Fixing sales comp plans for parental leave: What actually works

Parental leave and sales compensation don’t play well together.

Most companies want to do right by their employees - especially new parents - but when it comes to sales reps, things get complicated fast. Quotas, commissions, pipeline coverage, attribution…it’s a minefield. 

And the stakes are high: careers, compensation and team culture are all on the line.

Before I founded Parentaly, I was an enterprise sales manager. I’ve carried a quota, led high-performing teams, and saw comp plans that seemed great in theory, but in practice were often lacking, especially for top performers.

In the 5+ years since launching Parentaly, this continues to be one of the top questions I hear from clients: How do we design a sales comp plan that’s fair for everyone? 

While many companies are actively trying to get this right, unique, real-life scenarios still surface where someone unintentionally misses out on compensation.

So I wanted to dig deeper and posed a question to my network: What are companies actually doing to support sales reps on parental leave?

We crowdsourced insights from 35+ HR professionals, sales leaders and sales execs to hear how they’ve managed parental leave comp plans. We analyzed responses to recap what we’ve found and offer recommendations based on three key areas:

• How AEs on leave get paid
• How coverage teams are compensated
• What else gets overlooked 

This post is a guide of what we learned - not to prescribe a “right” answer, but to give leaders a clear, grounded view of the tradeoffs and options.

How AEs on leave get paid

Sales reps typically rely on commissions for a large share of their income. When they go on leave, companies fall into a few main models:

• Base pay only: Reps receive their base salary during leave, but lose out on all commission - even for deals they sourced or advanced prior to their leave. This model is easy to implement and creates a clean line administratively, but it often feels punitive. For many AEs, this means losing 40–60% of their total comp, which creates an emotional and financial toll.
• ‍Pre-approved deal lists: Before leave begins, the AE and their manager agree on a set list of in-flight deals. If those deals close while the rep is out, they still receive commission. This creates a shared understanding up front - but it limits upside, adds administrative complexity and doesn’t account for unexpected wins.
• ‍Pro-rated commission tapering: This structure offers partial commission during leave, typically declining over time - for example, 75% in the first month, 50% in the second, and 25% in the third. It’s an effort to provide continuity and some financial support, but it can still feel arbitrary and insufficient depending on a rep’s earning expectations.
• ‍Full commission on self-sourced deals: In this model, AEs continue to earn commission on any deal they personally sourced and worked - even if someone else closes it while they’re out. It requires trust, strong tracking systems and team alignment on attribution, but it’s often seen as the most equitable by reps and leaders alike.

How coverage teams are compensated

When someone steps in to cover a rep’s book of business, comp plans vary just as much:

• Full credit to coverage AE: The covering rep gets 100% of the credit and commission. This model is easy to operationalize - but if the deal was mostly closed before they stepped in, it can feel unfair to the original AE. For example, one respondent stated this was the case at their organization even if “all they did was send the quote.”
• ‍Split credit between AE and coverage AE: Commission or quota credit is shared between the leave-taking AE and the coverage AE. This can be a 50/50 split or determined based on who did what. It encourages fairness, but can require judgment calls or negotiation.
• ‍Rolled into team or manager quota: Instead of assigning the deal to one person, the revenue gets absorbed by the manager or team. This helps avoid credit disputes, but can add pressure to the broader team and dilute individual accountability.

What gets overlooked - and why it matters

Beyond comp mechanics, the qualitative feedback revealed systemic gaps:

• No quota relief: Many AEs are still expected to hit their full annual targets
• No ramp-back plans: Reps return to empty pipelines and full pressure
• No policy documentation: Processes are ad hoc, inconsistent, and often invisible
• Bias before leave even starts: Some reps reported being pulled off deals once they disclosed a pregnancy

These aren’t just tactical failures - they’re moments where talent and trust are lost.

‍Things to think about when designing your policy

If your goal is to keep high-performing talent and build a culture where parenthood isn’t a penalty, the details of your comp plan matter. 

Here are five key questions to consider when crafting a policy specifically for sales roles:

1. Commission eligibility → Will reps earn commission on deals worked prior to leave, or only those that close before?
2. Deal attribution→ If someone else closes a deal while the AE is out, how is credit shared?
3. Manager and team goals → Should quotas be adjusted to reflect the burden of coverage?
4. Ramp-back support → Will returning reps be expected to hit full quota immediately?
5. Policy transparency → Is your approach documented, accessible and easy to understand?

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Sales comp plans weren’t designed with parental leave in mind. But they can be reimagined - in ways that drive performance, equity and long-term retention. 

That starts with asking the right questions and being willing to start with clarity, evolve with feedback and account for both numbers and nuance.