Why You Need To Balance Payroll with Commission Management

by | Apr 27, 2022

What do commission management and payroll have in common? Both are methods that ensure hardworking employees get paid and stay motivated. It’s two pieces of a very important compensation puzzle and both require similar resources, time, and work. However, far too many organizations overlook the unique investment required for commissions.

These days, a vast majority of payroll gets outsourced to payroll companies or automated with payroll software. Unfortunately, neither of those options can cover commission management in a comprehensive way.

Picture of rocks stacked on top of each other in a pyramid formation balanced on a tiny tip at the top of one larger rock representing the balancing act of managing both payroll and commissions.

When you work with Core Commissions, we collaborate with you to set up and implement your commission automation.

Luckily, commission solutions, like Core Commissions, exist to fill the void when your organization is missing the resources. If you need more reasons why you need to adopt commission-specific tools, read on.

Commissions Are Calculated Differently

The process of calculating commissions calls for an entirely different set of data than payroll. It comes from a variety of sources and represents a wide range of performance factors. Throw in a diverse set of rates and other calculations and you have a very different process from payroll.

Payroll software often focuses more on basic payment rather than those intricate calculations. To handle the particular needs of commission calculations, organizations must have tools that respond to them.

Commission Calculations Need to be Audited Thoroughly

Due to the ever-changing nature of commission calculations, administrators must regularly audit the formulas. Without the right application to handle this, the person handling this task needs to do this manually. That can be time-consuming and leave you wide open for human errors or miscalculations that slip through.

When administrators have the right programs, this task gets a lot easier. In the case of Core Commissions, our clients have access to Automated Auditing. This feature gives administrators the ability to see all calculations in a single view. They can recognize potential issues and make changes all with one look.

Image of a man balancing on a tight rope overlooking a vast mountain.

Commission Cycles Don’t Always Match Up with Payroll

Paying out commission happens on a different schedule than regular payroll. Depending on the organization, commissions likely happens more infrequently than payroll. Payroll teams and solutions focus on a regular payroll cycle. It can be difficult to shift and make exceptions for a separate timetable.

A solution that applies specifically to commissions will have more flexibility to work outside of a payroll cycle. It means commission administrators won’t have to set reminders to kick off a new process.

Commissions Require A Certain Kind of Expertise

Since commission payouts come pretty infrequently compared to payroll, all those processes are easily forgotten. Administrators return to the table each cycle trying to remember what they did last time. It turns the whole job into a frustrating activity.

At Core Commissions, we have a unique solution for this: Managed Services. Instead of requiring in-house employees to relearn processes every quarter, our experienced team can support them. We can also take the whole thing out of their hands.

We’d be thrilled to explain more about our application, Automated Auditing, and Managed Services to you. Contact us for more information or set up a free demo with us. Let’s solve your commission challenges!

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