How Do Radio Stations Decide on Sales Team Bonuses? Seeking Guidance on Fair Policies

Dear Members, I am interning at a radio station and have been asked to determine which policy is beneficial for the increment or bonuses provided to the "Sales" team. The issue is whether there is a particular formula used in this industry or if it is up to the seniors to decide. Additionally, is the percentage applicable to all hierarchical levels, or should the lower levels receive a higher percentage increment? I am very confused, and your help would be greatly beneficial.

Thanks,
Lost Intern

Salary and Commission for Sales Employees

Generally, it has been observed that companies offer a fixed salary to sales employees and also provide a certain percentage of commission if they achieve above the target level, in addition to their salary.

Considerations for Increments

Regarding increments, there are various points to consider for the sales team. Factors such as how much they are achieving their targets and the behavior of the employees are important. Based on these criteria, performance appraisals are conducted, and increments are given as a percentage.

Regards,
Rajiv

Dear Rija, you are discussing a radio station where a significant number of employees may have been appointed. Therefore, it would be beneficial for you to establish a pay scale structure in which the rate of increments is specified. This way, the question of the quantum of increment will be resolved. Those who demonstrate good or outstanding performance will receive higher increments, while those with poor performance will miss out on increment opportunities.

Bonuses and Their Calculation

Secondly, another issue to consider is bonuses, which are calculated based on the 12-month basic salary of the relevant accounting year. Employees who have worked at least one month for a salary/wage below Rs.10,000 per month are entitled to a bonus. The percentage should remain consistent regardless of the employee's position level. Bonuses can range from 8.33% to 20%, depending on the projections from the balance sheet and profit & loss account of the respective accounting year.

Regards,
KIRAN KALE