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Capped Commission...... Why???

Having being involved in sales & recruitment for nearly 20 years, I still can't believe some companies choose to cap commission for their revenue generators.

I have always been lucky enough to work for companies that have offered uncapped earning potential however, within the last five years, I have worked for two companies, one of which had a capped commission structure with the other one not having any established commission scheme except the one I negotiated for myself.

It makes me wonder as to why a company thinks it is okay to pay commission up to a certain value and keep 100% of all future earnings past that point in the month, quarter or year. On top of that, why they would expect any decent salesperson or recruitment consultant to carry on trying to rake in more money for the company that is obviously only looking after their own bank balance. Sales is a tough job and you are usually against targets & KPIs to keep your management happy so why should you bust your gut after you have hit your target and then not earn beyond that?

If you want the best then you need to reward them. Decent sales people/recruitment consultants are not easy to find so when you have them then make sure you are doing everything possible to keep them! I would love a member of my staff to challenge me or make more money than I do as that means they are happy and my company balance sheet is very healthy as well. For sure other company perks like holidays, cars, team awards etc are important but trust me, after doing this for so many years, I didn't work the hours I did just to be restricted on what I could earn. It shouldn't cost the company anything if you have a good sales force because as long as they are covering their costs with their earnings and are making more on top of that, then sharing the profit with the people that made your company that money should be a pleasure! The more they earn, the more the company earns!

I know I may be stating the obvious, but when I keep seeing or hearing about jobs that have some sort of capped commission it just annoys me to think these companies expect their money makers to keep on working past that point. I guess that is why it is usually the same companies that have a high turnover of staff!

Thank you for reading.


Richard Khan Jr.
Managing Director
Limitless Consulting (UK) Ltd.
 
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