Commission Statements

A few years ago, it seemed like my commission statements were always wrong in one way or another, so I started tracking revenue, profit, aftermarket revenue, commission & League points for every deal. This made correcting any errors a much simpler process even if I had to have the commission statement turned in the day that I received it. Then, last year, we moved from a profit plan to a revenue plan similar to what you described, and I am not nearly adept enough at Excel to create all of the "If-Then" formulas required to track my commissions. So, I asked our Accounting Department to forward me the same Excel workbook that they use to generate commission statements. Now, when I close a deal, I simply input that deal into the spreadsheet, and it tells me how much my commission for the given time period will be based on my % attainment to quota.

Your Accounting Department has to use some sort of a tool to calculate commissions. See if they will share this tool with you.

Everytime you don't get the comission sheet you want, request a meeting to review the information with whoever makes corrections. Make sure you very nicely review every last detail taking up much time with that person.Maybe even schedule it late in the day so it runs after regular business hours. Then when it happens again, do the same. Soon this person will either give you the info or know it will take time from their day. It will take your time as well but you will get what you deserve.

quote:

Originally posted by Monte:
Everytime you don't get the comission sheet you want, request a meeting to review the information with whoever makes corrections.

That's the point I don't get any of them back, so every month I would have to call and ask for them. Anyone else??

Art....you are in a sticky situation. This is the challenge when working for a dealer. I dealer can pretty do whatever they want and make up rules as they go. Dealers are very good at covering up the "incidentals" and passing those costs onto reps. I use to work for a dealer on a GP system. For years I just hated commission day as I knew it was always going to be a battle to get what I know for a fact was coming to me. This dealer after the deal was done would change my out price for the deal which dropped my GP or %. The only revenue concern each month determine what % bracket you were in to make commission. It was not a deal by deal plan but what you did for the month. I saw my own manager who was responsible to turn in the final commission sheets to the controller actually modify forms that was suppose to pay a newbie a certain amount but was actually a fraction of that. OR tweak the numbers in their favor to artificially increase the GP. I would be promised xyz for a deal because I had all the system knowledge and could do all the technical work....not be paid after the deal was closed. Or win a big deal but then have it taken away from me after I have done all the work. I could go on and on how many dealers take advantage of inexperience. But it is harder to do that now when I know more about this industry than a majority of people in the office.

I would think you have the right to ask for your commission sheets back and review them before you are paid. It is your money you earned. The key is not to tick off the owners or admin because you are asking every month. The owners know what they are doing and they are covering up the few dollars here and there. They make up excuses why they cannot pay you the full amount. As stated you can keep track of each deal yourself but in the end it is your word against theirs. Most newbies that have not been in the industry for many years would not even understand or catch what most dealers get away with on a daily basis.

Art, you can ask for your sheets after you are paid then go back with evidence why you dispute the numbers. You should ask for a copy for your own records. It is hard to ask before you are paid because they are dealing with all the reps....IF the other reps see you asking for them then it opens up a hornets nest which admin does not want to deal with.

You are in a tough spot Art. I like Monte's recommendation of scheduling a meeting and doing it late in the day. You are looking to ask the dealer to change thier process relating to commisions. Your request of having a commision statement ahead of pay day is perfectly reasonable, however that might not be enough for them to change thier process. You can make it painful to review things with you like Monte said, that could work. Is there a win in it for the dealer if they provide commision statements ahead of payday? I also keep a very detailed record of my commisions due, so that if something is wrong I can quickly identify what is wrong and move to have it corrected. Sorry cant be of more help, I have been in your situation and it is difficult. You dont know what is coming in and the dealer really does not care if you are surprised. You would think that they would like employee satisfaction with increased sales. What better way to motivate a sales rep then to provide a reminder in the form of a commision statement in the middle of the month that all the hard work pays off.

Hey, thanx for the replies it seems like its a no win situation. I asked my manager for a change multiple times and all he tells me is the response from management is no else has issues. That's another story in it self.... however it's just a real drag to now have to ask for them each month. But, as long as they give it and don't put up road blocks I guess I can live with that. Just wanted to see if others were having some of the same issues, thanx again for the replies. I just had to vent!

Art,
You absolutely have a right to get your sheets back. It sounds like there is a double standard. You are responsible for having your paperwork complete, correct and turned in but management is more casual about their responsibility to you. The only way to get someone to do something is to show them the benefit to them of doing it. As a top producer you should explain to management that you can produce more sales, revenues and profit for the company (what they want) if you aren't spinning your wheels worring about the uncertainty of your pay. You need to make sure you are working for a company that understands how valuable a top producer is and Unfortunately the only power you have in the company is the power to leave the company and you have to decide if you are ready to go that far over this issue. Good luck!

Dean:

Thanx for the reply, we just started a new comp plan, and I'll see how it goes, we're on a GP plan and so far all looks well. No more tiers and percentages, thank goodness!