Establishing an Employee Compensation System (20 lines)

Question 1

Management perspective: How can we help you make more money

Answer 1

Don’t punish them for making too much money

Eliminate expense accounts except for company mandated activity
–Take 20% to the bottom line, Put 80% in company commissions

Question 2

New Employee: Base or Draw?

Answer 2

Base= a base play + commision
Draw= future commission
Have new member choose the Draw option
What are you doing and how well?

Question 3

2 things to avoid

Answer 3

Role ambiguity: Not knowing what you are getting evaluated on
Role conflict: What works for you won’t work the employee

Question 4

Structure of a system: Start with marketing objectives

Answer 4

Marketing objective (what do you wanna achieve)
Set a reward system
Rewarding services

Question 5

Implementing a system: Be simple

Answer 5

Create a game situation
Set a policy: Quota will moderately rise
Some plans are telling you: It is in your best interest to stop working