Commission Based Pay?

Check the new IRS changes to self employment. Last year they was making changes that made it to where if a 1099 contractor was making a certain percentage of thier money from one business, the irs is trying to force them to switch to w2 pay. I haven't seen how this turned out, if it's already in force or about to be. I know of several roofing companies that have already made the change. It has been the norm to use commission based pay to thier project managers/sales team. If this is in effect, that may make it difficult for you to switch to a commission pay structure.

Honestly, the issue with commission pay structures is that a lot of the workers have a difficult time making a consistent income to start, and I've seen a lot of people lose income they worked for because they either get fired or quit. Then the company keeps the jobs they sold and the commissions they would have had to pay. A worker takes a lot of time building a pipeline, then loses it all. Because the company designs the contract a certain way. This has created mistrust for these types of pay, and makes it more difficult to find workers, especially knowledgeable and experienced ones. No one wants to work for free. The best way to do it in my mind is to set up a dual pay option, pay a minimum salary so they have consistent income, this is a w2 wage, and then create incentive by adding the commission pay on top of it. You take care of your employees better, they are happier, and a happy worker that's not in fear of the bills coming in is ALWAYS a better more productive salesman.

Just my opinion.