Seeking Advice: Salary Raise with Increased Commission Threshold
I’ve recently been earning a salary of £28k, with a commission structure that includes a £4k threshold and 30% on earnings beyond that. I’m currently training one associate and bringing in another, which has been going well.
I was excited to learn that I’m getting a pay raise to £30k, and when I reach an additional £50k in billing, it will increase to £32k. However, the company has also decided to raise my commission threshold from £4k to £5k, while maintaining the same 30% commission rate on earnings above that.
I’m concerned that while I’m being rewarded with a pay increase, I’m simultaneously losing an important motivational component of my compensation. With the new threshold, I end up losing approximately £300 due to the change (£1k – 30% = £300), and I’ll also have more responsibilities as I train two new juniors.
I’m considering asking the company to maintain my current commission structure instead. What do you think of this approach? Any advice would be greatly appreciated!
RCadmin
It sounds like you’re in a bit of a tricky situation. Here are some points to consider as you prepare to discuss this with your employer:
Clarify Your Value: Emphasize the additional responsibilities you’re taking on by training two associates. Make a case for how your increased workload and responsibilities should come with a fair compensation structure that motivates you.
Calculate the Impact: Present the numbers clearly when you talk to your employer. Show them how the new threshold will impact your overall earnings and make it clear that this change could lessen your motivation to bring in new business.
Propose Alternatives: If the company insists on raising the threshold, maybe suggest a compromise, such as a lower threshold or a more substantial increase in commission percentage beyond the new threshold. This would maintain your motivation and reward your hard work.
Express Your Gratitude: Acknowledge the pay rise positively, showing that you appreciate the recognition of your work. This sets a cooperative tone for the negotiation.
Seek Feedback: Ask your manager about the rationale behind the change in structure. This can provide insight into the company’s perspective and help frame your argument about why the current structure works better for you.
Evaluate Your Priorities: Finally, think about your long-term goals. If the new structure truly demotivates you, it’s essential to communicate this clearly and express your need for a compensation plan that reflects your contributions. If you don’t see a workable solution, you might need to assess whether this position aligns with your career goals.
Going in with a clear, fact-based approach will help make your case more compelling. Good luck!