Losing 80 - 90% Commissions on My Current Job Once The New Year Starts. Stay or Go?

Aerith-Waifu on 29/12/2023 - 20:42
Last edited 30/12/2023 - 20:45

My workplace sent us an email about 3 weeks ago indicating the old commission structure will be no more and be replaced by a more sales oriented structure meaning it will be judged on every category rather than total sales $.

The new commission structure will start in 3 days which is the 1/1/2024.

Today we finally got detailed information on how the new commission structure works and I have calculated I will lose between 80% - 90% of my commissions using the sales figure I achieved in the past.

On average I get around $2300 a month. So a loss of 80% means I will be getting $460 a month on commission compared to $2300, and only getting $230 with 90% lose on commission.

The job itself is good, enjoyable and we are not at the store all the time, the new manager is nice and is in charge of 2 stores so is hardly ever around which leaves the 2 older supervisors in charge 90% of the time so far. The 2 older supervisors has been with the company for around 7 and 10 years so they knows the whole company inside and out. These are nice folks. As long as we do our job and achieve our KPI they don’t mind if we leave 30 - 60 mins early if the store is quiet. Or 20 - 30 mins late if we caught in the traffic in the morning.

Another aspect of the job is for 1-2 days a week, we can op to work from home. (If we chose to) Which is another big plus when you have kids.

So overall the job is good with nice people, however the cut in commission is making me think as it means a drop of almost $25k to $30k in income yearly which is more than the cost of a new car (Unless you are a Westpac Investment Banker)

The question is, would you stay for the good people and take the $25k to $30k pay cut? Without the commission we are on around $48k a year. Which isn't something to raise eyebrow about considering most of the OzBargain guys earns $150k a year here. (If you believe…..)

Or start look for another job now with the new year just around the corner?

Poll Options

  • 20
    1: Stay and see what happens
  • 119
    2: absolutely without a doubt leave and look elsewhere
  • 9
    3: Stay but just slack off and don’t do much work
  • 3
    4: Go back to Casual and just work 10 - 15 hours there
Education & Work

Comments

  • Sinnerator on 30/12/2023 - 08:56
    +2

    your boss just told you to go eff yourself

  • Dollar General on 30/12/2023 - 09:25
    +2

    I’ve been through this scenario with a couple of businesses. Sales will tumble and they will change the comms structure again and again, meanwhile sales people will leave.

    There’s not many businesses left that respect the hard work that goes into generating and closing sales.

    • Aerith-Waifu on 30/12/2023 - 13:18

      Agree on this. I have seen many good people leave as a result of this in my previous roles

  • blitz on 30/12/2023 - 09:33
    +1

    Are owners reducing salaries to inflate net profits in preparation to sell the business?

    • Aerith-Waifu on 30/12/2023 - 13:19
      +1

      Oh! That’s a possibility for sure. But we won’t know at store level

    • FimpBARGAIN on 30/12/2023 - 19:28

      Rofl

  • 2esc on 30/12/2023 - 09:48
    +3

    Sadly everyone is replaceable it would only be a problem if most staff quit at or near the same time.

    • Aerith-Waifu on 30/12/2023 - 20:35
      +1

      Or calling sick on the same day. I think that will be more effective.

  • FimpBARGAIN on 30/12/2023 - 19:13
    +1

    What sort of work do you do? With this new adjustment are you still paid at least the award rate per hour?
    Sounds like you pay is being cut in half, and not by accident. I'd start putting out feelers and at least go to some interviews to test the market

    Ps- I've worked for companies with similar bonus structures, very rare to get the full amount as it's normally graded or they set it up so certain things need to be achieved for it to trigger at all.
    Eg, if company doesn't do "x" million in turnover then no bonuses (completely out of your control and a real motivation killer!)

  • Aerith-Waifu on 30/12/2023 - 20:38

    Sounds about right, my role is Sales Consultant in store and Online, the structure of the business is essentially 50/20/30 (In Store, Site Visit, Online), online is the easy, its the onsite which is tricky as it does require us to travel to the site and often than not, we gave a quote and never to be heard back again.

    What you did previously sounds like what we are about to implement.

  • BewareOfThe Dog on 31/12/2023 - 10:20
    +2

    I was in a simulcast situation to yourself 15 years ago, where they changed my commission structure. That combined with working for an angry little man, caused me to walk away from a company, that i worked my guts for, over the previous 14 years.

    All the best OP.

    We are all expendable. They'll just find someone else that is desperate for a job.

    • Aerith-Waifu on 31/12/2023 - 17:44

      Well you are pretty much the same as our oldest employee than, been with the company for years. Guess loyalty no longer pays.

  • McSquintus on 02/01/2024 - 12:01

    Sounds like they might also be trying to get people to resign as opposed to offering a redundancy package. I would say definitely start looking elsewhere but it will also take time so you can 'wait and see' what happens at your current company.

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