This article will show you how to set up your staff Commission structure for Services and Products.
In this Article
Video Guide
Creating Your Commission Plan
To begin creating your Commission Plan, go to Manager > Commission > Add Commission Plan.
Enter a name for the commission plan. This name is just for your reference, so you can easily recognise which plan you’re assigning to each staff member.
Then, select +New Service Commission or +New Retail Commission to begin defining your Commission Plan.
Defining Your Service Commission
To begin creating your Service Commission, set a percentage amount in the Commission rate field.
Commission is always calculated on the Net amount (before tax).
If your commission has multiple tiers/is based on targets, use the For sales up to option to set your target levels, and click +Add tier to include more tiers.
For instance, in the example above, a staff member would not begin earning commission until they have reached $300 in sales. Once they exceed $300, they will earn 7% on additional sales up to $700. After surpassing $700, they will start earning 12% on any further sales.
When you're happy with your commission, select Done to finish creating this Service Commission.
Applying Commission Only to Certain Services/Categories
If this commission should only be applied to specific services/service categories, disable the Set as default commission for all services toggle, then select the services/whole categories you wish to apply the commission to, and click Done to finish.
Repeat the steps above to add more Service Commissions within the same plan, and then assign each one to the relevant service categories (or individual services).
If one commission rate applies to most services, set that up first and keep Set as default commission for all services enabled. Then create additional Service Commissions in the same plan for any exceptions, and assign those only to the specific categories/services that need a different rate.
Defining Your Retail Commission
Retail commission lets you reward staff for product sales. In Phorest, you can set this up in two ways: Value-Based (commission based on retail sales value) or Retail-to-Service (RTS) (commission based on a staff member’s retail-to-service ratio).
Commission is always calculated on the Net amount (before tax).
Option 1: Value-Based Retail Commission
To begin creating a Value-Based Retail Commission, enter a percentage amount in the Commission rate field.
If your retail commission has multiple tiers/is based on targets, use the For sales up to option to set your target levels, and click +Add tier to include more tiers.
Applying Commission Only to Certain Brands/Products
If this commission should only apply to specific products or brands, disable the Set as default commission for all retail products toggle, select the products/brands you wish to apply the commission to, and click Done to finish.
Repeat the steps above to add more Retail Commissions within the same plan, and then assign each one to the relevant brands (or individual products).
If one commission rate applies to most of your retail, set that up first and keep Set as default commission for all retail products enabled. Then create additional Retail Commissions in the same plan for any exceptions, and assign those only to the specific brands/products that need a different rate.
Option 2: Retail-to-Service (RTS) Commission
RTS Commission rewards staff based on their Retail-to-Service ratio, rather than just the total value of retail they sold. RTS % is calculated for the selected period as: (Retail Sales ÷ Service Sales) × 100.
When creating an RTS retail commission, you set RTS brackets. Each bracket includes:
- Commission rate (the % applied to retail sales once that threshold is met) and
-
RTS % threshold (the minimum ratio a staff member must reach).
The Summary field will give you an explanation of your commission in real-time as you create it. Use this information to verify that the commission you're creating is set up the way you want it.
The lowest RTS bracket acts as a minimum threshold. If a staff member’s RTS % is below that threshold for the period, they won’t earn retail commission for that period.
Once a staff member meets an RTS bracket, the commission rate from the highest bracket they qualify for is applied to their retail sales for that period.
Select Done to save your RTS commission once your brackets are set.
Example of RTS Commission
In the image above, we have an RTS commission plan structure like this:
- 10% commission when RTS % is 15% or above
- 15% commission when RTS % is 20% or above
- 20% commission when RTS % is 30% or above
Here's an example of how that would apply:
- Total Service Sales: $10,000
-
Total Retail Sales: $2,000
The RTS % for the above would be ($2,000 ÷ $10,000) x 100 = 20%.
Because 20% meets the 20% RTS bracket in the commission plan, the staff member earns a 15% commission on their total retail sales.
15% of $2,000 = $300.
Reporting: Applying Higher Commission Values to Full Amount
When creating a tiered/target-based commission, you can adjust your reporting in order to apply the higher % commission to the staff member's total amount. For example, in the image below, the staff member would get a 12% commission on their total service sales.
This setting cannot be applied to RTS Commission Plans.
You can do this by adjusting your reporting settings by going to Manager > Reports > Staff, then clicking the cogwheel
Then enable the Apply higher commission to full amount setting and click save.
If you are using the older Staff Commission Detail or Staff Commission Overview reports, you can enable the Apply Higher Commission Brackets to Full Amount setting before generating the report.
Next Steps!
Once you've created all your commission plans, you'll need to assign one to your team members. Click here for a guide on how to assign a commission plan to a staff member.