ASA Central Network

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  • 1.  Sales Commission Structure

    Posted 12-15-2020 16:07
    Hello,

    I was hoping to come to the group with some insight about your sales team commission structure. We are working on planning for 2021 and would like to hear more about what goals you have tied to your sales team, what the commission structure is, and when do the commissions start?

    Thank you in advance.

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    Erin Kopec
    Marketing Director
    HireLevel
    Marion IL
    (618) 993-9675
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  • 2.  RE: Sales Commission Structure

    Posted 12-16-2020 00:30

    Hi Erin –

     

    Andrew Hill had a good conversation / survey going back on this same subject back in November.  Maybe search that on ASA Central.

     

    Have a good one!

     

    Carl Rudolph, CSP

    Owner / General Manager

    C: 610-741-5260

     

    logo with tag small

     

    "Helping your company build a winning team!"

     

     




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  • 3.  RE: Sales Commission Structure

    Posted 12-16-2020 07:31
    Hello Erin,
    I have helped many of my clients tackle this very same topic. We have found "growth" to be a key factor in setting up successful commission plans. For example, if a sales/recruiter is earning commission on Gross Margin, you will want to set up a plan that rewards growing Gross Margin. I recommend setting a reasonable and low gross margin number to be attained before commissions kick in, keeping motivation high. 

    Happy to discuss with you off line. 
    Claudette

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    Claudette Cunitz TSC, CSP
    Staffing Industry Consultant, Speaker and Trainer
    CC Advisors Group LLC
    Waterford MI
    (313) 549-9640
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  • 4.  RE: Sales Commission Structure

    Posted 12-16-2020 07:41
    Reach out to Andrew Hill at Employee Solutions. He had a great survey he put together and had a great response. I can send it to you as well.

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    Chip Ramsey
    Director of Sales
    ScoutLogic Inc.
    Lincolnshire IL
    (800) 693-2709
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  • 5.  RE: Sales Commission Structure

    Posted 12-16-2020 08:53
    Hi Erin:

    This is one of those areas that just never gets resolved. It's not a one-and-done issue when it comes to incentive compensation. As the former co-founder and CEO of a large national staffing firm, it seems that we struggled with this every year. I tend to support Claudette's recommendation that you build a program based on growth, not just on gross gains. In other words, if the incentive program is based on gross margin, it's paid on the growth of gross margin from a previous comparable reporting period to the current one. And don't forget to build in a buffer that takes into account any location that is not profitable.

    Best of luck.

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    Jay Mattern
    CEO
    TerraFirma Marketing
    South Bend IN
    (574) 213-3855
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  • 6.  RE: Sales Commission Structure

    Posted 12-16-2020 09:38
    Hi everyone:  

    I'm interested too.  We are a small firm, but would love to hear what everyone is doing - Your question about when to start is interesting - how about when to end?  Any upper limits of time, or reduction of amount after a period of time?  Thanks, and I hope everyone has a great Christmas!

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    Kris Swanson
    Managing Partner
    Flex Execs Management Solutions
    Willowbrook IL
    (630) 655-0563
    kswanson@flexexecs.com
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  • 7.  RE: Sales Commission Structure

    2020 Staffing World Attendee
    Posted 12-16-2020 09:59
    Call me anytime on my cell and I can go through our structure with you.  It won't make sense if I just send the docs to you.  It involves recruiters as well and I dont' know that you would want that.  
    Thanks
    Susie

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    Susan Dietrich
    Principal
    AllTek Staffing Inc.
    Pittsburgh PA
    (412) 701-9001
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  • 8.  RE: Sales Commission Structure

    Posted 12-16-2020 10:27
    Edited by Michela Gaviorno Taylor 12-16-2020 10:27

    Funny you bring this up I am working on the same.  I have a hybrid HR position that is grouped with staffing for two types of positions, hourly field employees as well as corporate.  The base comp for this individual is relatively high and I am trying to determine commission.  I have always done a lower base plus a commission of percentage of revenue, the higher commission based on hitting targets for the annual budget. I am a little torn on this one with the base being higher. 

    Typically for a base full cycle recruiter we would pay about a base plus commission and when reaching rev goals bumping up to a higher commission.  For temp we pay on the net, for direct we pay on the full fee. 

    Would love your perspective on what type of recruiting you are doing and what your past comp structures have been

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    Stacie Steelman
    CEO
    Steelman Staffing Associates
    San Diego CA
    (877) 553-4231
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  • 9.  RE: Sales Commission Structure

    Posted 12-17-2020 08:41

    Hi Stacie,

    Hybrid positions can be tricky. Since you are already paying a higher base and without knowing your current commission structure, I would recommend a quarterly bonus based of a select few KPI's. Ask, "what's the most important thing this role needs to accomplish" and create an easily measured KPI around that. Ask again for the  #2 and  #3 goals for this role and so on. 

    Happy to discuss this with you in greater detail. 

    Happy Holidays! 



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    Claudette Cunitz TSC, CSP
    Staffing Industry Consultant, Speaker and Trainer
    CC Advisors Group LLC
    Waterford MI
    (313) 549-9640
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