Reasons Salespeople Don’t Trust Their Commission Statements

When you hear about commission disputes, it is really easy to assume there is a disagreement over the math. Perhaps that is the case here and there, but really, it isn’t the most common reason.

In many instances, the lack of trust started long before payout. It is more of a feeling that builds in the rep over time until one day they say it out loud:

“I don’t think this is right.”

Once that thought occurs, the damage has been done, and the path to rebuilding trust will be long.

From everything I’ve seen over the years, there are a few specific reasons this happens. They aren’t difficult to resolve; they just require attention to detail.

1. The Logic Isn’t Obvious

This is the simplest issue to resolve. If your rep needs a graphing calculator, first 19 digits of pi, and a constellation chart to follow their commission calculation, your plan logic is far too complex. Complex only leads to confusion and confusion breeds distrust.

At the end of the day, it doesn’t matter if the commission calculations are correct. The rep can’t understand or follow it. It might as well be incorrect at that point.

Simplicity and clear logic build trust.

2. Statements Arrive Late

Statement timeliness is key when it comes to commission. Statements arriving weeks after pay has already been received immediately calls into questions whether everything is correct.

To build trust and transparency, it is paramount to give reps a chance to review their statements as early as possible. In many instances, it may be difficult to implement rep view prior to payroll submission within current processes. That is often the reason companies choose not to do it since it would require a complete process revamp.

Quick and timely statements feel intentional while ones that arrive late create questions.

3. Exceptions Become Normal

One here and there makes sense; business can be messy at times.

Once exceptions become a part of the norm though, that changes things. Your reps start to see payouts as less of a rule-based system and more of a leadership judgement-based one. Before long, reps begin to request more and more “adjustments” to their deal for one reason or another.

That is a dangerous transition; once people start believing payouts are discretionary, suddenly every line item in every statement is opened up to negotiation.

4. Numbers Change After the Fact

Retroactive adjustments, even the valid ones, are a quick way to lose trust.

Unfortunately, adjustments are a reality that will always be there. Sometimes you just can’t avoid them. For reps though, the psychological perspective is different that the logic the ops team is following. They end up feeling like the rules were changed on them after the game was played.

The more often numbers change after statements go out, the harder it will be to maintain confidence in future ones.

5. Transparency in Data

You give your reps a quota. You issue them a sales compensation plan. You tell them to get out there and sell. But midway through the quarter, they have no idea where they are at because they don’t have a report or dashboard to see all the deals they have closed.

This isn’t a common issue I see, but surprisingly, it is an issue that does exist sometimes.

You can’t expect a rep to understand anything else if they don’t have access to something that tracks their deal data.

And if you do expect it, are you really getting the most out of your rep?

Final Thoughts

A good commission plan is simple, follows a strict logic, and uses transparent data.

Statements are timely, plan logic is clearly displayed, and there is a basic layer of deal data included.

You don’t see adjustments or exceptions littered across the statement, but there is a space specifically for them.

When those things are true, reps don’t spend time wondering whether or not their statement is correct.

They just assume it is.

That assumption is one of the strongest signals that your sales compensation program is working exactly the way it should be.