In this section
Sales Staff Commission Schemes
So is it really all about the money?!! Undoubtedly good sales professionals are looking at incentive and commission schemes to drive them onto higher sales performance. Sales commission schemes, bonus schemes, or annual bonuses are the norm as part of a sales benefits package. Yet, there is little information available to help companies looking to redesign or introduce new schemes. In this article, we detail various ways to devise commission schemes that work but also look at other ways to recognise and reward top performance. We hope that it has a few ideas in it that could be right for your business. To find top staff worthy of the commission scheme, you may want to see our guide on hiring top talent.
Why Doesn't One Scheme 'Fit All'
It is very difficult to generalise or to propose a panacea commission scheme, as what works for one company may not work for another. However, within this article, we offer a handful of ideas for you to construct the best sales incentive scheme for your team and business.
The right method is entirely based on your company culture and the type of way you secure sales, the 'toughness of the sale' involved, the level of the employee's input required to secure sales. It also has to be based on the size of orders won, the GP within these deals, the amount of competition and many other contributing factors. However, it must be remembered that commission schemes need to be kept simple to achieve the objective of driving sales staff to greater sales performance.
Within reason, it is common to pay a lower basic salary (than employees at a similar level within your business) and higher bonuses or commission that will often take the overall package to be higher than other staff members. With increased risk, daily rejection and other obstacles in their path, it is quite right that top sales professionals should earn more than staff in other departments. If you don't recognise, incentivise and reward your top sales performers, you will undoubtedly lose them. We've got a handy tip-sheet on motivation too.
It is worth considering alternative benefit schemes; while financial incentives play a significant role, our article on non-financial rewards can help shed some light on alternative motivators.
The Goal in Devising a Commission Scheme that Works
For the employee, the scheme has to be clear and motivational to serve the purpose of driving them on to bigger and greater revenue numbers. From an employer's perspective, it has to be sensible (i.e. not paying bonuses on bad business) and be easy to calculate.
Monthly or Annually?
An idealistic commission scheme for sales employees would be monthly and annually - perhaps an annual override for exceptional performance (as each payment term motivates different behaviours).
Paying sales employees monthly commission incentivises immediate action. Because the selling environment for many companies can vary seasonally, implementing a monthly commission programme offers management the ability to react to changing market needs and trends rapidly.
Annual commission drives consistent top performance, particularly if it is an accelerated scheme based upon achieving more than is expected of the sales professional. If an annual commission scheme is implemented, it could also be based on total company performance so staff can promote each other's behaviour and be held accountable for helping to achieve the company's principal objectives.
If multiple salespeople do the same job, their commission compensation schemes should be equal. Mr Williams would not be pleased if he knew that his colleague Mrs Avery received a better compensation scheme. This could provide friction within a team and could consequently lead to higher levels of staff turnover. However, you might want to reward salespeople through higher base salaries for the length of service, experience or exceptional performance. But, most importantly, be very, very, very clear with all of your sales staff and apply any differences consistently.
When you choose a payment system for your business and sales employees that pays by results, you will need to consider whether to top up workers' earnings with payments such as commission, bonuses, tips and gratuities.
Submit your vacancy to Aaron Wallis
Recruit sales staff
Just fill in your details below to get started
by Darren Dewrance
About the author
Darren spent six years in sales and field sales before joining the original sales recruitment specialist, Austin Benn, in 1998. After achieving the status of top consultant, out of about seventy at the time, Darren rose from Senior Consultant to Operations Manager of the commercial sector before leaving to join a London based Headhunter in 2003 before setting up Aaron Wallis with Rob in October 2007.
With a natural leadership style, Darren is an expert on putting his finger right on the heart of the problem. His natural commercial instincts have helped hundreds of employers make better recruitment decisions. Darren is married with two children, and when not at work or with his family, he likes nothing more than to be on the side of a river or a lake with a rod in his hand.
From our blogRead more
Our employers say...
In an industry where people over promise and under deliver, Rob and his teams have consistently provided a high-quality service. It is great to deal with someone that has an excellent understanding of UK industry, and a passion for sales.
