Question

Why do you think that commission-based pay is such a popular topic among human resource professionals?

Answer 1

In a commission-based pay plan, the sales employees receive a payment based on the percentage of total sales an employee makes. Today it has become a popular topic for the human resource professionals because it motivates the employees to perform better, more efficiently or more effectively to convert sales. The human resource professionals can effectively control employee costs or ensure optimized efficiency in selling by only paying employees for the results that they give to the company. It contributes in improving the company's cash flows because it means that employees are only paid when they are generating sale and contributing to company's revenue