risk for high employee turnover as stated above, most modern sales organizations don’t cap their reps’ commissions. So if your company caps commission to cut costs, your reps will know there are plenty of other employers out there who will offer them uncapped commission. Plus, a sales rep who reaches a commission cap is likely a top performer – the exact type of sales employee you don’t want to lose to a competitor.
It makes it harder to hire new talent
whether an organization wants to expand their team or needs to replace reps who are leaving, capping commission means it will face thailand phone number list an uphill battle in the hiring market. High-quality candidates will likely have a number of options when searching for a new role. If they have a choice, they’ll almost certainly choose an employer who doesn’t limit their earnings potential.
Think carefully before you cap
capped commissions come with disadvantages it goes beyond that that can hurt an organization in the long run. However, companies may benefit from a commission cap if they’re still ironing out their commission strategy or need to navigate a temporary b2b fax lead period of financial instability. Weigh the pros and cons carefully before capping your commissions — and re-evaluate as needed to avoid prolonged caps.