Wesley Iversen· HR Business Partner, Northwind Logistics
Asked in Sales Compensation ·
Logistics and freight forwarding group in the Nordics, 95 sellers across Sweden, Norway, Denmark and Finland. Following an acquisition we are redrawing territories from 1 July, half way through the plan year. About 30 sellers will lose or gain named accounts.
The plan document says only that the company may change territories at any time. It says nothing about open opportunities or how quota is adjusted.
I need a workable rule quickly. In particular: who gets paid on a deal that the old owner has worked for months but which closes after the change? And do you recalculate the annual quota or run two half-year quotas?
6 helpful · 1 insightful · 1 agree · 3 replies · 330 views · 3 following
Benefits Manager, Copperfield Mining
We use a 90-day protection window. Any opportunity at proposal stage or later on the day of the change stays credited to the old owner if it closes within 90 days. After that it belongs to the new owner. Both get credit if it closes in the window and the new owner has taken over the account, which costs a little but stops accounts being neglected.
Senior Compensation Analyst, Beacon Retail Group
Two half-year quotas, definitely. Recalculating an annual number means restating first-half attainment against a territory that no longer exists, and every rep will find a way in which the restatement hurt them. Close the first half, pay it out, and start again on 1 July with a six-month plan.
Total Rewards Manager, Steinbach Industrie
I disagree on closing the half and starting fresh. If you have annual accelerators, you have just given everyone who was at 40% in June a clean slate and penalised those at 70% who were about to hit the higher rate. We prorated the accelerator thresholds to the half year when we did it, and even then spent weeks on individual cases.
