Four Steps to Consider if Your Sales Team Needs to be Paid Overtime

Posted by Brian Keating on Thu, Sep 22, 2016


In a previous post, we reviewed the Department of Labor's new overtime rule and how it could affect inside sales teams. Yesterday, a bill was introduced in Congress (H.R. 6094) to require a delay of the effective date by six months, pushing it to June 1st, 2017. This will give organizations more time to adjust to the new rule, or for Congress to propose new changes to the rule. If your team may be affected and considered non-exempt, here are four considerations as you evaluate how to keep overtime costs down: 


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Discussing the Impact of the New Overtime Rules on Your Sales Bonuses

Posted by Brian Keating on Fri, May 20, 2016

On May 18th, the Department of Labor (DOL) announced that anyone earning less than $47,476 in salary is eligible for overtime, with a few exemptions. Inside sales teams are impacted and so are more than an estimated 90,000 sales managers, according to the DOL. This has implications on not only base pay but also non-discretionary bonus calculations. When someone earns overtime, the employee is eligible for an increase in base pay and a corresponding increase on bonuses/contest awards during the same period. 


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Rethinking Your Incentive Plan When the Rules of the Game Change

Posted by Brian Keating on Tue, May 03, 2016

Companies in several industries are redesigning compensation plans due to regulatory intervention. Financial services firms, for example, are reacting to the April 6 U.S. Department of Labor (DOL) ruling that requires advisers working with investments that are governed by the Employee Retirement Income Security Act (think 401Ks and IRAs) to act as fiduciaries and put their customers’ best interests before their own. Even if advisers were already behaving in that manner, the ruling calls into question some of the commission-based incentive practices that are common in the industry.


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Is Luck a Strategic Criterion in Sales Comp Plans' Design?

Posted by Brian Keating on Fri, Mar 18, 2016

It’s well established that motivation decreases when the outcome of an activity is not in the salesperson’s control. Two salespeople with the same skills can exert the same amount of effort—and do the same things to control the outcome—and have very different results, seemingly because of luck. We, as sales compensation professionals, should simply remove luck from the equation, right?


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