"OTE"?

[The1nonly1]

Hi, I've got a potential job interview coming up but not sure exactly what the salary is or what 'OTE' stands for (On Target Earnings, Over Time Expected, Opportunity To Earn etc?) as I have been researching and people say different things. (I will ask them in interview but would like to know beforehand.)

I have been told that it's 'Basic Salary, plus bonus - £25k per annum OTE'. Does that mean the basic salary is 25k and then any bonuses will be added on top or is that made up of basic + bonus + 'OTE'?

The job is purchasing but all the information I have seen suggests that 'OTE' is more sales based.

Any advice on this?

 

[mid_gen]

It's 25K if you meet your targets, basically.

Make sure you clarify what the actual basic salary is.

 

[Deleted member 651465]

OTE means On-target Earnings.

It is usually used when an employee has a "variable" component (commission, bonus, etc.) to their compensation.

Their compensation is made up of both base salary plus the variable bonus, commission, etc. "On-target earnings" is used to describe the sum of both of these amounts.

OTE = Base + Commission + Bonus + whatever else can be annualized, like stock.

OTE represents a big "IF" — IF you earn all of your "expected" commission, bonuses, etc.

 

[Slam62]

I would interpret that as 25k max

 

[Rroff]

Sounds like on target earnings from what you described - hopefully its not "or the equivalent" :S

 

[Caged]

It's strange to have an OTE figure for a non-sales role. They need to let you know the actual salary since the bonus is not going to be considered to exist for things like loans etc, and to be honest you should expect the company to try and get out of paying it wherever possible.

 

[The1nonly1]

Thanks. I'll see what they say once I meet them.

 

[£15]

I would read that as £25k only if you meet all their targets. So, basic could be considerably lower.

 

[Diddums]

OTE basically means "we're using loopholes to find employees to work for less than the market average and we treat our staff like crap".


That's my interpretation of it anyway.

 

[Lopéz]

OTE (On Target Earnings) is mostly used in Sales roles, but if this purchasing role is heavily bonused then it's perfectly acceptable to use it.

 

[icehot]

OTE basically means "we're using loopholes to find employees to work for less than the market average and we treat our staff like crap".


That's my interpretation of it anyway.

Not true for everywhere, for a small tin pot company sure.... maybe...

Get in to a decent company where OTE's are more of an opportunity to seriously accelerate earnings and career.

Many large tech companies provide wonderful benefits, working conditions and great OTE's for sales and technical roles.

 

[Caged]

I don't think any of that is true where the OTE is £25k though. Base is probably something like £18k.

 

[icehot]

I don't think any of that is true where the OTE is £25k though. Base is probably something like £18k.

Yea, I would view it as a stepping stone sort of opportunity though if it were me, earlier in my career looking for a start. Do a year, try overachieve and look for the next thing

 

[Caged]

If it's a role like sales where the more you sell the more profit the company makes, therefore there's no reason to cap your commission, then OTE makes sense as reflecting a figure of what the employer thinks you would make if you perform in line with the rest of the team. If it's capped at £25k and bonuses are based on some ill-defined measure of whole company performance then don't bank on it.

 

[dowie]

I would interpret that as 25k max

probably shouldn't if it is a sales role - there shouldn't often be a max in that instance

perhaps it can be a max in other roles where you get a variable component depending on performance and that component is X% of Y amount with the top performers getting awarded 100% of Y + potential pay rises/promotion etc..