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I am hiring few Sales staff where they can earn more Sales Commission and less basic salary. In order to be fair with them, we know they can not earn the Sales Commission for at least 3-4 months from the joining date. Therefore, I am planning to give them an allowance for this 3-4 months in addition to the basic salary so that they will be happy until they start getting Sales Commission from month 4.
How can I call this allowance in the employment offer? I want some help to write this in the offer letter
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Nomenclature is not that difficult, but the manner & quantum is important. However while introducing this as allowance, you said it, it's likely that this allowance will be withdrawn from 4th month vice Sales Commission. This fact should be clearly communicated to every one. The name of allowance could be -
Special allow; Daily Allow; Field allow; Allowance in lieu of Commission; Sales allw.; Incentive; Interim allw; Induction allw; Traning allw; Contingency allw; Target allw and so on.
Sometimes, it's unavoidable to face resistance when you withdraw this allow. Pl.take precautionary measures to avert such unrest among them.
To my mind, if you are sure that they are going to get sales commission after 3-4 months from the date of joining, then you can create an adhoc allowance which can be paid to them slightly lesser in amount(average it out on monthly basis) and mention clearly that this adhoc amount would be stopped once they start earning commission on sales.
For a safer side you can add a stipulation in the appointment letter like :-
" We are aware that during the initial 3-4 months or so, you will be unable to earn the sales commission. During this intermediary phase, we will be paying you a monthly lump sum amount of Rs.____ which will be discontinued w.e.f._____ or from the month you start earning Sales Commission."
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