I thought it would be helpful to share some information about the main commission system types that exist in the Japan recruitment market.
First up is:
Discretionary bonus Scheme :
Your bonus is usually paid either quarterly or three times a year is decided by several different factors which usually include.
- Your individual financial results vs your target
- Your results vs some non-financial indicator target which could be for example customer service scores
- Your team’s results vs target
- Your division results versus vs target
- The company results vs target
Pro’s
- Engenders a team and company-based unified approach to hitting targets
- Can create better collaboration between individuals and teams
- Sometimes creates a good office culture if managed and executed well
- If everything is going well there can be some big payouts
- Good career progression and retention of management layers
Cons
- A recruiter on their individual financial results can but be paid very little or nothing if other results (Team, division & company) are not going well and have missed targets
- The bonuses are decided and allocated by Managing Directors, Directors and Managers and so if your face doesn’t fit then there is a chance your bonus might not be very good, even though this should not happen it does sometimes
- No visibility on what the real annual corporate assigned budget is, there can be two to three different levels of budget added on by each layer of management before it gets to you and your team
- Difficult to understand the calculation system
- Not clear how and why specific allocations are made at a senior executive and management level.
- Its discretionary so there is an opaqueness there that cannot be escaped and can be frustrating for some.
