Question

Your salary is a combination of basic salary + commission. Commission is based on whether the company and investors achieve the desired return. Is this a problem?

Critically analyse the highlighted statement to include any ethical considerations. Plus, develop a new policy framework for the company. What recommendation will you make?

Answer 1

As of me personally, I think the straight commission world offers greater opportunity and higher overall potential, but everyone's situation is different and what is right for me may not be right for the next person. So, with that in mind, let's take a look at each.

Salary + Commission

Advantages:

1. Economic security: In a job with a base salary, you know you'll always have a paycheck and paying your bills will never be an issue.

2. Stability: Along with the steady paycheck, most jobs offering a base salary generally expect you to stick around for the long-term.

3. Benefits: With few exceptions, a salaried base + commission job will offer health insurance, possibly along with other fringe benefits.

So I would like to recommend that the company should give attractive commissions to to motivate workers in doing their work more efficiently which ultimately benefits to the organisation