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COMMISSION PLAN BUILDER



Welcome to Rice & Co’s recruitment industry commission plan builder. Let us guide you through a series of questions to build your own unique plan.

Once completed you can add some billing data to see how your plan performs against other actual commission plans currently existing in the NZ recruitment market.

You will be able to save and share your commission plan once completed.

READY TO GET STARTED?

  • If your plan is going to be commission-only, just put a 0 for base salary

$
Will your plan have different commission percentages for Contracting vs Permanent billings?
  • Contracting billings are made up of temp and/or contracting margins billed; Permanent billings are made up of fees billed for permanent and fixed-term placements, temp-to-perm fees, and retainers.

Will you have a threshold in your plan?
  • A threshold is the amount that must be reached before commission is payable. If you want a plan that pays commission on all billings, please select ‘no’.

What will you set the threshold against?
  • Select ‘billings’ if you want to pay commission on billings that exceed a certain threshold amount. If you want to work out the commission first, and then deduct the threshold from that (for instance to cover desk costs), select ‘commission’.

OK, so you've set a threshold on your plan, once this is reached will you pay commission only on billings over the threshold, or on all the billings in that period?

How will the threshold amount be calculated?
  • Select multiplier if you want a threshold amount to be a multiple of the base salary, meaning it will change as the base salary changes

  • Choose the billing period for which you would like to set a threshold and calculate commission payable against.

$
X
salary
per
Now it's time to look at how you want the commission to be structured. First up, will your plan have a sliding scale?
  • You cannot select this because you intend on paying different commission percentages on Contracting vs Permanent billings. A sliding scale is where the percentage amount of commission payable differs and increases as higher levels of billings are achieved in a period.

OK, so the commission percentages will always stay the same. Please set your percentage amounts now:
  • This is the percentage used to calculate the commission amount payable on billings over the $ threshold once the $ threshold is reached

CONTRACT BILLINGS
PERMANENT BILLINGS
%
%
  • The first option would be if you want the commission percentage to increase across all billings as the total amount billed increases. The second option works the same way, but enables you set a top band that has a higher percentage just for the billings exceeding that top band entry level. The third option is the most common, where the commission percentage increases incrementally and applies to billings within each band as they increase.


Now we need to set up the parameters for the different sliding scale bands. In the first box enter the starting amount for the band, then enter the highest amount for that band, then tell us what commission percentage applies to that band: In the first box enter the minimum amount for the band, then tell us what commission percentage is to be applied when that minimum amount is reached. In the first box enter the minimum amount for the band, then tell us what commission percentage is to be applied when that minimum amount is reached. With this sliding scale type, all billings over the highest band's mininum amount will be commissioned with a different percentage to the rest of the billings.
  • We have set $ as the start of the sliding scale bands since this is the threshold already calculated on this plan. Click ‘Add Another Band’ to set new parameters for the next band up as the billings increase. If you want to leave the top band uncapped, which will usually be the case, then leave the last ‘Max Amount’ box empty.
MINIMUM AMOUNT
COMMISSION PERCENT
MINIMUM AMOUNT
MAXIMUM AMOUNT
COMMISSION PERCENT
Add Band Delete Band
Would you like to set an extra ‘kicker’ bonus on this commission plan?
  • Select this if you would like to add an extra reward for achievement of a ‘stretch’ target over a certain period.

How would you like this ‘kicker’ payment to be calculated?

OK, now we need to know what extra percentageextra amount should be paid, over what billings amount it should apply, and over what billing period it should be calculated against:
  • For example, if you want to pay an extra 20% commission on all billings exceeding $50,000 in a month, you would enter 20%; $50,000; Month in the boxes below.For example, if you want to pay an extra $2,000 commission on all billings exceeding $50,000 in a month, you would enter $2,000; $50,000; Month in the boxes below.

$
%
ABOVE
$
PER
Will this plan have a ‘clawback’ function?
  • This is a mechanism that de-risks low billings performance, but it is reducing in popularity. If a billings performance falls short of the threshold set, the clawback function adds that shortfall to the threshold in the next billings period, meaning more will need to be billed to exceed threshold and reach commission.

We’re almost done, now you need to decide what billings cycle this plan will apply to:
  • Depending on the cycle you select, you will next be asked to provide billings data to populate those cycles

It’s almost time to bring this commission plan to life! Please enter billings data into the billing cycle fields below (real or projected, this tool is totally anonymous). Click "Finish" to complete building your unique plan, and then see how it compares against other real recruitment commission plans in the current NZ market.



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