- Job Description
- A formal document that outlines the duties, qualifications, reporting relationships, and expectations for a specific role within an organization.
- Reporting Structure
- The chain of authority that defines who the employee reports to directly and, where applicable, which roles report to them.
- OTE (On-Target Earnings)
- Total expected compensation when the employee hits 100% of their quota — typically base salary plus full variable/commission payout.
- Commission Plan
- A compensation structure that ties a percentage of sales revenue or gross margin to the employee's pay, often detailed in a separate commission agreement.
- KPI (Key Performance Indicator)
- A measurable value used to evaluate whether an employee is meeting performance targets — for a sales manager, common KPIs include team quota attainment, pipeline coverage, and new-logo count.
- Quota
- A defined sales target — expressed in revenue, units, or gross margin — that an employee or team is expected to achieve within a set period.
- At-Will Employment
- An employment relationship in which either party may end the relationship at any time, for any lawful reason, without advance notice — recognized in most US states but not in Canada, the UK, or the EU.
- Essential Functions
- The core duties of a position that an employee must be able to perform, with or without reasonable accommodation — a concept with specific legal significance under the ADA in the US.
- FLSA Exemption
- A classification under the US Fair Labor Standards Act that determines whether a role qualifies as exempt from overtime pay requirements — most sales managers qualify as exempt under the executive or administrative exemption.
- Acknowledgment Clause
- A signed statement by the employee confirming they have received, read, and understood the job description — creating a documented record that supports later performance management.
- Schedule A
- An exhibit or addendum attached to an employment contract that specifies the employee's detailed duties — incorporating the job description into the binding agreement by reference.