Imagine you are the owner of a store. Now imagine you have just received a letter of resignation, signed by every member of one department (effective immediately) citing your sales commission policy as the reason. Is it time to re-evaluate your management policy?
When you structure your pay/commission policy so that your sales staff actually takes home less than minimum wage, it makes people
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unappreciated and angry. Angry people do not make good employees. If your sales people are successfully doing what you have trained them to do, you should pay them appropriately. It hurts your business every time a knowledgeable employee walks out the door.
It also costs your business money to replace an employee. The job search and training costs of a rapid employee turnover are often hidden in your budget. A rapid turnover can also cost you customers who leave and don’t come back because of poor or nonexistent service.
Most people who go into sales love the challenge and competition of the sales floor. They actually like working with people and want to make your customers happy. They will work long hours, deal with unhappy customers, and still smile at the next person in line. However, they do want to be treated fairly and they do want to be able to support their families.
You went into business to make money and to provide a service to your customers. You cannot do that alone. You have to rely on employees who understand your standards and your mission, and will work toward your goals. It pays to play fair.
