There is no single commission plan that will be suitable for all situations. However, there are a number of guiding principles that will ensure a scheme is successful and that the salespeople feel it is fair, no matter what industry they are working in. We’ve put together three questions that will help evaluate your company’s commission scheme.
1. Is it
simple?
Salespeople should be able to understand the commission and very quickly figure out how much they are earning each month. The less time they have to spend working out their sales commission for the month, the more time they can spend focused on selling and keeping clients happy.
2. Is it enough
to motivate people?
Salespeople keep a business going. Without money coming in, nothing else the business does will make a difference. For this reason, it is important to ensure that the commission is a fair reflection of the contribution salespeople are making to the company. While high commission might not turn a bad salesperson into a good salesperson, it is more likely to keep a good salesperson happy and keep them within the company.
3. Does it
reward the top earners?
A good commission scheme will integrate a tiered scheme, to ensure that those who work hardest are also the most valued. By having a number of tiers, you will ensure that all salespeople are receiving some commission, but there continues to be a higher goal to ensure the top performers do not become complacent and continue to have something to strive towards.
Are you happy with your company’s commission scheme?
Hays Sales UK are experts in all areas of sales recruitment and can provide advice at all stages of the process. To find out more about how our expert consultants can help you find your next role, please visit our website.
