I thought it would be helpful to share some information about the main commission system types that exist in the Japan recruitment market.Second System is:

    Personnel Draw Based Commission System 

    A personal draw commission system can be usually defined as:
    • You are paid a % of the revenue you generate in a specified period of time.
    • This % could be a fixed percentage
    • The % could be an increasing % applied to different revenue thresholds when they are hit and or surpassed
    • The higher % may be calculated just for the revenue within the different bands or is sometimes paid when hit as the higher % retroactively on all the revenue generated to date in a quarter
    • Usually paid quarterly or monthly
    • The system will use your monthly base salary amount as the mechanism(Draw) to calculate the commission owed to you
    • This is usually applied one of two ways followed:
      • % of quarterly revenue generated minus your quarterly cost(draw) = your total gross commission payout
      • or
      • Quarterly revenue generated made minus your quarterly cost (draw) then % applied against the remaining revenue amount to calculate your gross commission payout
    • Simple to understand and easy to calculate
    • No politics or personality involved; you are paid what you earn
    • %’s can be very good and lucrative depending on the company
    • Can drive high individual performance
    • Establishes a high-performance culture
    • Can have increasing %’s which kick in at higher levels of revenue
    • %’s can be too low to clear your draw(cost)
    • Can create a more individualistic and less collaborative internal culture
    • Less sharing of knowledge and information within teams
    • Rolling draws(costs) that go on for too long or have no limit, so you are always playing catch up if you have a bad quarter
    • Overly long wait for actual payouts
    • More difficult to develop long term people management layers