How do I best structure my sales commissions/incentives?

How do I best structure my sales commissions/incentives?

There are many components to a popular sales incentives plan but the major component which most of them, if not all, fail to incorporate is 'loyalty'.

For the same grade, a sales incentive plan should be higher for employees who have served the organisation longer. The absolute percentage increase could be low single digit only, but they definitely need to be more. This would differ with industry and market dynamics.

An employee who has served few years with organisation is far more valuable than someone who has just joined, for very obvious reasons.

Organisations show their respect towards a 'loyal' employee in many different ways and sales incentives could be one of those way, and may be the perfect way to close the loop.

There are times when an outsider is recruited in the same grade/band with a higher compensation structure, compared to an existing employee who has put few years under his belt, due to several factors, one of which is the new employee's past pay.

While this could not be helped either by the existing employee or the organisation, the organisation has an opportunity here to show it's respect for the loyalty of the existing employee, by giving her a slight edge in sales incentives structure.

Eg: Within the same grade, if the incentive for fulfilling an annual target of revenue is 20% of gross  annual basic salary for a new employee, it could be 22% for the existing employee. The percentage increase would vary depending on the increasing years of service for an employee.