A quota is a specific, often non-negotiable performance figure an individual or team is expected to hit for a period - most commonly a sales number, but the concept applies anywhere a fixed output expectation is set.
What it means
A quota differs from a more general target mainly in rigidity and consequence - missing quota in a sales role typically has a direct, visible effect on commission and is tracked formally, where a softer target might not carry the same weight.
Where it fits in
In quota-carrying roles, pay-for-performance is usually structured tightly around the quota - commission or bonus scales directly with how much of it is achieved, making the quota the central number the role's variable pay is built on.
Key rules
- A fixed, often non-negotiable performance figure, most common in sales.
- Stricter and more consequential than a general target.
- Directly drives commission or bonus in quota-carrying roles.
- The central number variable pay is built around in such roles.
