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CaptivateIQ Survey Reveals Impact of Commission-Based Pay on Employee Motivation

CaptivateIQ Survey Reveals Impact of Commission-Based Pay on Employee Motivation
Majority of U.S. employees say incentive-based pay motivates them at work; lack of trust can have adverse effect

CaptivateIQ, a leading incentive compensation management solution, has released findings from its Compensation & Motivation Pulse Survey. The survey explores the influence of commission-based pay on employee motivation, performance, and satisfaction among go-to-market professionals in the U.S.

  1. Survey Overview
    • CaptivateIQ’s survey examines the impact of commission-based pay on employee motivation and satisfaction.
    • 1,000 commissionable U.S. workers across GTM functions participated in the research.
  2. Positive Impact of Commissions and Bonuses
    • 57% of respondents are motivated to perform better due to commissions or bonuses.
    • 52% are driven to achieve their goals by incentive compensation.
    • 44% experience improved job satisfaction, and 43% feel more engaged at work.
  3. Factors Boosting Motivation
    • 59% value accurate commission calculations for increased motivation.
    • 53% prioritize timely commission payouts.
    • Nearly half seek visibility into payout calculations and potential earnings.
  4. Preferred Pay Structure
    • 61% prefer a combination of commissions and salary, emphasizing the role of variable compensation in revenue performance.
  5. Insights from Mark Schopmeyer, Co-founder and Co-CEO of CaptivateIQ
    • Incentive compensation is a powerful lever for job satisfaction and performance.
    • Lack of trust undermines the effectiveness of incentive programs.
    • Organizations should prioritize enablement, clear communication, and transparency.
  6. Challenges and Disconnects
    • Less than half (47%) are confident in the accuracy of their commission payouts.
    • Over half (55%) question their payout calculations regularly.
    • 85% manually recalculate commissions, diverting time from revenue-generating activities.
  7. Impact of Mistrust on Motivation
    • 45% are negatively affected by delayed commission payouts.
    • 41% are demotivated by a lack of visibility into payout calculations.
  8. Employers’ Efforts and Issues
    • 44% have experienced late commission or bonus payments.
    • 34% have been underpaid or unclear about their commission payouts.
    • Nearly a quarter have missed expected commission or bonus payments.

CaptivateIQ’s Compensation & Motivation Pulse Survey underscores the significant role of commission-based pay in driving employee motivation and satisfaction. While commissions and bonuses inspire better performance and goal achievement, challenges around trust, accuracy, and transparency persist. Organizations must prioritize clear communication, enablement, and transparency to maximize the effectiveness of incentive compensation programs and foster trust among employees.