How are commissions handled for your sales employee while they go out on Parental Leave?? I work for a tech startup company and we have our first seller going out on leave and I need to create our policy. Any insight or advice would be greatly appreciated!

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I would be very thoughtful in how you create your policy. If you disincentives top performers that go on parental leave it will leave a bad taste in their mouth and flat out you will lose talent.

If it’s 3 months, I would maintain their current commission level and if someone else temporarily takes over the account give that person commissions out of the profit and eat it as part of the expense of having to offer parental leave.

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^^^ I agree with this.

I wouldn’t consider this added cost as a true loss.

Not paying out the extra commission could lead to someone leaving. Replacing an employee cost 1.5-2x the salary of that role. The few months of paying extra commission is far less than replacing someone. Also, it’s just a good human decision. You’ll make the costs back with 2 happy high performing employees.

Base it on their average over the past year if you plan on continuing to compensate at that level, or a percentage of that level, during parental leave.

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And if someone is covering their book of business, would they still receive a split in this case?

Are you creating a policy for how he/she would be receiving commissions during leave? Or policy for the leave in general?

Policy for how she will receive commissions while out on leave

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