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June 30, 2010
Reviewing and Benchmarking Your Base Pay Levels and Commission Percentages

David Wudyka discusses revitalization steps in a BLR webinar entitled ‘Commission Pay Plans: How to Motivate Your Sales Staff in a Roller Coaster Economy’. He explains that one step which organizations can use in revitalizing their Commission Pay Plans (CPP) involves reviewing and benchmarking the base pay levels and commission percentages. The following is more information regarding what employers should know regarding pay level reviews and commission percentage packages:

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  • In current market conditions, it makes sense to find ‘benchmarks’ for your current CPP base pay and commission levels, comparing what you're offering against your competitors and peer organizations
  • That's easier said than done, of course. Finding comparative data can be a huge challenge
  • You can turn to published salary and commission surveys (Mercer, Watson Wyatt, Gartner, WorldatWork, etc.), online salary data (Payscale, BLS), association/trade organization surveys, and similar sources
  • Within legal limits, you might also consider talking with other Human Resources (HR) managers within your industry
  • You can hire a compensation consultant to conduct studies or gather this intelligence for you

David Wudyka, SPHR, MBA, BSIE, is the founder and managing principal of Westminster Associates (, a Massachusetts-based human resource and compensation firm that specializes in pay, performance, and productivity issues. He brings more than 30 years of professional HR and compensation experience to the table for clients around the country.

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