[tock]

> Just because we can measure a sales person’s contributions in dollar amounts does not mean we must measure it in dollar amounts.

This is the fairest form of compensation. It's unfortunate that engineering contribution cannot be measured the same way. If we could engineers would all be getting a nice pay hike.

[tshaddox]

It's still just a market. You've got to make offers that people will accept. It's mostly silly to try to come up with some objective theory of value, except in the context of what potential employees will consider to be fair, which is right back at "you've got to make offers that people will accept."

Basing compensation on supposedly objective things like "the dollar amount a sales person brought in" might be important to a given pool of potential employees, but resist the temptation to think of it as objectively determining the value of the employee's work. Remember that all you're doing is making offers that people will accept.

[tock]

I agree. But if employees know their objective value I believe it will change what they will consider an acceptable offer.

[yencabulator]

Only if the salesperson also implements & supports the things they sell. Selling false promises of something the rest of the organization has to fulfill is not fair -- but that's the way to the biggest commission!

[ghaff]

And many would be getting let go because they weren't meeting some number.

[tock]

Companies already do layoffs without commissions. They are always optimising to reduce salaries and increase profit margins. And its not "some number". Its the amount of $ brought in. Thats what companies care about.

[ghaff]

Yes, but sales reps have very specific targets and sales managers have no problem routinely letting people go if they miss those targets. It really is a somewhat different situation from engineering--although projects, for example, certainly get canceled and teams let go. There's a more direct correlation to quarterly revenue/margin input in the case of sales.

[tock]

But its a more transparent system. Right now no-one has any idea if they get laid off or if they are being underpaid. I think the overall compensation would likely go up if you are good at your job.