Sales-PES and Commission pay


Good morning. I haven’t spoken to you for a while but I have two concerns I want to bring to your attention. One is on the Commission Compensation for Sales that Cliff Rucker announced recently and the other is on the absolutely incredulous situation in Sales where NO ONE knew how their 2014 PES was determined and this situation appears to be on a repeat track for the 2015 PES. Please reply with NAPS’ position on both. Below is the background:

1. Commission Based Pay Pilot Coming to Sales in 2015

At the Sales Qtr 2 Town hall Meeting webinar, Cliff Rucker announced that he intends to bring Commission Based compensation to Sales. He was very specific about his timeline, saying he is on schedule to implement a Pilot with a limited Sales group later this FY and to have a full scale commission plan by FY 2017. It appears this is a done deal. What is NAPS’ position on Commission-based pay for Sales?

I have received many calls from Sales people asking if I knew if NAPS was in support of this change in compensation rules. This is a major change in pay rules affecting hundreds of EAS employees and it appears Sales is going full speed ahead with it. We have many questions on it, for example:

-Where is the proposal that Sales developed and presented to NAPS for input? Was research and specific data included? How did NAPS validate the proposal?

-What was the rationale supporting the need to change the present pay system?

-What are the expected benefits not presently being obtained?

-What are the details on the pilot?

- What were the concerns NAPS voiced? Was there a survey sent out to Sales members for input?

There is much concern about this in the field and NAPS needs to hear it. This commission based pay is a surprising move because Cliff also said that we recently replaced the old CRM (Customer Relationship Management platform) called Customer First, (mainly due to it having so many problems --all our merit determinations for the past 11 years were based on this “problem-prone” Customer First system ) and the replacement, Panorama, while functional, is still unable to fully integrate with our payment systems. How accurate and transparent can the 2015 Commission-based pilot be under these types of situations? Bottom line: Has this proposal been fully scrutinize by NAPS and Sales from the prospective of the EAS employee it will effect now, and the precedent it will set for other EAS employee in the future? If so, how so? Please reply.

2. 2014 PES Confusion

A major issue that NAPS must address with Sales is the overwhelming number of Sales personnel who remain to this day unaware of how they 2014 PES merit was determined. Most were under the impression that their personal sales was a determining factor. Most don’t understand how their units were determined and by whom and when. This type of mass miscommunication and lack of transparency in PES cannot be repeated. It is unacceptable for Sales to not be forthright about the specifics of PES with the sales personnel. NAPS should request Sales explain the 2014 PES determinations and methodology and the lack of accurate information to personnel.

Also, for the current 2015 PES, NAPS needs to ensure the correct information is disseminated to all in Sales as early as possible. We are almost at the end of Qtr 2, and no one speaks about PES or how it will be determined. All we get is the unofficial revenue goals we measure weekly, monthly and quarterly, just like the ones last year that ended up not being the determining factors. It is in NAPS jurisdiction to hold Sales accountable for the obligation to transparently implement PES rules and methodology both for 2014 and more so for the current 2015, that appears to be on track for a repeat of 2014 bait and switch determining factors.

Louis, I will appreciate your response to my concerns about PES and the inquiries about the Commission based pay proposal. Thank you.

,member of NAPS