Dell introduces new sales pay structure rewarding top performers

Dell has implemented a major overhaul of its sales pay structure, rewarding high-performing staff while scaling back earnings for employees who do not meet their targets. The changes, revealed during a town hall led by Kyle Leciejewski, senior VP of North America sales, apply across Dell’s key divisions, including the Infrastructure Solutions Group (ISG) and the Client Solutions Group (CSG).

Under the new system, sales staff who achieve less than 60% of their quota will no longer receive a commission. Employees hitting between 60% and 100% of targets will receive scaled incentives, while top performers exceeding their goals can earn up to three times their agreed incentive — a 50% increase compared to the previous structure.

In addition, Dell is moving all sales teams to quarterly targets. Previously, many divisions measured sales performance twice a year. This change is part of the company’s “One Dell Way” modernization initiative aimed at streamlining operations and preparing for AI-driven growth.

While the new pay plan is designed to reward profitable growth and top performance, some employees have expressed concern that the adjustments could reduce their overall take-home pay. Challenges cited include rising quotas, longer sales cycles due to supply chain issues, and tougher market conditions for certain divisions.

The revamp reflects a wider trend across Big Tech, where companies are adopting more performance-driven cultures. Dell executives say the overhaul ensures competitiveness, motivates staff, and positions the company for future innovation. COO Jeff Clarke described the transformation as “the biggest in company history,” emphasizing that leadership will support employees through the changes.