Some (sales) people will earn more than others, this is acceptable in any team. Not acceptable is to have perceived inequalities. Objections will start from territory allocation - i.e. my colleagues have customers with better historical purchases, more and larger companies in their area. A solution is to adjust target levels in line with territory potential, and historical purchases (if renewals are in the target). However, small targets offer better opportunities for overachieving, which can be demotivating for top sales covering traditional large territories. In this case, consider an increase for the base pay for them. This will be perceived as ethical - higher target, higher base pay. Sales management is not simple, prepare for it.

Navigating perceived inequalities in commission structures requires open communication and transparency. I would engage with the sales team to understand their concerns and clarify how the structure rewards performance fairly. Implementing a tiered system that balances base pay and commission can help ensure all reps feel valued. Regularly reviewing and adjusting the structure based on feedback promotes fairness. Fostering a culture of collaboration and support is essential to address disparities and motivate the team. Please support my content by hitting the “Like button,” commenting, or both. #CommissionStructure #SalesEquity #TeamCollaboration

Navigating commission structures requires a visionary approach that prioritizes fairness and motivation. Sales leaders must recognize that transparent and equitable compensation models not only enhance morale but also drive performance. By fostering open dialogue and involving sales reps in the design of these structures, organizations can cultivate a culture of trust and collaboration, ultimately unlocking the full potential of their teams. Embracing innovative solutions in compensation can transform perceived inequalities into opportunities for growth and alignment, leading to sustainable success in sales performance.

Start by listening to their concerns and understanding their perspectives. Hold meetings to discuss the commission structure openly, explaining its purpose and how it aligns with company goals. If necessary, consider revising the structure to ensure fairness and transparency. Encouraging teamwork and collaboration can help shift the focus from individual competition to collective success. Lastly, I’d recognize everyone’s efforts to maintain morale and a positive atmosphere.

Creo que en la propia pregunta, tenemos la respuesta. Si ya partimos de que hay desigualdades, solo tenemos que pensar en como eliminar las mismas, no creo que nadie quiera implementar un programa de incentivos con desigualdades. Analiza como ser coherente con lo que les propones a tus equipos, se justo y equilibrado y premia la eficiencia por encima de todo lo demas. Recuerdo la frase de un antiguo jefe que me decia: "Menos explicaciones y mas soluciones"