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July 03, 2010
Announcing a Commission Pay Plan Change

In a BLR webinar entitled ‘Commission Pay Plans: How to Motivate Your Sales Staff in a Roller Coaster Economy’, David Wudyka discusses the best way to announce a Commission Pay Plan (CPP) change in an organization. Is it better to just make an announcement about the intended change? Alternatively, should the employer make an announcement of an intended CPP change and give a time-frame such as 60 to 90 days for sales personnel to provide their input to the intended plan? Wudyka provides the following response:

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  • It can be challenging to make a major change in CPPs
  • It can also be a major change in culture
  • There could also be some complicating factors associated with the proposed change
  • Depending on the change to the commission plan, a longer or shorter time-frame may be involved
  • An example is the shift from an individual-based sales force to team-based sales force
  • A switch to a team-based incentive plan should not be done quickly. This is a structural change. Feedback about the intended plan should be sought and any concerns should be addressed

David Wudyka, SPHR, MBA, BSIE, is the founder and managing principal of Westminster Associates (www.westminsterassociates.com), a Massachusetts-based human resource and compensation firm that specializes in pay, performance, and productivity issues. He brings more than 30 years of professional HR and compensation experience to the table for clients around the country. He speaks and writes frequently on HR and compensation issues, and he earned his master’s degree from Syracuse University.

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