Sales targets and exchange rates
Discussion
Just wondering if this is normal corporate behaviour…?
I am employed by an international corporation. I sell in local currency, but my sales figures are then converted and reported in the currency of a neighbouring country (where Management are located).
My local currency billing is converted using the exchange rate on the first of each month for that month - ie I have no control over exchange rates used. But my sales target is set in the other currency, and the target isn’t revised each month using the same floating exchange rates…
Needless to say my billing currency has devalued rapidly by 10% over the past 6-9 months…
TL:DR I am being shafted - the (falling) exchange rates being used to record my revenue are not the same rate(s) as my sales target was set at!
There are some easy ways to remedy the situation if Finance colleagues want to. We shall see.
Surely most employers don’t operate in such an underhand manner?
I am employed by an international corporation. I sell in local currency, but my sales figures are then converted and reported in the currency of a neighbouring country (where Management are located).
My local currency billing is converted using the exchange rate on the first of each month for that month - ie I have no control over exchange rates used. But my sales target is set in the other currency, and the target isn’t revised each month using the same floating exchange rates…
Needless to say my billing currency has devalued rapidly by 10% over the past 6-9 months…
TL:DR I am being shafted - the (falling) exchange rates being used to record my revenue are not the same rate(s) as my sales target was set at!
There are some easy ways to remedy the situation if Finance colleagues want to. We shall see.
Surely most employers don’t operate in such an underhand manner?
How rapidly have they devalued?
Which Countries?
Presumably, for some time, those losses might have been gains if the situation was different in the past?
I can easily imagine Corporates doing that: not necessarily to shaft you, although clearly that is your perception….more likely just how the process grew as they entered new markets.
Have you asked your manager about it, and whether something can be done?
Which Countries?
Presumably, for some time, those losses might have been gains if the situation was different in the past?
I can easily imagine Corporates doing that: not necessarily to shaft you, although clearly that is your perception….more likely just how the process grew as they entered new markets.
Have you asked your manager about it, and whether something can be done?
I wouldn't call it underhand. If the currency moves the other way it would work in your favour.
The business you work for runs its business in its own currency and is judged on that. The exchange rate fluctuations are out of their control as much as they are out of yours. This is just something to get used to when operating across currencies. Would you be happier if your sales targets were set in their currency instead of GBP?
The business you work for runs its business in its own currency and is judged on that. The exchange rate fluctuations are out of their control as much as they are out of yours. This is just something to get used to when operating across currencies. Would you be happier if your sales targets were set in their currency instead of GBP?
seiben said:
I have the same thing - sell in GBP or Euro, measured in USD. Sometimes it's in my favour, sometimes not, but it usually comes out in the wash.
Yep, same for me, and also my wife. Current company sets a rate internally at the beginning of the year and just sticks to that.
okgo said:
seiben said:
I have the same thing - sell in GBP or Euro, measured in USD. Sometimes it's in my favour, sometimes not, but it usually comes out in the wash.
Yep, same for me, and also my wife. Current company sets a rate internally at the beginning of the year and just sticks to that.
When we escaped and set up our own company we adjusted exchange rates in real time but we maintained bank accounts in dollars, euros and pounds.
Where is company you are employed by based?
If it's in the selling country then you might be able to make a stronger argument for changing your targets to the local currency of the company.
Also, is this an issue for other sales people or just you? Depending on how big your company is, it might be worth speaking to a finance business partner or accountant to find the company's policy for such things.
If it's in the selling country then you might be able to make a stronger argument for changing your targets to the local currency of the company.
Also, is this an issue for other sales people or just you? Depending on how big your company is, it might be worth speaking to a finance business partner or accountant to find the company's policy for such things.
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