Recruiters urged to focus on commission structures
17 February 2015
Recruiters that are launching their own recruitment businesses must examine the ins and outs of the commission structures they set up to reward their teams, an employment lawyer has urged.
Tue, 17 Feb 2015
Recruiters that are launching their own recruitment businesses must examine the ins and outs of the commission structures they set up to reward their teams, an employment lawyer has urged.
Matt Robinson, an associate in the London employment department of law firm Osborne Clarke, told Recruiter that business owners should ensure they have covered “all possible angles and all stages of engagement which affect commission within the scheme terms and conditions”.
Robinson said such points might include:
He suggested using a centralised document to set out the general terms and conditions of commission schemes and to detail all specific definitions. “Then have shorter specific policies for the different types of consultant,” Robinson added.
“Include wording that gives the company the flexibility to amend the commission structure,” he said. “Also, ensure schemes are reviewed each year.
Robinson emphasised: “Above all, use plain English and avoid jargon.”
He also urged companies to “get it right at the start”, adding: “Trying to amend commission structures down the line can be difficult and can be damaging for employee relations.”
(To gain more insight into becoming a recruitment entrepreneur, see Recruiter’s brand-new supplement, "Starting your own recruitment business”, with the March issue of the magazine, which lands on desks this week.)
Matt Robinson, an associate in the London employment department of law firm Osborne Clarke, told Recruiter that business owners should ensure they have covered “all possible angles and all stages of engagement which affect commission within the scheme terms and conditions”.
Robinson said such points might include:
- Who is eligible to take part in the commission scheme?
- When does eligibility become entitlement to receive payment?
- What happens when employment ends?
He suggested using a centralised document to set out the general terms and conditions of commission schemes and to detail all specific definitions. “Then have shorter specific policies for the different types of consultant,” Robinson added.
“Include wording that gives the company the flexibility to amend the commission structure,” he said. “Also, ensure schemes are reviewed each year.
Robinson emphasised: “Above all, use plain English and avoid jargon.”
He also urged companies to “get it right at the start”, adding: “Trying to amend commission structures down the line can be difficult and can be damaging for employee relations.”
(To gain more insight into becoming a recruitment entrepreneur, see Recruiter’s brand-new supplement, "Starting your own recruitment business”, with the March issue of the magazine, which lands on desks this week.)
