Setting Up Commission Adjustments and Splits
Define adjustments for specific appointment types such as requests and redos, manage spiffs, and pre-configure commission split ratios that you can quickly apply in the register.
To get here, type payrollsettings into the Convobar, or go to Meevo > Business Settings > Payroll Settings. Then select the Commission Detail tab.
How are commission adjustments applied if I have all of them enabled?
When applying commission adjustments, Meevo first looks to see if the Requested employee commission is configured, and then applies logic from there.
If Requested employee commission is not enabled, or if it is enabled as a percentage (%):
- Redo: If enabled, this is the only commission that gets applied, regardless of what else is enabled. If Redo is not enabled, the order of priority is as follows (only one of the following is applied):
- New Client
- Walk-in
- Requested
If Requested employee commission is enabled as a dollar amount ($):
- Requested adjustments set to dollar amounts are always incorporated into the employee's final overall service commission, regardless of what other adjustments are enabled. Of the other adjustments, the order of priority is as follows (only one of the following is applied):
- Redo
- New Client
- Walk-in
Commission adjustments
- Adjust commission scale based on scheduled work time hours: When enabled, commission scales are adjusted based on what is configured in the sub-setting below. These options are a way to "normalize" commission so that employees working fewer hours than expected have a chance at ascending the commission ladder.
- Commission scales are based on ___ hours per week: Commission scales that are set up in employee profiles are based on the number of hours entered here. Scales adjust in reporting and payroll according to the following formula:
Current Scale in Employee's Profile * (Scheduled Work Time Hours / This x Hours Per Week Setting)
For example, if this option is set to 40 hours per week and an employee only worked half of that (20 hours), the numbers in each scale will be halved. So, a $0 to $500 scale for this employee would become $0 to $250, $500.01 to $1000 would become $250.01 to $500, and so on.
- New Client Commission Adjustment: This option adjusts the commission earned for servicing a new client. See Step 5 for important details on the priority of adjustments and when they are applied.
- New Client commission affects commission when clients are: A client is defined as "new" according to this criteria: New to the Location, or New to the Employee.
- Employee will receive __% of their standard commission for services with new clients: This option can be set from 0% to 200%, allowing you to configure this adjustment as a deduction or an increase.
- Walk-In commission: For a client to be "walk-in," Walk-In must be selected in Appointment Editor. Employees who are booked as a result of a walk-in client receive this percentage (minimum 0%, maximum 100%) of their standard commission. See Step 5 for important details on the priority of adjustments and when they are applied.
- Redo commission: For an appointment to be a "redo," Redo must be selected in Appointment Editor. Employees who "redo" a service for a client will receive this percentage (minimum 0%, maximum 100%) of their standard commission. See Step 5 for important details on the priority of adjustments and when they are applied.
- Requested employee commission: For an employee to be "requested," Requested must be selected in Appointment Editor. Employees who are specifically requested by the client will receive this commission.
- If this is a percentage (minimum 100%, maximum 200%), it is calculated against an employee's standard commission for that service. In terms of reporting, a Requested commission percentage does not appear as a separate line item on the DE040, since this percentage is included in the service commission total.
- If it is a specific dollar amount, that dollar amount is added to the employee's final overall service commission total. In terms of reporting, the Requested specific dollar amount does appear as a separate line item on the DE040, under the Override Commission Calculation subsection.
- Split Spiff: A spiff is earned by an employee when the employee performs a service on a client, and that client then purchases a spiff-eligible package or membership. The employee receives spiff for each spiff-eligible item sold. If spiff is being paid out to several employees for the sale of a package or membership, then the spiff is paid out according to your selection here:
- Split the Spiff Among Each Eligible Employee: Each eligible employee receives an equal portion of the spiff. For example, if there are two employees on the transaction, each would receive 50% of the spiff value.
- Award Full Spiffs to Each Eligible Employee: Each eligible employee receives 100% of the spiff.
- The primary employee who performed the service does not have to be credited with the sale of the item to receive spiff.
- The service must be rung up before or at the same time as the sale of the item. A service that is performed after a spiff-eligible item was sold will not result in a spiff for the employee -- that is, unless another spiff-eligible item is sold afterwards on the same day.
- Spiff is awarded per eligible item sold. So if a client purchases a service and then purchases a membership and package (both spiff-eligible), the employee will receive spiff for the membership and the package.
- Multiple spiffs can be awarded in the same day and in the same transaction. For example, if on the same day a client receives four services from four different employees and then purchases a spiff-eligible package, all four employees will receive the full spiff. If the Split Spiff option in Payroll Settings is enabled, then all four employees will receive the spiff according to that setting.
Split commissions
The split commission you create and save on this screen will be available to use in the register when you apply a split commission in the Smart Receipt.
To get here, type payrollsettings into the Convobar, or go to Meevo > Business Settings > Payroll Settings. Then select the Split Commissions tab.
- Select the Split Commissions tab and select Edit.
- Select Add Split Commission.
- Display Name: Enter a name that will make this item easy to identify in lists or menus in Meevo.
- First Employee and Second Employee: Enter the percentage breakdown for each employee. Commission will be distributed based on these percentages.
- Select Apply.
- When finished, select Save.