Compensation Tips for Management Personnel
TIP: Remember that managers are exempt employees for tax purposes. As with support staff, the brokerage company is responsible for income tax withholding, FICA, and unemployment taxes.
- Don't pay your managers so poorly that they have to sell. A manager's role is motivating and mentoring the sales staff, putting them in competition with each other is a lose-lose situation.
- Do pay managers a bonus or percentage of commission to provide incentives for increasing productivity.
- Do link incentives to more than just sales volumes; set bonuses based on the overall profitability of the brokerage so that managers will not neglect the important job of controlling expenses.
- Do be sure that your salary and benefits—health, pension, etc.—are on parity with your competitors.
- Don't pay all the managers equally, pay them based on the difficulty of their managerial role. A manager charged with opening a new office requires a different compensation structure from one operating an established, stable one.
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