Dealers Have to Stop Changing Pay Plans When They Are Successful!

Derrick Woolfson

Have you ever had your pay-plan changed because you were making to much money? The idea that if you are that good then hitting these new "objectives" should not be an issue? This is the worst morale tactic to use and can cause high turn-over. The more money your employees are making the more money the dealer should be making. The other issue with this methodology is that there will be both great and excellent months. So to expect your employee to hit it out of the park every month - having changed the pay plan to reflect the highest achievements possible - is not always realistic. 

How do you handle the changing of payment plans? Has your pay plan been changed because you made to much money? 

 

Drawyne Smith

You can choose to make higher payments if you can afford it while you are in an IDR plan. This means that it will usually take more time to pay off your loans, but this is better than Parent PLUS borrowers are not eligible for any of the IDR plans, recalculation of your monthly payment due to change in circumstances.

Derrick Woolfson

Huh? 

Jason Volny

I heard a great saying the other day "people are not afraid of changes, they are afraid of loss." Compensation needs to drive results, if it doesn't, it needs to be changed. However, changing it for the sake of reducing costs is a bad idea. It will harm a dealer long term.

I don't think there is a good way to handle a pay plan change. The only thing I would recommend is to keep your head up, being down about it is not going to help you either. Be empathetic, put yourself in the dealer's shoes, what are they trying to accomplish? If you're working for a good organization, there should be a good reason for it other than reducing costs. If it's not a good organization, find a good one, this won't be the last time they will disappoint you. 

Mark Rask

this so disruptive

Martins Ville

The best sales people go where the most money can be made, in most sales industries.

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