Tiered commission by productivity can be calculated based on All Revenue Earned or Amount Above Tier. You can set the base rate that the commission is paid on for the first tier and then add as many tiers as you like. This can be configured on each staff member's profile once compensation tracking is enabled.
- Amount Above Tier - This setting applies an incremental commission for each productivity threshold achieved.
- All Revenue Earned - This setting applies only one tier, the one which matches the overall productivity.
We will now look at how the commission is calculated for both options.
Pay Cycle - Weekly
Staff - Kelly Mae
Clocked hrs - 5
Service Revenue - $380
Product Revenue - $250
Service productivity - $380 / 5 = $76
Product productivity - $250 / 5 = $50
Kelly has 3 tiers for tiered by productivity:
-
Above $0 commission is 10%
-
Above $30 commission is 20%
-
Above $45 commission is 40%
If the Amount Above Tier option is selected on the staff profile, the commission will be calculated as (productivity - tier threshold) x tier % x clocked hours.
Service commission = ($76 - $45) x 0.4 x 5
($31 x 0.4) x 5
$12.4 x 5
$62
Product commission = ($50 - $45) x 0.4 x 5
($5 x 0.4) x 5
$2 x 5
$10
$30.4 x 5
$152
Product commission = ($50 x 0.4) x 5
$20 x 5
$100
*Please note that if a discount is added to a ticket, the commission will be based on the post / pre discount settings.