If you’ve heard anything about fair employee motivation, then you should read this text to the end. Because the days of the “wild” market are gone. And the phrase “grab more – run faster” doesn’t always work. And in companies like this, which are engaged in the development and implementation of complex strategies, it makes no sense at all to pay employees for performance, measuring it by diligence of appearance at the workplace and detailed reports on the work done. It’s not worth it and won’t bring success to a company that’s desperately fighting for its place in the sun. That’s why it’s worth turning to such developments as a commission calculator. An example of such a calculator is offered by the Reply.io service at https://reply.io/sales-commission-calculator/. But we will pay attention not to the technical nuances of implementing such a calculator, but to why such solutions are very important for creating a good and competitive atmosphere in a company.
Fair and transparent
It’s not at all necessary to show the level of pay with commissions. And it’s even less ethical to tell or publish specific payout amounts. But demonstrating the dynamics of income, at least as a percentage, without numbers, is the right strategy. A commission payout calculator will orient all employees to the benefits they have received. And most importantly, it stimulates at least three positions of activity:
- the possibility of getting the same pay raise;
- the reality of achieving high performance;
- the desire to compete with others in efficiency.
But even these are not the most important aspects of introducing commission calculations.
Everyone gets their contribution and talent: a comprehensive assessment
Each of the employees is talented in his or her own way. Some can convince 100 customers, while others win multiple contracts. But each of the sales agents is important. A few contracts with big buyers will be much more important and profitable than a hundred small deals for a small amount. This example illustrates how important it is to evaluate an employee’s contribution holistically, rather than based on a single metric.
In any case, in order to pay the commission you should be guided by at least three indicators:
- speed and quality of the deal – its practical implementation;
- the sum of transaction;
- the period of its conclusion.
It is the complex analysis of parameters of the transaction that allows to achieve the best indicators. And it introduces not only a competitive spirit to the team of the company. But also, a sense of fair distribution of the profit received.