Commission Structure Update
Hello everyone,
I wanted to share an important update regarding our commission structure.
Previously, we received a 30% commission on any sales exceeding $5,000 per month. This threshold has now been raised to $7,500, meaning that we will only earn a 30% commission on sales above this new amount.
I’m curious to hear your thoughts on this change. Is this a reasonable arrangement? Is it common in the permanent recruitment sector to see an increase in the commission threshold? We’ve been informed that this adjustment is due to rising overhead costs.
Looking forward to your feedback!
RCadmin
Hi there,
It sounds like the recent change to the commission structure is significant, particularly with the increase in the threshold from $5k to $7.5k for qualifying for the 30% commission. While it’s quite common for companies to adjust commission structures due to rising overhead costs, it’s important to consider how this change impacts your potential earnings.
Here are a few things to keep in mind:
Industry Standards: It would be helpful to look into what is standard in your industry for commission structures, especially for permanent recruitment roles. This can provide some context on whether the new threshold is reasonable or not.
Overall Earnings Potential: Evaluate how often you hit the previous threshold of $5k. If you were consistently reaching that threshold, the new $7.5k barrier could significantly affect your earnings unless you anticipate that your average deal sizes will also increase.
Communication with Management: If you feel uncertain about the fairness of this change, consider discussing it with your management. They may provide further insights into the reasoning behind the adjustment or even be open to feedback.
Long-term Implications: Consider not just the immediate impact, but how this might affect your motivation and compensation over time. If most salespeople find it challenging to reach the new threshold, this could impact morale and performance.
Overall, while it’s not unusual for thresholds to be increased, it’s essential to assess how it fits with your performance and financial goals. Open dialogue with colleagues and management could provide additional perspectives.
Best of luck!