Compensation Plan Review........

[Instrument 41]

So our management has hired a new area manager for this region. She is 33, has only 5 years of actual experience in what we do. And is very quick to tell you about her wife and their 2 kids.
Get an email with a meeting notice for a Compensation review. This has occurred to 3 other folks, and on average they were cut but 25% but the commission rate increased by 2 points, on the profit. Not sure what the correct response should or will be. I am 59, not looking to make a change and age discrimination is a real issue.....

[masraum]

Good luck. I wonder if there's a lawyer that you can consult that can tell you what they can legally do.

[Zeke]

Lots of thoughts here but I've never faced that situation, KC can probably tell you.

[stomachmonkey]

Most of the US is at will as is Louisiana.

Given advance notice an employer can generally reduce your compensation whenever they want.

Since it's a commission role there may be something in any contract OP has signed but don't hold your breath.

The way to do this from the employee end is to counter with not a reduction in rate but a reduction in days / hours.

As in a 20% compensation reduction means a 4 day work week.

[monoflo]

Get to the Chopper!!!!

[gacook]

Originally Posted by stomachmonkey

Most of the US is at will as is Louisiana.

Given advance notice an employer can generally reduce your compensation whenever they want.

Since it's a commission role there may be something in any contract OP has signed but don't hold your breath.

The way to do this from the employee end is to counter with not a reduction in rate but a reduction in days / hours.

As in a 20% compensation reduction means a 4 day work week.

Not sure of OP's position but this may not be very doable going forward. The entire market is shifting from employee-centric back to employer-centric. Strange times ahead.

[stomachmonkey]

Originally Posted by gacook

Not sure of OP's position but this may not be very doable going forward. The entire market is shifting from employee-centric back to employer-centric. Strange times ahead.

The point is OP can't just roll over and take this.

He really has no option but to suck it up if that is what the company chooses to do so he looses nothing by negotiating something that makes it suck less.

The reduced work week results in the cash savings the company is looking to achieve so they may be receptive to it.

Now if they respond that they need OP 5 days a week then they've established his worth to the organization and he has another way to push back.

That could be a commission rate increase of 5% instead of just 2.

The basic mindset OP should have is, if my compensation is being reduced then "I am investing in the company, what is the benefit / reward to me for doing that?

Never take this stuff lying down.

[David Inc.]

Only thing to do is look and see if the commission bump is worth it and try to negotiate. If they figure you're not interested in changing jobs though it weakens your negotiating position tremendously.

[mgatepi]

Sadly in this world, "You are only worth as much as your NEXT job will pay you"
And at our age, not sure this is going to be good.

[gacook]

Originally Posted by mgatepi

Sadly in this world, "You are only worth as much as your NEXT job will pay you"
And at our age, not sure this is going to be good.

Very true. Very "first world problem" but my wife is kinda in that boat. She's performed very well over the years for her company and has been compensated in kind. She's at a point where she wants to do something else but she can't find a position that'll pay anywhere near what she's currently making...so feels "stuck."

[mgatepi]

Originally Posted by gacook

Very true. Very "first world problem" but my wife is kinda in that boat. She's performed very well over the years for her company and has been compensated in kind. She's at a point where she wants to do something else but she can't find a position that'll pay anywhere near what she's currently making...so feels "stuck."

Yep the "Ole Golden Handcuffs"

[stomachmonkey]

Originally Posted by David Inc.

Only thing to do is look and see if the commission bump is worth it and try to negotiate. If they figure you're not interested in changing jobs though it weakens your negotiating position tremendously.

It doesn't really weaken his position.

The company is in cost containment mode which is never a great sign.

They company can do a right size and lay people off and that may still happen but letting people go costs money.

The company is fully aware that salary reductions will cause some staff to leave on their own and in fact are counting on it. People who quit don't get severance, it's cheaper.

The company will deal with each person individually and decide whether to let them leave or make an effort to retain those they deem valuable.

Unless you know you are an invaluable rockstar threatening or intimating you would quit is not a place to negotiate from as they are more likely to call your bluff. Remember, they are counting on people leaving.

[gacook]

Originally Posted by stomachmonkey

It doesn't really weaken his position.

The company is in cost containment mode which is never a great sign.

They company can do a right size and lay people off and that may still happen but letting people go costs money.

The company is fully aware that salary reductions will cause some staff to leave on their own and in fact are counting on it. People who quit don't get severance, it's cheaper.

The company will deal with each person individually and decide whether to let them leave or make an effort to retain those they deem valuable.

Unless you know you are an invaluable rockstar threatening or intimating you would quit is not a place to negotiate from as they are more likely to call your bluff. Remember, they are counting on people leaving.

Very valid points, SM.

One of the reasons I'm glad to be a fed employee...I'll never get rich here but I'm damn comfortable and ya can't beat the security.

[Arizona_928]

Age discrimination.

That schit is illegal.

[Instrument 41]

Well I got it the rear. Cut my salary by 30% and commission of only 8% on the profit. Take it or leave and that's it. Said it didn't matter what experience I bring the the table, its all based on their budget for the territory. The resume is getting hot.....crap..

[masraum]

Originally Posted by Arizona_928

Age discrimination.

That schit is illegal.

Unless they say "we're gonna can yer azz cuz yer old", I think it's pretty hard to prove.

[Jeff Hail]

Originally Posted by stomachmonkey

The point is OP can't just roll over and take this.

He really has no option but to suck it up if that is what the company chooses to do so he looses nothing by negotiating something that makes it suck less.

The reduced work week results in the cash savings the company is looking to achieve so they may be receptive to it.

Now if they respond that they need OP 5 days a week then they've established his worth to the organization and he has another way to push back.

That could be a commission rate increase of 5% instead of just 2.

The basic mindset OP should have is, if my compensation is being reduced then "I am investing in the company, what is the benefit / reward to me for doing that?

Never take this stuff lying down.

Nailed it. I know a lot of HR folks and owners that would serious reflect on that.

[Instrument 41]

what they are doing is putting lipstick on a friggin pig to make things look attractive for a new buyer. They go around buying 3 legged dog companies so it can raise that EBIDA number. Easier to buy weak companies and pull their numbers in to make the entire thing look enticing.

[gacook]

Originally Posted by Instrument 41

Well I got it the rear. Cut my salary by 30% and commission of only 8% on the profit. Take it or leave and that's it. Said it didn't matter what experience I bring the the table, its all based on their budget for the territory. The resume is getting hot.....crap..

Damn, man...sorry to hear.

[911boost]

First off I am really sorry to hear it.

I debated starting a separate thread on this back in February when it happened, but after 26 years my employer did a "job realignment", the three individuals in my position that made the most for the company and hence were paid the largest bonuses were "job eliminated". All of us were over 45 and represented a growing list of experienced individuals this new "President" has let go to hire cheaper talent from outside the industry.

I was crushed, I had put my heart and soul into that company, when I stated the group that I was in we were about $100M in revenue and last year were $1.4B.... It didn't matter, if you weren't one of the chosen few and played tennis like the CEO and his minions, you were looked down upon. The days of making your numbers (I exceeded prior year profit by almost 30%) were gone, and the do as I say and not as I do crowd are leading that company into the toilet.

I have just started with a new company and could not be happier.

Hang in there and LinkedIn is your friend right now.