagos

No I don't think its fair as any sales person do hard work upon achieving sales target and by that wants to earn good incentive then why company always change its system.You are right it happens in most company when executive earn something more then company change incentive system, why. Now company is earning very high if any executive is earning something but that also company don't bear? company don't want to earn that executive or manager where as these companies wants to be listed in Forbes, but it is unjust and such companies don't grow much. Now my one of the colleague in this company earns6 lacs Rs then company says we cant pay this settle with him but top mngt. don't think how much bushiness he has given. Your question is very true in today's company atmosphere, everybody wants to be billionaire but don't want any one to be millionaire.

Jane Macleod
by Jane Macleod , Retail Assistant , B&M

no, s/he should keep the commission due to earn it no wrong write  answer

Soumya Kanta Nayak
by Soumya Kanta Nayak , Branch Manager , ICICI Bank Ltd

in my personal view if somebody is achieving double of his target then the target distribution was not followed by proper planning and prior research. but i am dead against of decreasing the bonus or PLI. but a better approach should be considered before distributing the target next time

Deleted user
by Deleted user

It is in the favor of company goodwill.Because if the salesperson double his target there is no decrease in his commission actually he is increase or boost up the sale volume of the company and company also increase the commission percentage of salesperson 

More Questions Like This