Looking for some input, I want to hear what you guys say. I have a call into HR but they haven't gotten back to me yet.

Here's the deal -

I've been a sales rep for this company for almost 7 years. I have always been in good standing and have always been in the top 5% of performers. My track record is immaculate. And this is ultimately my downfall.

Yesterday, my boss pulls me an the other top performers (10 of us total) into his office and tells us they are giving us a bump in title (no pay) and a 46% quota increase. My old position, is still available. It is not like they eliminated the sales team I am currently on. I am being promoted from a Senior Rep to an Executive Rep.

Now, I haven't talked to my boss yet to tell him I do not want it and just want to retain my current position, but 3 other reps have already told him that they don't want it either. He more or less said too bad.

With this promotion, if I sell the same this year as I did last year, I stand to make about $30K less. This company is public and a fortune 500 company also, not sure if that matters. Anyway, that's bascially all of it. Thoughts? Do labor laws very by state at all? I am not even sure if this is a labor issue or not. But I do not want this promotion, I just want to keep my current position and based on my track record, they can't fire me for poor performance.

 

Can they do it? Probably.

Sounds like the "Circuit City" approach, we all know how it worked out for them.

You get better territory/clients with the promo? Or have to sell to the existing base + 46%?

If you meet new quota, what kind of % increase you looking at over current income?

 

I'm inside sales, my territory is the entire US. This promotion gives me no added benefit whatsoever other than the title of "Executive"... It's difficult to answer your last question based on my comp plan, too many variable components and other bonuses based on how my new team does. If I rock and they suck, I make less. This really pisses me off. I could undertand them putting us into these positions if our old positions were elimintaed, but they aren't. Quota's go up every year, my current teams quota went up 10%, which is normal. This "Executive" position calls for a 46% increase, doing exactly the same job I am now, just with a different title and much higher quota.

 

I would have to agree with the above post, but since you have a good record and good relationship (I trust you do) I would say to talk to your boss and see what happens, unless your union the be sure to have your representative with you.

 

Same question as SafetyDaveG, do you keep the territory you have, or are you shifted to named ( large ) accounts ?

Sounds like the BCR does not stay the same, so with the quota adjustment, you are staying at the same at plan number at 100% of quota retirement.

Is this a case of they are pulling your large accounts in your territory, making them the named accounts list for the Executive Rep, and now the Sr Rep has your old geography and has to start the area over again ?

Guess it comes down to what the account list ( or territory ) is, and if you would have to start over less your large repeat customers.

This is usually what I see in our industry when they want to cut turf down to multiply sales.
You get the option of keeping your large accounts with a larger quota for the next fiscal year, and the new guy gets your old zip codes, and has the starter quota for the 1st yr, with your previous year quota in the next fiscal ( FY2011 ).

If you look at the HR documents, you are most likely an at-will employee, which means it is what ever the company says for your job description / area. They can give you a 70% quota increase with the odd numbered zip codes in the down town area, and tell you good luck. This is usually "The Plan", or the way to make you quit. 90 days into this new mess, you would be down on quota, and go on "The Plan" which is usualyl make up your short fall from Q1, and everything for Q2, else you are gone.

 

My territory stays the same, my oppotunity (accounts I can call and products I can sell to said accounts) stays the same also. We do have field reps who are territory restricted, but inside reps have the entire US. That will never change.

In order for me to make the same amount of money this year as I did last year, I would need to sell about $150K more. Our average sale is rougly $3-$5K... Last year I sold $360K... Which means I now have to sell $500K just to get equal pay. We do have a base salary which is low IMO (about $36K), but that has not increased at all. There are certain perks like more freedom and flexible work hours, but nothing to come close to justifying this increase.

I understand what you and SafteyDave are getting @, but Inside Sales is not like outside sales. Outside also gets credit for everything I sell in their territory, regardless as to whether they did anything or not. However, it doesn't go both ways, because my territory is the entire US.

 

Oh, and the other thing is that not all the "Senior Reps" were "promoted", just the top performers. I can also understand them "promoting" everyone on the Senior into this BS position and just saying tough, but they only singled out a select few. Also, this is something that I never interviewed for, nor were these "Executive" positions ever posted, which has always been our policy in the past. Any open positions need to be offered to external candidates as well as internal.

 

I am not in sales but from what you have posted it looks to me that the company has decided that they pay you too much.

They take all the top sellers (read earners) and make them work even harder to attain the same money.

It seems pretty short sighted on the companies part to me. They should be looking at the volume you sell and the money you make for the company. Why take the guys that excel at their job and punish them? You will just make them jump ship to your competition. If they won't back off I say screw them and leave as soon as you find something better. Some clueless managers plan always looks great on paper until they lose all the employees they want to keep.

 

I'm not in sales either, so don't really know how it all works for you guys, but to me, it sounds like "Here's a new title, no base pay increase, you have to produce 46% more sales to get the same commissions you are now, congratulations!"

That would be like my boss promoting me at work and saying, "oh, you have to manage 46% more computers now, you get this new title, no additional pay and you still have to do it all in your normal 8 hour day......

Sounds like they are taking advantage of your sucess and not wanting to compensate you for it.... Pretty low blow in my mind...

Now, if you got additional commission for that additional 46%, then it's better then not getting it, but still more work for you....

Good luck!

Mitch

 

I am with the others who satted that your company thinks you made to much money. They are downsizing and think they pay you too much. With the economy the way its in its your company thinks its going to be hard for you to say no. This is happening all over as employees are doing more work and getting paid the same or less in a case like yours.

 

That sucks . Hope it works out dude.

 

Sounds like you're commission based only. They can screw with yer commission all they want and there isn't anything you can do about it. I'd suggest, since you are apparently good at what you do, find another job. There are tons of companies looking for top sellers like you. I'd start at a national head hunter and see just what you are worth. It costs you nothing to talk with these guys and you might be able to get into a much better company making even more than you are now with less headaches. Don't know if ya don't ask.

 

Thanks for all the input guys. I did talk to HR and they basically said to bend over and take it, or quit (in their polite HR way). So, I'm screwed. Finding another job in MI is easier said than done I'm afraid. Also, this is a six figure job so I can't just walk away from it either, the wife stays at home with our two kids, I am the sole breadwinner.

Time to dust off the old resume I guess. I am also a guest speaker at our Annual Sales Meeting at the end of the month (about 3000 people from our company and all of our sister companies). I love to have another job lined up by then and just quit in front of everyone. I guess we'[ll see what happens. I can promise you though that if that meeting was today, I probably would have been fired because I don't think I would be able to control my anger.

Oh well, here's to "workin for the man every night day"...

 

Pretty much. 80% of my annual income is commission based.

 

My time would be used for putting out resumes and "bonding" with the fellow top performers. Let's see, 10 people doing say $300k/ yr in sales who just quit selling would be a loss of $3,000,000. That might make them think a little.

Sorry about the position they put you in.