What do on target earnings mean?

“On-track” or “on-target” earnings (OTE) is a term often seen in job advertisements, especially for sales personnel. It is the expected total pay, if performance matches the expected targets. Alternatively, on target earnings can refer to an executive pay schedule contingent upon the achievement of specified goals.

What OTE means in salary?

This page shows which payments to employees are counted as ordinary time earnings (OTE), and which are counted as salary and wages for super guarantee purposes. As an employer, you use: OTE is the amount you pay employees for their ordinary hours of work, including things like commissions and shift loadings.

How do you calculate target earnings?

How OTE gets calculated. In its simplest form, OTE is calculated by adding together your base salary and on-target commissions. This means that if your base salary is $75,000 and your on-target commission is $35,000, your OTE would be $110,000 if you hit all your sales goals.

What is your desired on target earnings?

Your OTE is the amount of money you can expect to earn if you hit 100% of your quota. This number is usually given in an annual figure. For example, a sales job posting might say “$90,000 OTE”.

Are on target earnings realistic?

The term ‘on-target earnings’ refers to the total compensation a sales rep can expect to receive if their performance matches the expectations of their role. The OTE figure you present to a candidate needs to be definitive and realistic.

How is pay mix calculated?

It’s easy to calculate pay mix. On-target commission divided by OTE equals the percentage of your pay tied to the commission. Base salary divided by OTE equals the percentage tied to base salary. For instance, if your on-target earnings are $100,000 and your base pay is $54,000, your pay mix is 54/46.

What do you mean by on target earnings?

As an executive recruiter and talent expert, I often get questions from hiring managers about “on-target” or “on-track” earnings, also known as OTE. The OTE metric is used to provide a realistic forecast of what the total compensation of a particular position should be when reasonable performance targets are achieved.

What’s the target OTE for a new employee?

Quite simply, OTE is only one number and should be the target compensation that the new employee expects when they accept the position. Say a salesperson has a base salary of $80,000 and has actual commissions for the year of $40,000. Their OTE in their current position is $120,000, and you can validate that number at hire via W2 earnings.

What do you mean by target date fund?

A target-date fund is a fund offered by an investment company that seeks to grow assets over a specified period of time for a targeted goal. To fund is a type of target-date retirement fund whose asset allocation becomes most conservative at the fund’s target date.

What does OTE mean for your income model?

That means that the on-target earnings OTE rate is approximately $85,000, though this number can sometimes end up being larger. That $85,000 is the total compensation someone in that sales position can earn in a year, assuming that they hit 100% of their sales quota for that year. What does OTE mean for your income?