Is ‘Commission’ Becoming a Dirty Word?
‘We don’t work for commission, we work for you’
Walking through my local branch of the UKs largest electrical retailer you couldn’t escape that statement. It was printed on every price tag and every poster.
Flip this and you may think that if they worked for commission then they wouldn’t be working in your best interests.
Cross the road and enter one of the UKs largest mobile phone retailers. In their literature you’ll read…
‘This year we also made a big change to our Retail Reward Scheme; we scrapped our commission-based pay structure and introduced our new pay deal, which encourages better team-working, and more emphasis on providing great customer service’
Flip this and you may think that working on a commission-based pay structure does not encourage team working and an emphasis on greater customer service.
I’ve also noticed a growing tendency for financial services businesses to start advertising the fact that their staff do not receive commission…
…and I have sat in many client presentations where the fact that I was not remunerated by commission has been a big positive for the client.
Regular readers of this blog will know I believe that rewarding purely for sales achievements as opposed to providing a great service and experience has driven poor practices and behaviours in the recruitment industry.
Now it would appear that leading businesses in other sectors may be thinking about how commission based rewards affect behaviours…and seeing a no commission approach as giving them a competitive advantage.
So is ‘commission’ becoming a dirty word?
How can you provide an impartial, collaborative, customer centric service whilst incentivising individuals with commission?
Does a no commission policy give you a competitive advantage?
Let me know what you think…