1. What is On-Target Earnings (OTE)?

On-Target Earnings (OTE) represents the total compensation a sales professional can expect to earn when achieving 100% of their sales quota. It combines base salary with commission at target performance levels.

2. How Does the Calculator Work?

The calculator uses the OTE formula:

Where:

• Base Salary — Fixed annual compensation in KHR
• Commission — Variable pay earned at 100% quota achievement in KHR

Explanation: The equation calculates total expected earnings when sales targets are fully met, providing a benchmark for compensation planning.

3. Importance of OTE Calculation

Details: OTE calculation is crucial for sales compensation planning, setting realistic income expectations, and structuring competitive compensation packages in the Cambodian market.

4. Using the Calculator

Tips: Enter base salary and commission amounts in Cambodian Riel (KHR) per year. Both values should be positive numbers representing annual compensation.

5. Frequently Asked Questions (FAQ)

Q1: What currency should I use for calculations?
A: This calculator is designed for Cambodian Riel (KHR) as indicated, but can be used with any currency by maintaining consistency in input values.

Q2: How does OTE differ from total compensation?
A: OTE represents expected earnings at target performance, while total compensation may include additional bonuses, benefits, and actual commission earned which may vary based on performance.

Q3: Is OTE the same as guaranteed income?
A: No, only the base salary portion is guaranteed. Commission is variable and depends on achieving sales targets.

Q4: How often should OTE be reviewed?
A: OTE should be reviewed annually or whenever there are changes to base salary, commission structure, or sales quotas.

Q5: Are there industry standards for OTE in Cambodia?
A: OTE structures vary by industry, company size, and experience level. Researching local market data is recommended for competitive compensation planning.