{"id":8240,"date":"2021-09-23T14:00:24","date_gmt":"2021-09-23T04:00:24","guid":{"rendered":"https:\/\/www.pulserecruitment.com.au\/?p=8240"},"modified":"2024-03-12T19:38:00","modified_gmt":"2024-03-12T08:38:00","slug":"what-to-look-out-for-in-commission-structures","status":"publish","type":"post","link":"https:\/\/www.pulserecruitment.com.au\/what-to-look-out-for-in-commission-structures\/","title":{"rendered":"Job Seekers Hub | What to look out for in commission structures"},"content":{"rendered":"

If a five-year-old can understand the commission structure, then that’s a great start. On the other hand, if you need a math’s degree to understand it, it’s probably not that effective.<\/span><\/p>\n

A very common complaint I receive from candidates is that the commission structure is hard to understand or it’s hard to obtain – i.e. When the hiring manager says, “we’ll only release it when we put forward an offer to you.”<\/span><\/p>\n

This is a big mistake because it puts up one extra barrier that isn’t necessary during the hiring process.<\/span><\/p>\n

In this market, it’s hard enough as it is finding top performers, so my advice is to make the commission structure accessible and easy to understand, with real-life examples of the top earners in the team and what they were paid recently.<\/span><\/p>\n

As a general rule, a new business acquisition role should have a 50\/50 split between base and comms, and that’s all well and good, but it’s also important to give candidates a roadmap on how they can get to that magic OTE.<\/span><\/p>\n

Here are six points I believe make a strong commission structure;<\/span><\/p>\n

    \n
  1. Paid monthly or quarterly (monthly especially for high volume\/velocity sales)<\/strong><\/span><\/li>\n
  2. Uncapped<\/strong><\/span><\/li>\n
  3. An accelerator in place (big jump in the % paid) for achieving a set number well above target<\/strong><\/span><\/li>\n
  4. A reasonable threshold with a tapered % up to the strong accelerator<\/strong><\/span><\/li>\n
  5. A clear and easy to understand policy on claw-backs<\/strong><\/span><\/li>\n
  6. Not dependent on others’ performance<\/strong><\/span><\/li>\n<\/ol>\n

    I find that discretionary plans often have the effect of de-motivating strong performers because (as per the definition) it’s up to an individual and is subjective. Therefore, it rarely ends well.<\/span><\/p>\n

    In some cases, team commission structures can be a good idea but generally causes resentment when a top performer carries others within the team.<\/span><\/p>\n

     <\/p>\n

    READY TO TAKE THE NEXT STEP IN YOUR CAREER?<\/strong><\/div>\n
    \n
    Explore a vast array of IT, sales, and marketing roles<\/a> spanning across Sydney, Melbourne, Brisbane, the wider Australia and Asia-Pacific and the United States regions. With Pulse Recruitment<\/a>, you’ll find positions that resonate with your skills and ambitions. Embark on a transformative career journey and submit your resume of LinkedIn profile<\/a> today!<\/div>\n
    <\/div>\n<\/div>\n
    <\/div>\n","protected":false},"excerpt":{"rendered":"

    If a five-year-old can understand the commission structure, then that’s a great start. On the other hand, if you need a math’s degree to understand it, it’s probably not that effective. A very common complaint I receive from candidates is that the commission structure is hard to understand or it’s hard to obtain – i.e.…<\/p>\n","protected":false},"author":12,"featured_media":8242,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"none","footnotes":""},"categories":[76],"tags":[73],"class_list":["post-8240","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-job-seekers-hub","tag-technology-sales"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.pulserecruitment.com.au\/af-api\/wp\/v2\/posts\/8240","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pulserecruitment.com.au\/af-api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pulserecruitment.com.au\/af-api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pulserecruitment.com.au\/af-api\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pulserecruitment.com.au\/af-api\/wp\/v2\/comments?post=8240"}],"version-history":[{"count":2,"href":"https:\/\/www.pulserecruitment.com.au\/af-api\/wp\/v2\/posts\/8240\/revisions"}],"predecessor-version":[{"id":15364,"href":"https:\/\/www.pulserecruitment.com.au\/af-api\/wp\/v2\/posts\/8240\/revisions\/15364"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pulserecruitment.com.au\/af-api\/wp\/v2\/media\/8242"}],"wp:attachment":[{"href":"https:\/\/www.pulserecruitment.com.au\/af-api\/wp\/v2\/media?parent=8240"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pulserecruitment.com.au\/af-api\/wp\/v2\/categories?post=8240"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pulserecruitment.com.au\/af-api\/wp\/v2\/tags?post=8240"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}