Print the value of index0
  • Report:  #605010

Complaint Review: Sales Resource Group

Sales Resource Group David Johnston This Company Sold Us The Worst Compensation Program In Our Industry, Internet

  • Reported By:
    Ripped in California — Eveywhere California United States of America
  • Submitted:
    Wed, May 19, 2010
  • Updated:
    Thu, June 10, 2010

Our employer Raymond Handling Concepts based in Fremont, CA. contacted David Johnston, President of the Sales Resource Group to create a new sales compensation plan for the sales department. What we received was the worst, most inappropriate plan in the industry. As opposed to being motivated we feel we are being punished for the recent recession. The goals put forth are unachievable and will leave us with half of the income we would have made under our old compenation program. This man peddled us a bottle of poison that would only serve to satisfy a short term thinking accountant.

In addition to the compensation program Mr. Johnston sold our employer an ongoing software and consuliting service which is undependable and not responsive to our needs. Many of us had our passwords voided only to have "the box pop" online up saying "Your password has been reset, we have sent you an e-mail with your new password". An e-mail that never arrives.

Mr. Johnston does not only not know what is customary compensation for our industry in the area but is ignorant about pertinent things such California Labor Code requiring we are reimbursed for vehicle expenses. This is evident by the way our vehicle allowances disappeared in our new compensation package forced upon us in January of 2010.

Our recommendations for those considering the services of the Sales Resource Group do so only if you want your sales department:

Angry,deresssed, demotivated and forced into looking for work elsewhere.

This man clearly has no clue as to write a program that compensates sales forces for high dollar, capital purchases with long delivery times. This is evident by the way he set up the program to chart on a monthly basis when our product will not likely invoice for three months or more after the date of order. The plan he sells may work in Canada but most certainly will not on the West Coast of the United States.

The program was supposed to increase our motivation sell our prime product which during these times carries very low margins however we are only compensated on gross profit and on a monthly basis and with a very high "threshold" which is three times the amount our "salary" (as he words it) in actuality it is draw that we pay back three times the amount of our draw and receive commissions only on the amount above the salary. Uh...Mr. Johnston...it's real simple we are salespeople...we sell something we get paid something...easy isn't it? So we only go after high margin quick close items and pray we get enough volume to get any commission at all. Oh..and our high profit products...we get compensated on only 50% of the profit (if we make our "threshold" of course). Hey David, do you pay back your "salary"? This guy and this program is a joke.

Save your money and your salesforce folks.

UPDATE:

Our employer Raymond Handling Concepts based in Fremont, CA. contracted David Johnston, President of the Sales Resource Group to create a new sales compensation plan for the sales department. What we received was the worst, most inappropriate plan in the industry. As opposed to being motivated we feel we are being punished for the recent recession. The goals put forth are unachievable and will leave us with half of the income we would have made under our old compenation program. This man peddled us a bottle of poison that would only serve to satisfy a short term thinking accountant. In addition to the compensation program Mr. Johnston sold our employer an ongoing software and consulting service which is undependable and not responsive to our needs. Many of us had our passwords voided only to have "the box pop" online up saying "Your password has been reset, we have sent you an e-mail with your new password". An e-mail that never arrives. Mr. Johnston does not only not know what is customary compensation for our industry in the area but is ignorant about pertinent things such the California Labor Code requiring we are reimbursed for vehicle expenses. This is evident by the way our vehicle allowances disappeared in our new compensation package forced upon us in January of 2010. Our recommendations for those considering the services of the Sales Resource Group do so only if you want your sales department: Angry,deresssed, demotivated and forced into looking for work elsewhere. This man clearly has no clue as to write a program that compensates sales forces for high dollar, capital purchases with long delivery times. This is evident by the way he set up the program to chart on a monthly basis when our product will not likely invoice for three months or more after the date of order. The plan he sells may work in Canada but most certainly will not on the West Coast of the United States. The program was supposed to increase our motivation sell our prime product which during these times carries very low margins however we are only compensated on gross profit and on a monthly basis and with a very high "threshold" which is three times the amount our "salary" (as he words it) in actuality it is draw that we pay back three times the amount of our draw and receive commissions only on the amount above the salary. Uh...Mr. Johnston...it's real simple we are salespeople...we sell something we get paid something...easy isn't it? So now we only go after high margin quick close items and pray we get enough volume to get any commission at all. Oh..and on our highest profit producing products...we only get compensated on 50% of the profit (if we make our "threshold" of course). Hey David, do you pay back your "salary"? This guy and this program is a joke. Save your money and your salesforce folks this guy is huge waste of time and motivation killer.

1 Updates & Rebuttals


Steve Raymond

Fremont,
California,
United States of America

An Alternate View

#2Consumer Comment

Mon, May 24, 2010

After reading this posting, I am both disappointed and personally hurt by this persons remarks.  We have worked hard over the past 23 years to establish and maintain an open culture where people are encouraged to communicate freely.  This feels like a drive-by assault not only on Sales Resource Group, but also on Raymond Handling Concepts and me personally.


 


Although there are a number of malicious factual errors in what was posted, I will respond only to the most egregious of them.  First, the sales compensation plans that we had been using through 2009 were outdated, ineffective, and unfair to both our sales representatives and the Company.  We contracted with Dave Johnston and Sales Resource Group to develop a plan that would address these inequities and realign our compensation with our business strategy.  The new program has done that to a great degree.  Features were added in the new program to reward sales reps for winning business in new areas and some features were changed to reduce the rewards because of changes in our industry and the projected economic environment.


 


When we implemented the plan at the beginning of 2010, we knew that it was imperfect and would need to be reviewed carefully as we went through the first several months.  At that time, we said that we wanted to go through the first six months collecting feedback and evaluating the plan.  After six months, we committed to review the feedback and the overall results of the plan and make appropriate changes.  As issues have been brought to our attention, we have addressed them in two ways:


 



  1. If there is a clear mistake in either the payment of a commission that was earned or in the intent of the program to reward performance, we have corrected those mistakes as quickly as possible after they are brought to our attention.
  2. If there is a misunderstanding of how the program works or how a commission is calculated, we have tried to thoroughly investigate to make sure it was calculated correctly.  Then we explained the process to each individual until he/she understood how it works.  In these cases, sometimes once the person understood the program, the problem was cleared up.

 


In some cases there have been sales reps who do not like the way the plan rewards them compared to the old plan.  We are collecting this feedback for the mid-year review.  Some changes will undoubtedly be made after the review to improve the plan.  Additional changes will probably be made before going into 2011 and beyond.  Whether any of this particular individuals complaints about the plan will be changed to his or her satisfaction, I can not say.  I suspect this person was benefiting from some of the inequities contained in the old plan, so its possible that a new employment experience for this person would improve the situation for everyone.


 


In closing, let me say that our experience with Sales Resources Group has been professional, helpful, and positive.  Any dissatisfaction on the part of our sales reps was likely caused by our poor job of implementing the plan and communicating well with our reps during the last several months.  This is entirely the responsibility of the Raymond Handling Concepts Management Team and me, and for that I am personally very sorry.  We promise to try to do a better job going forward as we continue to review and improve this plan in best interests of all of our employees and the Company.


 


Steve Raymond, President


Raymond Handling Concepts Corporation

Respond to this Report!