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Do Commission Clawbacks Help or Hurt?

Reducing or reclaiming a salesperson's commission isn't necessarily a motivating move—and it might even be illegal.

On the surface and from an owner’s or manager’s point of view, commission clawbacks—that is, reclaiming or reducing earned commissions if sales goals are not met—might seem to make sense. Isn’t a commission supposed to be an incentive for closing sales? And if so, inversely, shouldn’t you take that commission away if that goal hasn’t been met?

But on this episode of Straight Talk!, Dave Kahle, owner of Kahle Way Sales Systems, shares his thoughts on the problem with this outlook and why commission clawbacks are not a good way to motivate your sales staff.

To learn Dave’s positive strategies that can help motivate your salespeople sell and close successfully without defeating their morale, watch the video or listen to the podcast below!

Jeff Cross

ISSA Media Director

Jeff Cross is the ISSA media director, with publications that include Cleaning & Maintenance Management, ISSA Today, and Cleanfax magazines. He is the previous owner of a successful cleaning and restoration firm. He also works as a trainer and consultant for business owners, managers, and front-line technicians. He can be reached at [email protected].

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Do Commission Clawbacks Help or Hurt?
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