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What is the formula for basic salary plus commission?

The basic salary plus commission method is to increase the basic salary, which increases fixed costs and directly takes away profits. Moreover, if the proportion of the basic salary is larger, it will also reduce the creativity of employees.

Although adding commission points is better than adding basic salary, under the same performance, the company's cost and expense ratio will increase, relatively speaking, the profit rate will decrease, and the incentive of increasing points is time-sensitive. , generally there will be some effect in the first one or two months of increase, and then it will return to the past and normal state. Moreover, if the number of employees is reduced, the employees will not feel the need, and if the number of employees is increased, the company will not be able to bear it.

Benefits of basic salary and commission

For some salesmen who have just joined the job, the first three months are difficult because they are not familiar with the business and the sales skills, so it is very difficult. It’s hard to make money and the pressure is high. In addition, companies have relatively high billing requirements for employees.

Therefore, some unlucky salesmen will find it difficult to survive these three months. However, if the assessment cycle is extended, companies will easily lose money. Therefore, there must be a salary model that allows employees to earn some money by taking on other tasks while paying bills.

The so-called PPV output value quantified compensation model refers to the distribution of benefits among employees’ job responsibilities, work content, work projects, work results, etc. in a way that can be quantified and assessed, forming a kind of overwork. A generous benefit distribution mechanism.