Sales Manager, TR Fasteners
We were impressed not only by the quality of candidates you found for us but also the level of information, preparation and qualification you put into the process. You continually kept us informed of each person’s feelings about the process, which is very important but often overlooked. I am looking forward to working with your company again in the future.
Commercial Director, Incentive Facilities Management
We appointed Aaron Wallis in February and the successful candidate, out of the six which Aaron Wallis introduced, was able to join Alphametrics before the end of April. The whole process took less than three months. I would recommend Aaron Wallis' services to others without hesitation.
Chief Financial Officer, Alphametrics
Aaron Wallis has continuously provided us with suitable candidates that have been proactively sourced. Having used countless recruitment companies, Aaron Wallis are the only company that I can count on to deliver.
Managing Director, JARK Healthcare Recruitment
I have used Aaron Wallis to fill a number of our Sales Development Manager roles and I have found them to provide a very professional service. I will use their services again in future recruitment campaigns.
HR Business Partner, Greene King
I just wanted to thank you for your help with our recruitment process which went very smoothly and has – we hope – found us just the person for the job!
Managing Director, Citrefine International Ltd
Giles is highly professional and was a pleasure to work with. He achieves excellent results through his personable skills and tenacity. I have no hesitation in recommending Giles to anyone who considers employing his services.
Commercial Director, G4S Government & Outsourcing Solutions
Rob is a true recruitment professional that goes the extra mile that I have never experienced from any other recruitment agency before. If you need sales people call Rob or someone in his team, as they really are experts in sales recruitment.
Sales Director, Inside Business
Giles Phillips is a rare find in the minefield of sales recruitment; an honest and thoughtful recruiter who considers the needs of both the client AND the candidate to create perfect role matches. I look forward to working with him again in the future.
Marketing Director, City of London Police
I have always found Rob to be very knowledgeable about our industry sector, and it is refreshing to see after all of these years that Rob continues to quickly and accurately understand my requirements.
HR and General Manager, THK
I found Aaron Wallis to be very professional and efficient, taking time to understand the role and the type of candidate we were looking for. The candidates they put forward met our criteria and were of a high standard. The service they provided was exemplary and I would have no hesitation in recommending them, and will certainly consider using them again in the future.
HR Assistant, Fischer Connectors Ltd
Understood the type of person we were looking for and good follow ups - not too frequent.
Managing Director, bigHead Bonding Fasteners Ltd
Thanks for all your help during the recruitment process. I have been extremely impressed with Aaron Wallis especially when compared to other agencies we have dealt with. I really felt you grasped the type of person we required and found strong candidates.
UK Sales Manager, Nexcom
Since joining DSGi, Rob has been a supplier of permanent staff and has performed to an extremely high standard, successfully filling 98% of roles he has worked on. If anyone is looking for a good sales and marketing based consultancy with an informal yet professional approach, I would recommend Rob.
Senior Recruitment Consultant, DSG International
Rob’s knowledge of the recruitment industry and his thoughts and how to make it better for his clients have always been eye opening. I would recommend Rob to anybody who is looking for a professional, knowledgeable and flexible recruitment specialist.
CEO, Friday Ad Online Services
I really liked the YouTube presentations which made the service seem both simple and accessible. The company came to see me, and my management team, at short notice to present their service and I liked the support and advice that I received about maximising the results from the applicant.
Managing Director, Leisuresec plc
Our candidates say...
Very good advice and support was given during the course of the interviewing process. Potential job seekers would be well advised to use this company whilst looking for their new career.
R. Speakman, Candidate
Aaron Wallis have provided me with an excellent service, Giles went out of his way to help me preparing for my interview and supported me through all the processes. If you need an agency to give you a fully professional and consultative approach to finding you a new career move, the Aaron Wallis can certainly provide this for you.
D. Richards, Candidate
A great recruitment company to work with. Excellent experience with Aaron Wallis through the entire recruitment process. The team was really professional and extremely helpful. Darren was a pleasure to work with. He was friendly, supportive and gave me great advice. Thank you very much!
