What to know when setting up a bonus or commission?
You should state in the employment agreement that any bonuses or commissions are discretionary and do not form part of the employment agreement. This means that bonuses are not a guarantee or contractual term, but may be given by you if you see fit.
Why is it important to know your bonus structure?
This is useful because: detailing your bonus or commission structure in a policy gives you greater flexibility to alter it, based on your business’ needs. If this information was in an employment agreement, you would need to amend each affected agreement.
What does commission structure work best in recruitment?
In recruitment and with commission structure it is common to also reward for over achievement. If the recruiter goes above and beyond all expectations and has a brilliant month then you can increase the commission quicker. There are two common ways to apply this, a sliding scale or a tiered model.
Is the Commission contract a good business document?
Your commission contract is also a powerful business document that challenges you to get clear on the most beneficial commission structure for agents and your company. You need to be incredibly intentional in integrating commission agreements into your business successfully.
You should state in the employment agreement that any bonuses or commissions are discretionary and do not form part of the employment agreement. This means that bonuses are not a guarantee or contractual term, but may be given by you if you see fit.
This is useful because: detailing your bonus or commission structure in a policy gives you greater flexibility to alter it, based on your business’ needs. If this information was in an employment agreement, you would need to amend each affected agreement.
Your commission contract is also a powerful business document that challenges you to get clear on the most beneficial commission structure for agents and your company. You need to be incredibly intentional in integrating commission agreements into your business successfully.
When to use a commission with a base salary?
Commissions, the most common type of compensation plan, can be offered with or without a base salary. However, most companies pair commissions with a base salary. They are more typical in businesses that are: Use a commission when you know the fixed amount of the money your business can reasonably afford to pay sales reps to sell your offering.