Set commission targets

What this achieves

A commission plan sets the ladder; a target sets what each person is measured against. Until a target exists for a person and a period, there is nothing for their performance to be scored against.

Required role: Administrator.

Before you start

Create the commission plan first, and check that it reaches the people you expect. The targets table lists whoever currently matches the plan’s criteria and is paid in the plan’s currency.

Steps

Go to Payroll → Commission Plans.
On the plan you want, select Set targets.
Choose the Period.
Enter each person’s target in the Target column.
Select Save targets.

What the table is measured in

The header restates the plan’s basis and currency so you are not guessing what a number means. A revenue plan asks for an amount in the plan’s currency; a units plan asks for a unit count and tells you what one unit is worth.

Example: on a GBP revenue plan at HC Corp UK Ltd, a target of 120,000 means £120,000 of revenue for the period — not a number of deals.

Rows that need attention

Two row states explain themselves and are worth understanding before you start typing.

Option	Description
Paid in a different currency	The employee is not paid in the plan’s currency, so the plan cannot reach them. They need a plan in their own currency.
No longer matches	The employee no longer meets the plan’s criteria but is kept on the table for the record, because they have history against it.

If the table says the plan reaches nobody, the plan’s criteria and currency do not currently match anyone. Adjust the plan rather than the targets.

Setting a target schedules no money

Setting a target does not schedule any payment. Commission is calculated once actual performance is recorded against these targets, and only then does a payout figure exist.

Example: giving James Whitfield’s colleague in Sales a target of £120,000 for the quarter commits HC Corp UK Ltd to nothing. If they attain £108,000, that is 90% attainment, and the plan’s ladder decides the rate that applies to it.

Coverage

The screen reports how many targets are set out of the total. Aim to finish a period before it starts, because a seller with no target has nothing to be measured against for that period and earns nothing from the plan.

Clearing a target is a deliberate action and is reported back to you separately from saving, so an accidental clear is visible.

What happens next

Once targets are in place and the period’s actual performance is recorded, attainment is calculated and the plan’s ladder produces a payout. That payout reaches a payslip according to the plan’s payout timing, paid into the earning element the plan nominates.