A. Bauchet, Candidate
I have to say coming across and having dealings with Aaron Wallis proved to be very successful. Being highly experienced did not seem to count for much during my job search bit a conversation with Robert Scott gave me a real confidence boost and enabled to get a position at the age of 63. Great service!!!
D. Burgess, Candidate
Fantastic customer service, communication was brilliant, happy polite people to talk to, made everything a lot easier and smoother. Thank you for all your help getting me back in the work force, Keep up the good work :-)
K. Everitt, Candidate
I can honestly say that the time and expertise you gave me was way beyond any other recruitment consultant I dealt with. You are a rarity in your industry.
S. Akers, Candidate
I've had a really good experience working with Giles Phillips at Aaron Wallis. From initial contact to the finer details of securing the job, he has been very professional and a pleasure to work with.
M. Shutt, Candidate
Really excellent experience dealing with Aaron Wallis. Liam Oakes who helped me get a great job was brilliant. Kept me up to date during the process and offered great help and advice, and a thoroughly nice guy. Highly recommended!
J. Hathaway, Candidate
Perfect from start to finish. Simon deserves a shout out. Best recruiter there is. If you need a job, this guy will get you one. He's like the super man of recruiters. Top man, can't recommend him enough.
M. Crisp, Candidate
Aaron Wallis helped me secure a position I really wanted. Giles sought to keep me updated with all the details preceding interviews and after with feedback. I would highly recommend Giles and Aaron Wallis Sales Recruitment.
L. Taylor, Candidate
Aaron Wallis is an outstanding recruitment agency specialising in high calibre sales positions. I was working directly with Darren Dewrance who went above and beyond my expectations in sourcing me my perfect role. I was kept in regular communication with Darren and he worked extremely hard to secure my dream job. Highly recommended and Thanks Darren for all your expertise and hard work.
R. Sealy, Candidate
Aaron Wallis (and in particular Rob Scott) have been fantastic throughout the recruitment process, and even a few months down the line, still continues to care. Rob clearly cares about each individual and has a wealth of knowledge and expertise, which shows in the work he does. Each candidate is not just a number, and the support received from Aaron Wallis has helped me get a career which I truly enjoy.
M. White, Candidate
The Recruitment agent I used, Simon, was extremely helpful and really went the extra mile to ensure all of my questions were answered, and that I felt as comfortable and prepared as possible. Very professional company and would definitely recommend to others. Thank you Aaron Wallis!
A. Callaby, Candidate
The service provided by Aaron Wallis has been just great. I was constantly informed about what was going on with the process interview and the agent has always been supportive and kind to me.
L. Colagrossi, Candidate
Less than two weeks after joining Aaron Wallis I was offered my new job. I got a £10,000 rise in my basic salary, car allowance, a laptop and many other perks, which will help to further my career. I definitely would not have found my dream job without the help of Aaron Wallis.
C. Hoy, Candidate
Aaron Wallis Sales Recruitment are a very friendly and professional recruitment organisation who listen to your needs, work with you and act on your behalf which sets them apart from many of their competitors who in my experience are willing to throw anything at you. We discussed my history, my preferences and my wishes - one opportunity was introduced. It was perfect. I start at the end of June.
R. Buckley, Candidate
Excellent experience from first contact to ultimately securing a suitable placement. Giles looked after me in a very professional and friendly manner. He used his expertise and experience to ensure I was put forward for the most suitable positions for my skill set and found me a new role very quickly. I can't recommend Aaron Wallis Sales Recruitment highly enough.
M. Green, Candidate
Excellent service, very professional and friendly, would and have, recommended Aaron Wallis.
E. Heley, Candidate
Good swift process with Aaron Wallis, informative regarding the role and the process was moved at a good pace with healthy interaction. Would recommend them to anyone pursuing a change.
S. Bartlett, Candidate
Fantastic service, helped me find my ideal job quickly and smoothly. Would highly recommend them.
C. Caine, Candidate