It's because corporate accounting is screwed up and management wants it
that way.
Revenue coming in gets credited to the department and hence to the
department's manager, while the department's payroll costs are counted
against the individual employees.
Makes management look good and justifies their big bonuses, and also
justifies all the layoffs when it's time to "cut costs"
It's really stupid, short term, self-defeating thinking, but by the time
it crashes the company, management will have moved on to greener pastures.
Mostly it's hard to get management to understand this because the size
of their bonuses are contingent on just how much they DON'T understand it.
From: "John Mullan"
Actually the timing is a bit different. Circuit City eliminated the
commission plan in 2002, along with those salespeople who were the highest
earners, and made everybody that was left hourly. In 2006 they shot
themselves in the other foot by eliminating those who were earning above a
certain figure and then offered to rehire them at a lower wage. The chapter
11 filing came in Nov 2008, the decision to liquidate in Jan 2009 and the
doors closed for the last time on March 8, 2009. I was there for all of
this.
When CC was commissioned there was a salesman in my store that never worked
more than 30 hours in a week, yet earned more than the store manager. I
never figured out their logic in letting someone like that go, he wasn't
costing the company money, he was making it for the company and they were
only paying him a very small percentage of what he sold. I can't remember
the exact percentages but they had three rates for products, accessories,
and extended warranties. Warranties had the highest commission rate.
jm
----- Original Message -----
From: "Doug Franklin" <[email protected]>
To: "Pentax-Discuss Mail List" <[email protected]>
Sent: Thursday, February 04, 2010 8:42 AM
Subject: Myopic Bulls**t Artists
> On 2010-02-04 8:22, William Robb wrote:
>
>> If you drop 10% of your
>> customers every year, how many years does it take before you can't get
>> new ones because you've dropped them all?
>
> The thought that came to my mind was the company, I think it was Circuit
> City, who fired all of their highest producing salesmen a few years ago,
> because they were the most expensive (highest paid). The company then
> filed for bankruptcy within about a year and has since been liquidated.
>
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