Handbook: shared commission and bonus payment steps

nuxt/content/handbook/marketing/sdr.md

@@ -47,8 +47,8 @@ month. The per-meeting bonus ramps up exponentially with each additional
 meeting until it reaches the cap $C$ at the $M$-th meeting, after which every
 further meeting is paid at the cap.
 
-For payout timelines and submission requirements, see
-[Processing non-commission Bonuses](/handbook/operations/commission-payment/#processing-non-commission-bonuses).
+The process and tasks for paying out this bonus are described in the Operations
+handbook, under [Processing Bonuses](/handbook/operations/commission-payment/#processing-bonuses).
 
 #### CRM Hygiene
 

nuxt/content/handbook/operations/commission-payment.md

@@ -1,18 +1,24 @@
 ---
-title: "Commission Payment"
+title: "Commission and Bonus Payment"
 ---
 
-# Commission Payment
+# Commission and Bonus Payment
 
 FlowFuse has some employees that are compensated through a bonus or commission
 structure. This structure reduces their base compensation, and rewards them when
 goals are met and for taking a risk with their base compensation.
 
+How each commission or bonus is calculated depends on the role, and is described
+in [Processing Sales Commission](#processing-sales-commission) and
+[Processing Bonuses](#processing-bonuses). Verifying the numbers, getting the
+team member's agreement, the payout currency and wiring the money work the same
+for every role, and are described once in
+[Shared steps for commissions and bonuses](#shared-steps-for-commissions-and-bonuses).
+
 ## Processing Sales Commission
 
 The company processes the commission payment for sales reps on a monthly basis
-to create a short feedback loop between closing and the reward. Currently that's
-a very manual process, some day to be moved to a Node-RED workflow. Follow the
+to create a short feedback loop between closing and the reward. Follow the
 next steps to process the commission calculations and setup for payment.
 
 Note: all sales commissions are advances under the assumption customers pay the
@@ -77,22 +83,17 @@ payment for.
 
 Do not manually override any formulas in the commission tab, make sure that all calculations should be driven by the sheet's logic.
 
-Copy the relevant details for the employee into an email and tell them what
-their performance was like and what commission they'll receive. It's important
-to get a written agreement to the commission number. 
-
-The email should be sent to the team member's personal email address so they retain access to the commission confirmation post-employment, as compensation records are considered personal. Make sure the CEO and the manager of the team member receiving the bonus both receive a copy by including them in the cc on the email.
+Copy the relevant details for the employee into an email using the
+[template below](#email-template-that-should-be-used), telling them what their
+performance was like and what commission they'll receive, and get their
+agreement as described in [Getting agreement](#getting-agreement).
 
 ### Additional Notes for Commission Processing
 
-To avoid errors, copy and paste all numerical amounts directly from the spreadsheet whenever possible instead of typing them manually. Carefully double-check all details before saving the email as a draft. Once the draft is finalized and verified, inform the CEO that it is ready for review and sending. 
-
 After processing commission, update the Ops Plan spreadsheet (AE productivity tab) with the finalized commission details.
 
 Add this task as a recurring calendar reminder on the first Monday or Tuesday of each month.
 
-If an employee did not close any deals that month, use the values of zero and send them an email for confirmation.
-
 ### Email template that should be used:
 
 Subject line: `Commission for [Month] [YYYY]`.
@@ -108,7 +109,7 @@ In the aforementioned period, you closed:
 - [Y] number of deals
 - [cARR] new Contracted ARR
 
-Your commission is USD $[XX].
+Your commission is [currency] [XX].
 
 Please remember: FlowFuse might withhold commission payments, or claw back
 payments if payments aren't made within 60 days after the quote is signed.
@@ -122,43 +123,51 @@ Best,
 
 ### Update Sales Representative Productivity
 
-Once commission numbers are finalized for the month, rep productivity should be updated in the Ops Plan spreadsheet using the finalized data.
+Once commission numbers are finalized for the month, rep productivity should be
+updated in the Ops Plan spreadsheet using the finalized data.
 
-### Wiring the money
+Once the sales rep has agreed, pay the commission as described in
+[Wiring the money](#wiring-the-money).
 
