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Decision Point: Commission Plan
You don't see anything inherently unfair in the commission plan, but you have your suspicions as to who might think it unfair. You discover that it is the newer salespeople who see the commission plan as unfair. Commission rates for untenured sales personnel who have been employed by Swazzi for less than five years are lower than for tenured employees who have been at Swazzi for longer than five years. Newer employees believe they put as much effort into each sale as longer-tenured employees and should be rewarded the same.
What would you do to address this problem?
Select an option from the choices below and click Submit.
Put all salespeople on the same commission plan regardless of tenure. Pay should be based on performance, not tenure.
Keep the commission plan, but find another way that high-performing employees can increase their pay, such as sales bonuses.
In sales, five years is too long to get tenure, and employees see this as unfair. Reduce the time it takes to get tenure from five years to three years.
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