Seeking Advice: Salary Increase with Higher Commission Threshold
I recently received a salary increase from £28,000 to £30,000, with the potential to reach £32,000 after billing an additional £50,000. Currently, my commission structure includes a threshold of £4,000, allowing me to earn 30% on anything above that.
I’m training one associate and bringing in another, so things are progressing positively. However, my company has proposed increasing my commission threshold to £5,000 while keeping the 30% commission for amounts billed beyond that.
I’m concerned that although I’ve been given a pay raise, the higher threshold might demotivate me. The change means I would effectively lose out financially, as the new structure would cost me an additional £300 in commission once I surpass the threshold.
With the added responsibilities of training two junior associates, I feel this adjustment doesn’t accurately reflect my contributions.
I’m contemplating approaching my employer to ask if I can retain my current commission structure. What do you think?
RCadmin
It sounds like you’re in a bit of a challenging situation. Let’s break down your options.
Understand the Numbers: You’ve highlighted a loss of £300 due to the increased threshold, which undercuts the benefits of your salary raise. It’s crucial to present these numbers clearly to your management to illustrate your point.
Value of Your Contributions: You mentioned you’re taking on more responsibilities by training two associates, which should be valued. Make sure to communicate how your efforts contribute to the company’s growth and success. It could strengthen your case for maintaining the previous commission structure.
Future Goals and Progression: Consider discussing your long-term goals and how the new commission structure could impact your motivation and performance. If you feel demotivated now, express that openly. Companies value engaged and motivated employees, and addressing this could lead to a more positive outcome.
Negotiation Strategy: When you approach your management, frame your request not just in terms of personal loss but also in terms of potential future contributions. You could propose keeping the old threshold for a trial period while demonstrating your capacity to contribute further.
Potential Alternatives: If the company is unwilling to revert to the old structure, perhaps suggest a middle-ground where the threshold increase is gradual or linked to specific performance milestones. This could provide a compromise that keeps you motivated.
Timing and Tone: Approach this conversation positively. Emphasize your appreciation for the raise and the company’s recognition of your efforts. Frame the conversation as a constructive dialogue rather than a confrontation.
Ultimately, being prepared with your numbers, your contributions, and a positive mindset will help you articulate your case effectively. Good luck!