-If the employee agrees to the commission, process the payment in Deel as USD payment.
-Sign into Deel and browse to the profile of the commission receiver. For contractors
-the commission is a **Payment Adjustment**, and mark it as a **commission** payment not as a bonus.
-For EOR team members, you'll need to add an item under "Payments and Submissions" manually.
-For PEO team members, include them in the next regular payroll cycle. 
-1. Go to Payroll in the left navigation menu and select Payroll cycles.
-2. Under the Active tab, locate the relevant pay period and click Review on the cycle row. If the most active payroll is already completed, go to the upcoming payroll cycle. 
-3. In the employee pay review table, find the employee, click the three dots, and click "add item"
-4. Pick commission from the drop-down and enter the amount. 
-5. Complete the review steps and select Submit Report before the cut-off date (5 days prior to payday).
+## Processing Bonuses
 
-In both cases be explicit about this being a bonus or commission for achievements for a certain 
-time period and what the achievement was.
+A bonus isn't a commission. A commission is a percentage of the value of a
+deal that's booked and yielding revenue, and only sales reps earn one, under the
+terms of the [Sales Compensation Plan](/handbook/sales/commission-plan/). A bonus
+is paid for reaching goals agreed up front, and its amount follows from how far
+those goals were reached rather than from the value of any single deal. As the
+goals differ per role, so do the period a bonus is calculated over and the
+numbers needed to verify it:
 
-## Processing non-commission Bonuses
+| Bonus | Based on | Period |
+| ----- | -------- | ------ |
+| [CSM bonus](#processing-the-csm-bonus) | Total portfolio performance (NRR), see [Customer Success Bonus Structure](/handbook/sales/customer-success/#customer-success-bonus-structure) | Quarterly |
+| SDR bonus | First Meetings, see [SDR Bonus Structure](/handbook/marketing/sdr/#bonus-structure) | Monthly |
+| [MBO bonus](#mbo-bonuses) | Goals agreed between the employee and their manager | Quarterly |
 
-FlowFuse processes other bonuses on a quarterly basis. These bonuses are agreed upon between the employee and their manager.
+### MBO Bonuses
+
+MBO bonuses are agreed upon between the employee and their manager.
 
 At the start of each quarter, the employee should send an email to both their manager and the CEO outlining the agreed goals and bonus structure. The manager must reply to that email confirming the agreement. This ensures that all parties have written confirmation of the goals and conditions.
 
 All goals must be achieved within the agreed quarter. Data or outcomes generated outside of the quarter will not be counted toward the results, even if reports need to be finalized or generated after the quarter has ended. Some reporting may require data collection after the quarter, but this does not extend the performance period.
 
-When the goal has been fully achieved or the quarter has ended with results within the agreed performance threshold, the employee should send a follow-up email to both their manager and the CEO summarizing the achieved outcome.
-
-The bonus payment will be included in the next payroll after the goal completion or report is submitted.
+When the quarter has ended, the Chief of Staff and the Operations team verify the
+achieved outcome against the agreed goals, and send the bonus calculation to the
+employee for agreement, following the
+[shared steps](#shared-steps-for-commissions-and-bonuses). The bonus is paid in
+the next payroll after the employee has agreed to the calculation.
 
-## Processing CSM Commission
+### Processing the CSM Bonus
 
-Following the end of each quarter, the Operations team processes CSM commissions based on the performance metrics outlined in the [CS Handbook](/handbook/sales/customer-success/).
+Following the end of each quarter, the Operations team processes CSM bonuses
+based on the portfolio performance metrics outlined in the
+[CS Handbook](/handbook/sales/customer-success/#customer-success-bonus-structure).
 
-### Verifying Deals Before Handoff
+#### Verifying Deals Before Handoff
 
-Before passing the commission workbook to the sales rep for confirmation, verify
+Before passing the bonus workbook to the CSM for confirmation, verify
 each deal in the workbook against HubSpot. Complete the following checks:
 
 1. **Account name** - Confirm the account name matches between the workbook and HubSpot.
@@ -171,17 +180,82 @@ differently and must not be combined in a single line.
 Flag any figure that isn't shown in HubSpot (e.g., highlight the cell) and confirm
 it with the relevant sales team member before finalizing sheet.
 
