Paying Commissions: Is shifting to monthly vs quarterly worth it?
by Shirah Smail
Nov 14, 2024

When creating sales incentive plans, a common question brought up is shifting the timing of payments. An organization maybe paying sales incentives quarterly, but have the desire to shift to monthly payments. The main driver behind this is to drive sales earlier on in the quarter. Now this may seem like a reasonable solution to the challenge of the hockey stick graph most of us see in sales. However, will it lead to the results we desire? Well, there are two things you may want to consider.
- Administration
- Company factors
Before presenting an offer to a salesperson, think - is your company being fair in their decision making? If not, it may cost you. In August of 2025, the owners of a certain automobile dealership had to pay $275,000 (+ other relief) to settle a U.S. EEOC lawsuit related to their hiring process.
So, what happened?
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