Uh oh! It looks like there is trouble brewing within the rank and file of the Rogers and Fido sales staff, assistant managers, and employees at the director level. A decision by the Rogers finance department to cut sales commission by as much as 50% has seriously irked the sales staff who played an integral role in the approximate 30% increase in sales since the beginning of 2008. Normally one would assume that a company wouldn’t mind fairly compensating their employees with commission for all of their hard work and doing such a damn good job at selling their products and services, but as we have seen so many times in the past, Rogers isn’t a normal company.
Consider the following as an example of what would happen to the average large store employee working on commission-based sales. Under the old system, signing a customer up on a 3-year contract with a monthly plan above $40 would net a $25 commission. With the cut the same employee only stands to make $16.20, a decrease of 35%. If the monthly plan is under $40 a month the new commission system makes for a cut of 34%.
- Single options now only pay $1, a decrease of 50%
- Value packs now only pay $3.80, a decrease of 24%
- Non-term data now only pays $9, a decrease of 10%
- Month-to-month activation now only pays $3, a decrease of 40%
- Commission on accessories has decreased 30%
Added up, the average employee of a large store stands to lose over $500 a month in commission because of these cuts at a time when the amount of sales are so high that many stores are paying 50% more than their budgeted commission because of a drastic increase in the volume of sales due to the iPhone 3G, lower data costs, and new low-cost monthly plans.