Chapter 9

Employment Status and Pay Implications

Employment status changes affect sales compensation program payments. Each type of employment status change needs a policy to determine treatment of quotas and payouts. These employment status policies include new hires, lateral transfers, promotions, involuntary terminations, resignations, leaves of absence, vacations, and treatment of temporarily assigned accounts. Sales management needs to specify the company’s policies for each of these employment status changes in the terms and conditions of the sales compensation plan document. Specifying these practices precludes misunderstanding and potential legal action.

NEW HIRES

As new sellers enter the company, how should they participate in the sales ...

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