Configuring Tenure Based Commissions

A tenure is the period for which an employee has worked in your organization. You can award commissions for employees who complete a certain tenure, say 5 years. You may also use tenure based commissions as a tool to retain employees and offer this commission as incentive at regular intervals, say after employees complete 1 year, 2 years, 3 years and so on. 

Tenure commission is calculated as a percentage of the total revenue generated by the employee over a pay period. For example, you may give a tenure commission of 5% to an employee who has completed 2 years in the organization. If the employee got in a revenue of $400 in a pay period and completed 2 years, then the employee earns a tenure commission of $20 (5% of 400). 

To define tenure-based commissions:

  1. Click the Employee tab on the main menu.
    The Employee Dashboard appears. 
  2. Expand Settings
  3. Click the Tenure link. 
  4. Enter the commission percentage and select the number of years (of service) from the drop-down list.
  5. Click Add.
    In the following screenshot, an employee who completes 1 year will earn 5% commission on total revenue earned over a pay period, an employee who completes 2 years will earn 10% commission on total revenue earned over a pay period. 
    Note: To remove a commission slab, click the Delete (red cross) icon.

Worked Example and Impact on Employee Reports

Consider the following:

Settings Values
Commission percentage 5%
Employee tenure 1 year
Revenue generated by the employee during the latest pay period  $3000
Tenure commission earned at the end of 1 year $150
(that is, 5% of 3000)

If this is the scenario, the Employee Payroll Details Report displays the Tenure commission in the Bonus and Penalty Details section. See the following screenshot for reference. 

Best Practise: To view all the columns of the report, always export these reports - the UI shows fewer columns. 

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