Your boss thinks you should implement a salary plus commission plan. You have a meeting with her to outline the drawback(s) of this type of plan. Among the drawback(s) you will discuss include:

Question

Quizplus · Accepted Answer

All of the above are valid drawbacks of implementing a salary plus commission plan. It is more complicated to explain, as salespeople may not fully understand how the commission structure works. It is also more costly to administer, as commission payments need to be tracked and calculated separately. In addition, sales managers may lose control as salespeople may become more focused on earning commissions rather than overall sales objectives. Finally, if an incentive ceiling is put in place, it could limit the motivation of some salespeople who may feel they cannot earn more than a certain amount.

Your Boss Thinks You Should Implement a Salary Plus Commission