Arrow is starting to cut salespeople's salaries again. They use the "effective rate"as an excuse. Interestingly, the managers do not suffer the same fate. These are the same managers that are either afraid to "carry a bag" or just don't have the energy anymore. Arrow will to do well because they will continue to squeeze the "worker bees" to drive down costs. Meanwhile, upper management will rake in the perks and bonuses.
effective rates are a measure of productivity. Not sure why it is not fair to use that as a measuring stick. If you go back far enough you understand that the industry essentially paid it's sales force based on a commission rate of GP dollars.
Sounds like the actions are about fairness and paying for performance, something all sales reps should applaud.
That is all well and good in theory. In reality account packages are all over tha map and therfore effective rates vary wildly(Direct vs indirect, etc..). It seems management uses accounts to reward/punish individuals because the few accounts that still purchase their own product are worth more than an indirect account.