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June 29, 2010
Recession ‘Red Flags’ With Commission Pay Plans

In a BLR webinar entitled ‘Commission Pay Plans: How to Motivate Your Sales Staff in a Roller Coaster Economy’, David Wudyka discusses recession red flags that are associated with Commission Pay Plans (CPP). He states that along with the usual challenges facing CPPs, the current U.S. and global recession that began in 2008 and continues running through many industries and regions today, has led to new problems affecting the way we pay our sales forces. These problems include the following:

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  • Decisions made in a panic that have come back to haunt you. These include decisions which in the long run, may not have been necessary
  • Decisions made that waver from your longtime sales compensation approaches. These could be decisions that resulted in a drastic change in approach from what was used in the past
  • Decisions made that ignore the fundamentals of your business. A clear strategy for the future should be used and adhered to

David Wudyka, SPHR, MBA, BSIE, is the founder and managing principal of Westminster Associates (, 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.

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