Pay for non-traditional position
Frenchie
116 Posts
We have a new position which requires pre-selling product two days per week and merchandising accounts the other three days. I have this position classified as non-exempt. Currently commission is paid for product sold on the two days. The other days the employee receives an hourly rate. Last week the employee took a paid rover day. Generally, with an hourly associate they receive 8 hours pay at their current rate. The question that payroll asked me was What if he took off on a day he sells? How do we pay him then. I suggested coming up with an hourly rate based on W-2 earnings and use that times 8 hours regardless of what day he is off. Another alternative would be to not make any adjustment to his pay when he is off on a selling day (someone else would do the selling and be compensated hourly. I'm not sure if that is the best way to do it.
Is there anyone out there that has a similar position? If so would you share how you pay that position?
Is there anyone out there that has a similar position? If so would you share how you pay that position?
Comments
If I were him, I'd be smart enough to request the day off on a day for which I would receive automatic straight time, then I'd at least get something.
You didn't ask for suggestions; but, would it not make more sense to pay him an hourly rate plus commission? The current setup implies to me that he will work hard only on commission days and coast on others.
A Rover day is a paid personal day. Under company policy he is entitled to three per year. If he were paid commission only, he would get his full commission as if he worked all week. Hourly associates receive eight hours pay at their current rate. He doesn't fit in either category.
Your point is well taken about the pay setup we have. Can you elaborate on your suggestion of hourly rate plus commission? Would we reduce his commission rate because we would spread the pay over five days instead of two?
>and works well. They are paid commission
>monthly. You need to be very carefuly with
>commission however if they work overtime as you
>will have to go back and calculate what they
>would have gotten paid for overtime if they
>earned the comission during that month. Finally
>set up a spreadsheet to handle this. Hope this
>helps.
This is helpful, thank you. Is it possible for you to share how you established the pay. Did you look at what you wanted to pay the position(ex. $45,000 yr) and then determine the hourly rate and commission amount based on that?