He Just Says "No"

From: St. Paul, Minnesota

Question: I work as a manufacturing rep as an outside sales executive. All sales reps are paid at my company based on base pay and commission based on a percentage split of 60/40( 60% commission and 40% base pay ). The commission is based on sales volumes and a percentage is provided for sales that take place in a territory or in assigned accounts to individual sales reps.
 
For the last 6 years I have been credited 100% for all sales generated within a territory or within specific assigned accounts. Recently the president of my company has decided going forward I will get compensated for a 50% credit for all of the sales I generate while continuing to compensate all other sales staff at 100% credit for sales generated. I am paid based on specific accounts assigned.
 
I am working jointly with sales staff based on assigned accounts and the new assignment of a 50-50 split has been decided by the president of my company as a way to compensate for all sales into the accounts I have been assigned. I was never notified of the change by my supervisor the VP of Sales, the regional sales manager or anyone else in the company. I found out about the change when the inside sales manager sent a copy of an email sent to the employee who collects data for sales commissions for the company to me explaining how to credit my sales for January for commission pay. I have never received notice in writing that my pay has been changed.
 
I attempted to talk with my boss the VP of Sales. The VP of Sales refused to speak with me and told me the President of my company wanted to speak with me ASAP. I went to the Presidents office. He went through what was expected of me in my current position and the importance of working with others. I voiced my concerns regarding this change and that the new expectations did not line up with the expectations of other reps. I was told that I had a bad attitude. I was told my original increase would have been much higher and that it had been adjusted down. The President is intent on following through on this change. All other sales reps were given a 20-30% increase in their yearly sales goals. The company sales goal is 20% higher than last year. My sales goal went from 1.2 million to 1.3 million. Since I am only getting 50% credit for all of my sales I need to get 2.6 million in sales in order to be credited for 1.3 million in sales. This represents a sales goal increase of over 100% which is unrealistic, discouraging and negative. It also establishes a different method of compensation for all sales staff other than myself.
 
The president has made his mind up and will not change this goal and way of compensating me for my sales. I am afraid of being fired for insubordination. I left his office telling him I would do my best to sell as much as I can this year.
 
Any suggestions on what I can do?

Response: The situation you describe is complex — but seems to boil down to your company president’s decision to change your compensation without warning — and making your compensation structure different from others who do the same job as you.

Your decision to consult with a lawyer sounds wise.  There are questions you might want to address:

1. Do you have a written contract — and if so how does the compensation change fit with the contract?
2. Do your colleagues have written contracts — an if so, is your contract different?
3. What are the laws of the state where your company is based about compensation of people employed in your kind of job?
4. What factors can you point to that might have had any impact on your situation — specific incidents; differences between you and others in your company (age, race, etc.); your sales history; relationships with customers; market changes; personnel changes at the executive level; etc. that might possibly have influenced your circumstances.
5. For the moment it does not sound as if you have found anyone with whom you can negotiate within your company.  Is there an HR person/department with whom you can discuss your situation?
6. Can you think of anyone in the company who could offer you good advice, support, something on the order of an alliance?
7. What would happen if you were to discuss your situation with other members of the sales team?  Is there any likelihood you would get support from colleagues — or customers — that might encourage the president to rethink his position?
8. If things are as unpleasant as they sound, do you have other professional options to pursue (e.g. Go to work for a different company in your business sector, change to another business sector, change your location)
9. Have you considered how your situation might have an impact on other stakeholders in your company, your business sector, your community, etc.?
   

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