Salaries being 25% of income?
I am curious regarding the comment regarding the salary cap for reps being 25% of salary...I did not think any stipulations were still legal to recieve commissions?
I would like a better understanding of the guidelines or definition of "commissions." Is this the same as "Boneses?"
I am not sure of the Agencies definition of "Comission."
I agree. The main focus of a school should be for the betterment of the students. If admissions reps are paid for how many enrollees they bring to the school, then they may practice some unethical strategies and comprimise the reputation of the school and its students
There is not a problem that commission has been removed. There are problems that still remain when companies are setting up goals for employees, and when they are not met, you can lose your job. People will still do things unethical because they still know that they have a number to hit. Commission is now equal to employment.
With that being said, it is also important to not hold an employee's job over their head concerning the amount of people they enroll. Pay incentives were created to increase the amount of students who enroll and sit in class. This also encourages employee's to try to meet quota's in an attempt to preserve their job. When quota's are introduced and stressed it also encourages unethical behavior because everyone needs to work in order to live.
An employee who is ethical and performing what is asked of them but is not in turn meeting their quota should not be in consideration for removal. I don't know if there are policies in place to protect admission representatives jobs but I believe it is related to the whole commission topic.
I understand that schools that do not participate in federal student loan programs may elect to work with a commission structure.
I believe I still have questions regarding the 25% of income. I did not realize commission was even an option? Is it?
Andreos has hit the nail on the head here. Companies need to have a mechanism to filter the worst employees, and here may be one. Performance benchmarks are a way to achieve this goal.
Commission, or compensation based on performance, should not be be instantly linked to encouraging unethical practices. What if the commissions were based on customer sercice goals, or student completion. Commissions are an excellent way for a company to reward, and retain, its top employees. It's essential for the success of any organization in any industry, to reward and retain it's best and most productive employees as well as look to replace its worst and least productive. Would you have an issue with that same level of compensation being paid throgh a higher salary?
Federal regulations that govern schools who participate in federal student loan programs prohibit the paying of commissions. The paying of commissions as part of an employee's compensation is not prohibited by state regulations so schools that do not participate in federal student loan programs may still pay commissions subject to certain restrictions such as the 25% salary rule.
I agree that any kind of "extra pay" is not wise
I feel paying commission to Admission Representatives chanlleges ethical principle. The entire goal of the admission service should be to provide quality honest service to the student. Incentives encourage unethical practices.
