Salary and Commission Plans

Reception on a flat salary, doctors on a percentage of revenue, telesales on tiers, technicians on points — every group is paid differently. This screen defines the plan once; you then assign it and settle it per period.

Illustration of the Salary/Commission Plan screen

Area	What it does
1. Create	Defines a plan.
2. Search	Find a plan by name.
3. Status	Filter active or switched-off plans.

Defining a plan

A plan is made of components that add up. For example "Treating doctor" = a fixed component plus a tiered commission on revenue.

Illustration of the plan form

Area	What goes in
1. Plan name (required)	Name it after the group: Treating doctor, Telesales.
2. Visible	Switch off when the plan is out of use.
3. Component type	How this component is calculated — see below.
4. Role	The role the component applies to, when a plan differs by role.
5. The value field	Changes with the type: Fixed amount, the tiers, or the KPI criteria.
6. Add component	Adds another component to the same plan.
7. Save	Stores the plan.

The five component types

Illustration of the component types

Type	How it works
Fixed	A set amount each period.
Tiered commission	Revenue is split into tiers, each with its own rate; the part falling in a tier earns that tier's rate.
Passthrough commission	A single rate across all revenue.
Point bonus	Based on points accumulated in the period.
KPI bonus	Based on how far the KPI criteria were met.

Two rules for tiers and KPIs

Tiers must be continuous: the first starts at 0, they follow each other without overlapping, and leaving the last To empty means no upper limit. KPIs: the weights of the criteria within one component must total 100%.

One plan per group, not per person

Define plans by job type and assign them to whole departments. A plan per person means nobody dares change anything six months later.

Related

• Assign salary/commission plan — who is on which plan.
• Salary/commission periods — settling and reading each period.