Is my commission really that bad?
Hello everyone,
I’m a Sales Manager at a recruitment agency in Lithuania, where we focus on supplying manpower to the construction industry in Scandinavia. While my main role is to acquire new clients, I often find myself addressing issues that go beyond my job description—like helping workers troubleshoot personal problems, such as a broken washing machine. The CEO frequently involves me in these matters, which I don’t think should fall under my responsibilities.
This year, I’ve managed to generate over 1 million euros in revenue for the company, yet my commission is only 1% of that, along with a very modest base salary. Given my contributions and taking into account industry norms, what would be a fair commission rate for my role?
RCadmin
It sounds like you’re in a challenging situation, both in terms of your responsibilities and the compensation you’re receiving. Given that you’ve generated over 1 million euros in turnover, a 1% commission seems quite low, especially considering the additional workload you’re handling beyond your primary role.
In recruitment, commission structures can vary widely, but it’s not uncommon to see commission rates ranging from 10% to 30% of the revenue generated, depending on the market and the specific role. Some companies also provide tiered commission structures that reward higher sales volumes with increased percentages.
To assess what might be reasonable for you, consider the following steps:
Industry Benchmarking: Research commission structures within similarly-sized recruitment agencies, particularly those focusing on the construction sector in Scandinavia.
Documentation of Achievements: Prepare a record of your contributions, including the significant turnover you generated, to strengthen your case for a higher commission.
Present Your Case: When discussing your commission with your CEO, emphasize not only the revenue you’ve created but also the extra responsibilities you’ve taken on.
Consider Negotiating: If possible, negotiate for a higher percentage or propose a tiered commission plan that reflects your contributions more accurately.
Ultimately, your compensation should align with the value you bring to the company, and advocating for yourself is an important step. Good luck!