-### Payout Timeline & Submission
+#### Payout Timeline & Submission
 
-1. Submission: CSMs must complete and submit the Commission Calculation [Template](https://docs.google.com/spreadsheets/d/1QruPv_EmC3o0OPTipSxqKIWy0mMxMB8asWupdA8N_X8/edit?gid=1622984334#gid=1622984334) by the 5th business day of the new quarter. Duplicate the workbook and complete the necessary fields following the legend. 
-2. Validation: Operations will cross-reference the template against HubSpot data, specifically verifying the Effective Dates for all transactions.
-3. Payment: Once validated, commissions are included in the next available payroll cycle.
+1. Calculation: by the 5th business day of the new quarter, the Operations team completes the Bonus Calculation [Template](https://docs.google.com/spreadsheets/d/1QruPv_EmC3o0OPTipSxqKIWy0mMxMB8asWupdA8N_X8/edit?gid=1622984334#gid=1622984334) for each CSM. Duplicate the workbook and complete the necessary fields following the legend.
+2. Validation: the Chief of Staff and the Operations team cross-reference the template against HubSpot data, specifically verifying the Effective Dates for all transactions, then send it to the CSM for [agreement](#getting-agreement).
+3. Payment: Once agreed, the bonus is [wired](#wiring-the-money) with the next available payroll cycle.
 
-### Data Requirements
+#### Data Requirements
 The calculation template must include:
 - Company Name & Transaction Amount (ARR Delta).
 - Notice Date: When the customer informed us of the change. Or when we actually closed won the change in HubSpot
 - Effective Date: When the change actually takes place in the contract.
 
-### Currency of Payout
-Commission is paid in the currency specified in your initial employment contract (e.g., USD or EUR). _Note: Please confirm your specific payout currency with the Operations team during your first quarter._
+## Shared steps for commissions and bonuses
+
+These steps apply to every commission and bonus, whichever role it's for.
+
+### Independent verification
+
+Every commission and bonus FlowFuse pays, for any role, is verified
+independently before it's paid:
+
+1. After the period a commission or bonus is calculated over ends, the Chief of
+   Staff and the Operations team independently verify the numbers for every
+   achieved commission and bonus.
+1. The Operations team then reaches out to each team member with their
+   commission or bonus calculation, and asks for their agreement in writing.
+1. Once the team member agrees, the payment is filed in Deel and paid out as
+   expected.
+
+It's important for the company to validate these numbers independently, rather
+than starting from numbers reported by the person being paid. There's no need
+for a sales rep, or anyone else in a role with a commission or bonus, to send
+their own numbers ahead of this to preempt the discussion: wait for the
+calculation, and raise anything that doesn't match your own records when
+replying to it.
+
+The role-specific sections above describe which numbers are verified for each
+type of commission and bonus.
+
+### Getting agreement
+
+Send the calculation to the team member by email, and get their agreement to the
+numbers in writing before anything is paid.
+
+- Send it to the team member's personal email address, so they retain access to
+  the confirmation after their employment ends, as compensation records are
+  considered personal.
+- Include the CEO and the team member's manager in cc.
+- To avoid errors, copy and paste all numerical amounts directly from the
+  spreadsheet whenever possible instead of typing them manually. Carefully
+  double-check all details before saving the email as a draft. Once the draft is
+  finalized and verified, inform the CEO that it's ready for review and sending.
+- If nothing was achieved in the period, still send the zero calculation for
+  confirmation.
+
+### Currency of payout
+
+Commissions and bonuses are paid in the currency specified in the team member's
+initial employment contract (e.g., USD or EUR). _Note: team members should
+confirm their specific payout currency with the Operations team during their
+first period._
+
+### Wiring the money
+
+Once the team member has agreed, process the payment in Deel, in the
+[payout currency](#currency-of-payout). Sign into Deel and browse to the profile
+of the receiver. For contractors, a commission is a **Payment Adjustment** marked
+as a **commission** payment, and a bonus is added under **Bonuses and
+Incentives**.
+For EOR team members, you'll need to add an item under "Payments and Submissions" manually.
+For PEO team members, include them in the next regular payroll cycle. 
+1. Go to Payroll in the left navigation menu and select Payroll cycles.
+2. Under the Active tab, locate the relevant pay period and click Review on the cycle row. If the most active payroll is already completed, go to the upcoming payroll cycle. 
+3. In the employee pay review table, find the employee, click the three dots, and click "add item"
+4. Pick commission or bonus from the drop-down, matching the payment, and enter the amount. 
+5. Complete the review steps and select Submit Report before the cut-off date (5 days prior to payday).
+
+In all cases be explicit about this being a bonus or commission for achievements
+for a certain time period and what the achievement was.

nuxt/content/handbook/peopleops/compensation.md

@@ -57,7 +57,9 @@ Important Note: To maintain equity and budget alignment across FlowFuse, no comp
 ## Sales Commissions
 
 FlowFuse pays out commissions to sales reps, the terms of which are to be found
-in the [Sales Compensation Plan](/handbook/sales/commission-plan/).
+in the [Sales Compensation Plan](/handbook/sales/commission-plan/). The process
+and tasks for paying them out are described in the Operations handbook, under
+[Processing Sales Commission](/handbook/operations/commission-payment/#processing-sales-commission).
 
