“It’s probably going to become more prevalent. As you go through economic times, it’s far less risk to an employer. If I can say a $30,000 base salary with a higher commission … if you make the sales, great. If you don’t, worse case, I’m out $30,000.
“When you move to a $70,000 base salary with low commission, my risk [as a an employer] is obviously significantly greater, and your upside as an employee is significantly lower.”
‘DRIVEN BY THE NUMBERS’
O’Rourke said his data suggests that sales staff are willing to take cuts in base pay if they can then make more money with commission. He expects that over the next 12 months, more pay plans with lower base salaries and higher commissions will become common.