Here at Konsyg, we have implemented an on target earnings system, which provides bonus for contractors.
On-target Earnings refers to a contractor's pay structure made of basic salary and the additional variable component such as commission as their compensation.This is an expected pay that will be given to a contractor so that they can earn much more than the base salary.
OTE at Konsyg
Konsyg is a high performance honouring company and we want to engage and pay the high performing members of the team. To address this we have taken an initiative to introduce Bonus or On target earnings so that high performing individuals can potentially go to a structure that would enable them to earn much more than their base and fixed salary. OTE structure would open up more avenues for contractors who are looking to increase their income based on performance.
Scope and Applicability of the policy
This policy would be applicable to all contractors Konsyg.
The OTE structure is brought into being to reward the performance of contractors who are responsible to make the campaign a success. Not only that this policy would help us to recognise the star performers and help them in earning more as per their performance. The OTE structure would help in motivating contractors to perform better and outnumber their targets and thereby enabling them to earn more according to their potential and performance.
Benefits of having OTE
-Recognising potential high performers in Konsyg
-Upward earning matrix for contractors
-Having a clear understanding of what goals a sales team should hit to get rewarded for their efforts, they feel more motivated to work harder and achieve better results.
-Higher productivity. Stimulated to get a decent bonus for their work, sales reps would put more effort into fulfilling their tasks, which raises their productivity.
-Company’s growth. Feeling more encouraged to do a quality job, team members contribute to the business’s performance growth in general.
Total Salary - Your total salary would be your base pay and On Target Earnings.
Base Pay - Fixed salary paid per month
On Target Earning - Based on the targets and is above your base salary.
KPI - Key performance indicators - KPI is the deliverable measures that indicate how effectively the campaign is running and a count on how many targets are we meeting on a campaign. These will be decided by the management based on the nature of the accounts.
Key Performance Indicators (KPI)
For all new and existing contractors of the company the minimum target is to provide 3 HO/Booked meetings per week for all lead generation campaigns.
For Full sales campaigns, sales representatives need to close minimum 2 sales per month.
All new joiners will have one month to prove their performance. First review will be in 14 days and the next in 28 days.else PIP
The OTE and salary structure is based on a KPI model. The KPI are the targets that the sales reps are expected to achieve to succeed the campaign.
Please Note - Weekly/Monthly KPIs would be decided based on the nature of the accounts. The KPI would be different as per the performance, traction and nature of the accounts and will be communicated to the AM’s
A complete breakdown of the KPI are given in the figure below
Calling KPI - All callers will have to stick to a daily call KPI of 65 calls per day. In case of PIP, the number of daily calls would be 80.
OTE Break Up:
The total compensation for contractors is the total of Base + OTE.
Base - Fixed monthly pay of every contractors
OTE - On target earnings per contractors based on parameters of deliverables.
Bonus on Salary (OTE)
For every contractor who will be able to complete the monthly KPI for any campaign, then they will be entitled to roll into the OTE scheme based on their account KPI.
How will the OTE help in my upward earning?
Once a contractor achieves the weekly target for 1 week, the contractor's directs comes under the Bonus framework. The framework for upward earning given in the table below: A weekly chart of performance will be shared.
Weekly Target = 3 HO/Booked Meeting // Base Salary
Achievers Zone= 5 HO/per week/20 HO/month // 100% of OTE // Base Salary + 100% of OTE
Ninja Zone=8 HO every week //110% of OTE// Base Salary + 110% of OTE
Break the seal=3 HO in a week in 2 weeks of new account launch //105% of OTE// Base Salary + 105% of OTE
Unicorn Zone=50 HO in a quarter //150% Of OTE //Base Salary + 150% of OTE
2 sales/ per month //- //Base Salary
4 sales/Per months //100 % OTE //Base Salary + 100% of OTE
6 sales //110 % OTE //Base Salary + 110% of OTE
** All OTE amounts apart from Weekly target will be paid at the end of 3 months
For all current contractors, if in a 1 week contractors have no HO/Booked meetings, PIP will be issued to all such contractors. The duration and the KPI of the PIP would be based on the nature of the account and is up to the discretion of the committee.
For new contractors we will observe them for one month. First review on day 15 on progress, 2nd Review on day 30 on progress, If no improvement then contractors will be asked to leave.
Process of Implementation
The OTE structure will be implemented from April 2021 payroll. We will launch the OTE model in the leadership meeting to the AM’s and the AM’s can have the same percolation to the callers. The OTE model will start with the callers and then graduate to the Ops team, Team Leaders and other management. The KPI’ would be different based on the nature of job for the contractors.
Tracking of the KPI’s
A committee will be set up who will be checking the KPIs of all the campaigns once a month. The committee would have an Account Manager, Account Director, HR and Either William or Joe reviewing the KPI of each caller every week of the month and qualify the callers. A daily performance will also be shared from operations.
The review of performance would be on a monthly basis. For at the end of the month the committee will analyse the performance of every contractor and qualify them. For contractors who are already in the system their review will be at the end of the month (starting April).
For the new joiners the gestation time for review would be after 1 month of their onboarding.
For all current contractors, who are unable to meet the specific account KPI, will be put in a 2 week PIP.
Performance Improvement Plan (PIP) Process
At an event when the contractor is not able to perform the daily objectives of the position, Konsyg reserves the right to issue a Performance Improvement Plan (PIP) for the contractors.
Any contractor who does not deliver any handover for more than two weeks, will be issued a PIP by the company. The PIP plan is spread across one month and is designed to help the contractors overcome the difficulties and achieve the KPI. The stages of PIP is as follows
-Contractors are informed about the performance and an initial mail regarding the PIP is sent from HR. The first review of PIP is in 7 Days.
-Incase the contractors is not able to show any improvement, a formal PIP of 14 days is issued where all the KPI’s are written down
-The second review is held on the 15th day after formal PIP is given
If the performance of the contractors is improved and as per the KPI, the contractors are removed from the PIP. Incase after 28 days the contractor's performance is not satisfactory, the process of termination will follow.
Frequently Asked Questions
How were the KPI’s decided?
The KPI’s are decided based on the client requirements on every campaign. Konsyg is a service level company and our end goal is to deliver success to the clients. Hence, the KPI for all the accounts will be decided based on the nature of the accounts.
How would my salary be calculated
The monthly salary is the base you receive at the end of the month. Once you come into the zone of OTE the amount of OTE will be calculated based on your KPI metrics. The amount of OTE is calculated monthly and paid as a lump sum at the end of 3 months.
How will the OTE Structure be launched?
The OTE structure will get launched phase wise. Starting with the callers. In the second phase in May we will be launching the same structure for the Operations team (list builders and Ops) and then for the AM and rest of the company.
Disclaimer for non-performing / non-paying accounts
Thank you for reading through. For further assistance, do contact Suchana on Slack.
For further assistance, do contact Suchana on Slack.