Changing Commission Schemes

[AmyK]

Hi All,

Id like some advice on best practice for amending employees commission schemes. These are discretiary, non contractual schemes.

Any advice/experience appreciated

Amy

[DaveG]

Amy,
Regardless of whether the commission scheme is discretionary and non contractual, if it is already in place and has been for some time, then you need to take great care implementing any change. People don't like their remuneration being meddled with!

There probably isn't any 'best practice' per se, because each situation will be different. Is there a specific aspect you are thinking about ? (what are you looking at changing?)

[AmyK]

Looking at introducing completely new scheme. It would give the same ability to earn but would be structured differently. Normal practice in the UK would be to hold a consultation period (say 30 days) regarding the proposed changes and then implement at the end of the period. Would this be suitable here?

[DaveG]

Amy, that sounds very reasonable, providing it is a genuine consultation period. To get "buy in" you could also point out that you are formalising a benefit scheme which is currently discretionary (assuming that is what your intention is!). This in itself will give the staff more security in terms of their remuneration.

Just make sure the new scheme is fair and that they will have the same opportunity to earn commission and at the same levels. It would also be a good if you can anticipate any obvious resistance or objections.

Of course this is just my personal opinion - the usual disclaimers apply