Commission

Creating a commission structure can be crucial for motivating consultants and aligning their efforts with business goals. Here’s a suggestion for a commission structure based on the information provided:

Commission Structure Suggestions:

1. Base Salary: £25,000

2. Commission Rate:

3. Tiered Commission: Implement a tiered commission system where the commission rate increases as consultants achieve higher sales thresholds. For example:

   • £0 to £30k in fees: 5% commission
   • £30k to £60k in fees: 7% commission
   • £60k and above: 10% commission

4. Flat-Rate Commission:

5. For simplicity, you might consider a flat commission rate across all fees. A suggested rate could be 10% of each fee achieved. This would mean:

   • For a £3k fee, the consultant would earn £300.
   • For an £18k fee, they’d earn £1,800.

6. Performance Bonuses:

7. Introduce performance bonuses for reaching specific targets or completing a certain number of placements in a quarter. For example:

   • £1,000 bonus for reaching £100k in billings in a quarter.
   • Additional bonuses for exceeding targets or for closing high-value deals.

8. Retention Bonus:

9. Offer a bonus for retaining clients or ensuring repeat business. This could be a small percentage of fees generated from client renewals.

Example of Earnings Potential:

Assuming a consultant achieves £50k in fees within a quarter with a tiered commission:
– For the first £30k: 5% = £1,500
– For the next £20k: 7% = £1,400
– Total Commission = £2,900 in addition to base salary.

Additional Considerations:

• Clarity and Transparency: Ensure that the commission structure is clearly communicated and understood by all consultants.
• Regular Reviews: Regularly review the structure to ensure it remains competitive and aligns with business goals as the market evolves.
• Incentivizing Teamwork: Consider adding a team-based incentive if collaboration is essential for achieving results.

By creating a structured and motivating commission system, you can help drive performance while rewarding your consultants for their hard work. Hope this helps!