Career Calling

March 28, 2014

Cutting Commissions

One of the biggest challenges facing working people is wage cuts. For many sales people, most of their annual income is based on commissions. I met with a client today whom I’ve known for more than 10 years. He has always exceeded sales quota. In his current role he is both a manager and a sales representative. To save money, his employer is changing compensation. The current rate for commissions is 4.5% of sales. As of July that rate will be cut to 3.2%. When he took the job six years ago, the commission was 6.5%. This is not the first time his commissions have been cut.

 

When my client confronted his boss about the situation, the boss told him that the company was increasing his account base and that he could make as much or even more if he worked harder. These words were a deep insult to my client. In his time with the company, he has always exceeded sales goals and often has been ranked #1 in his region. Now he’s being asked to do more just to keep pace. Instead, he’s doing the smart thing: Looking for a new employer who will treat him fairly.

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