 ## Performance Review
 
@@ -210,14 +212,16 @@ The baseline is only used to determine the growth and is not included in the att
 
 
 ## Bonus Review (End of Period)
-* Within 5 business days after period end, the employee sends a final MBO summary to the Manager covering:
+The process and tasks for paying out bonuses are described in the Operations
+handbook, under [Processing Bonuses](/handbook/operations/commission-payment/#processing-bonuses).
+
+* Within 5 business days after period end, the Chief of Staff and the Operations team verify the results against the agreed MBOs, covering:
   * Bonus period (quarter or dates)
   * Agreed MBO goals
   * Results achieved per goal
   * Completion status
   * Supporting artifacts or links
-* The Manager sends reminders at period end and 2 business days before the deadline, if needed.
-* The Manager reviews the submission and confirms:
+* The Manager reviews the verified results and confirms:
   * Thresholds met
   * Attainment percentage (if applicable)
   * Final bonus amount for CEO approval
@@ -234,15 +238,15 @@ Only results achieved within the defined period are considered, even if reportin
 
 ## Processing the Bonus Payment
 Once approved in writing by the CEO:
-* Process the bonus in Deel:
-  * Contractors: add as Bonuses and Incentives
-  * EOR employees: add under Payments and Submissions
+* Process the bonus in Deel, as described in
+  [Wiring the money](/handbook/operations/commission-payment/#wiring-the-money)
 
 * Clearly label the payment as a Bonus, including:
   * Performance period (e.g. “Q4 2025”)
   * Reason for payment (e.g. “Quarterly MBO attainment”)
 
-Bonuses are paid out in USD and in the next payroll cycle after approval.
+Bonuses are paid out in the next payroll cycle after approval, in the
+[payout currency](/handbook/operations/commission-payment/#currency-of-payout).
 
 ## Template Email — Bonus Confirmation to Employee
 

nuxt/content/handbook/sales/commission-plan/index.md

@@ -136,6 +136,8 @@ Draws and Advances: The Company may in its sole discretion provide a Non-Recover
 
 Pay Days: The Company will pay earned Incentive Compensation, including Earned Commissions, in the final pay cycle of the payroll period following that in which it was earned. (In all events, earned Incentive Compensation, including Earned Commissions, will be paid no later than March 15 of the year following the end of the calendar year in which such payment was earned).  Booking Advances, if any, are generally advanced within 30 days (2nd pay cycle of each month) after the close of the month in which the booking date for such sale occurred. (Notwithstanding the foregoing or anything in the Plan to the contrary, to the extent Booking Advances are advanced, they will be paid no later than March 15 of the year following the end of the calendar year in which the sale was Booked.)
 
+[The process and tasks for paying out commissions are described in the Operations handbook, under [Processing Sales Commission](/handbook/operations/commission-payment/#processing-sales-commission).]
+
 Advance of Commissions:  The Company may in its sole discretion advance commissions prior to the date upon which they are Earned. Booking Advances are subject to a chargeback if payment is not received within ninety (90) days of the booking date of the order, or 30 days after the payment term was due, whichever date is later.  The Company may determine, in its sole discretion, that Booking Advances will no longer be available and Commissions will instead be paid when Earned in accordance with the timing of payment rules above for Earned Commissions.
 
 Overpayment. The Salesperson acknowledges that in the event of an inadvertent overpayment, or in the event that commissions advanced to Employee exceed Earned Commissions as of the Salesperson’s termination date, he or she will owe the overpaid amount as a debt to the Company, and will repay that debt by personal check or equivalent instrument. The Salesperson further acknowledges and understands that a failure to return the overpayment may result in legal action by the Company to recover the overpayment.  In the event that the Salesperson is terminated and there is an overpayment balance, the Salesperson may elect to have the overpayment deducted from the Salesperson’s final check, rather than repaying the debt by personal check. If the deduction from the final check is insufficient to cover the overpayment balance, the Salesperson will be responsible to pay back any remaining balance to the Company by personal check or equivalent instrument.  If Salesperson fails to repay the balance, Salesperson agrees that the Company may recover its reasonable attorneys’ fees and costs incurred in recovering said debt from him or her.