Employees nowadays are easily distracted and the monotonous stable paying jobs are boring after a little while. This leads to employees jumping jobs constantly. This constant jumping by employees leaves the company without a suitable replacement and lots of losses. Not to forget the loss of money that is used to train new employees that take their place.
Employees are motivated by constant pay hikes that keep their mind off the thought of quitting. These constant hikes can not be possible by every firm. Incentives to employees might lead to other employees being rejected. Shelling out incentives on all of the employees makes it unlike an incentive. There is another way that employees can be motivated, by using a technique that work quite well with employees that hate being ordered. Commissioning is the process of paying employees based on the percentage of the money they earn after the completion of a project. This makes the employee feel like a part of the organization and gets her further involved. Commission are usually paid to contract employees or to the services rendered by professionals like real estate agents and so. It has been introduced into organizations as a way to push employees to work harder for the company and assure them that they are not missing out on the fun part of an organization.
Commissions to employees are similar to the ones paid to other professionals whose services are required only occasionally. But unlike them, the employees are not let off. The commission is given separate from the monthly pay and is mentioned as an extra in the final tax documents. It varies from 0.5% of the money profited by the organization to as much as 10% depending one the amount of work done and other factors. It does not have to be paid every month.