Insights

For as long as I can remember, there has been a debate about the merits of individual versus team commission. So which is best?

The advocates of individual commission say that it allows them to attract and retain the best people in the industry. This is true but paying individual commissions can create a whole raft of other problems. The first is that it is sometimes very difficult to determine who was responsible for producing a sale. Was it the negotiator who originally registered the applicant, the one who persuaded them to view the property, the one who conducted the viewing, the one who negotiated the offer or the one who saved the sale when it was about to go wrong? It is quite common for these things to have been done by several different people.

The second problem is that individual commission can cause negotiators to give poor service to customers that will not earn them a fee. During a mystery shopper survey, we found a sales negotiator who just put the phone down on callers who wanted the lettings department because he didn't get paid to deal with them properly. 

The third problem is that regular disputes over commissions can cause friction between different members of the team. Sometimes the working environment becomes so poisonous, the good staff leave because they cannot stand it any longer. 

Team commission fosters a much better working environment but it causes its own problems. It is much easier for poor performers to hide their results. It is easier for lazy staff to coast and the team can become quite resentful if they think that other staff are not doing their fair share of the work. 

So which is best? My own preference in most parts of the country is for team commission but with individual targets and prizes for outstanding performance. Several of my clients operate such a system very effectively and it seems to strike a good balance between teamwork and individual recognition.

The exception is Central London where individual commission is so prevalent that you may have no choice but to accept it. If you do, you will need a strong manager to ensure that all callers get an acceptable level of service. You will also need to treat commission disputes fairly. 

With these provisos, either system can work well but I am seeing a slow move away from personal commissions in most areas of the country and it seems likely that this trend will continue.

Adam Walker is a management consultant, business sales agent and trainer who has worked in the property sector for more than twenty-five years. 



www.adamjwalker.co.uk