Sales Manager Q & A: Should you penalize sales people?
By Dave Kahle Question: Our president recently suggested that we penalize the sales people for not meeting their goals by taking commissions away from them. Do you have any thoughts? Answer: Wow. My initial reaction is that it sounds so harsh. Put that way, and you are liable to lose 90 percent of your sales force, just on the principle of it.But, let’s spend some time thinking about this, as it is more complex than it appears.If you mean that you want to take back money that you have already paid, I can’t imagine that you could, or would do that. So, for example, you paid a sales person $20,000 in commissions during the year, along with a salary, and now, at the end of the year, you are saying that you are penalizing him for not making goals, and “Please give us $2,000 back?”My guess is that is illegal. I certainly do not...
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