IGCSE, A Level Business Student Forum

Q13 Analyse the potential impact of commission structures by a real estate business on employee job satisfaction. [6]

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Possible Structure
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[AN]
[AN+]

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[KN] Motivation and Performance
[AN] Pay and bonus plans that are well-designed can be powerful sources of motivation for staff members.
[AN+] Employees are likely to feel driven to excel in their positions and meet particular objectives or goals when they are compensated for their work with fair salaries and based on performance bonuses.

[KN] Productivity
[AN] Productivity is higher among employees who are happy with their pay.
[AN+] They are more concentrated on their work and less preoccupied with money worries, which can result in better performance all around.

[KN] Financial Motivation
[AN] Commission-based structures can provide financial incentives for real estate agents to perform well.
[AN+] When agents are rewarded for their successful deals, it can motivate them to work harder and aim for better results.

[KN] Flexibility
[AN] Commission-based real estate agents often have more flexibility in managing their work.
[AN+] This can lead to higher job satisfaction, as they have more control over their work schedule and routine.

[KN] Financial Incentive
[AN] Commission structures offer the potential for higher earnings based on sales performance. When real estate agents are well-rewarded for their efforts, it can increase their job satisfaction.
[AN+] The opportunity to earn commissions can motivate agents to work harder, close more deals, and provide excellent service to clients.

[KN] Productivity
[AN] When employees receive higher salaries or wages their productivity also increases
[AN+] they are more concerned about their working conditions hence their performances are at its peak

[kn] long term career planning
[AN] a well balanced commision structure that include incentive for long term client relationships can encourage agents to focus on building a sustainable career in real estate
[AN+]if the structure is short trm focused lead to a revolving door of agents seeking quick wins

[KN]training and support
[AN]if the commission structure is designed to reward continous learning and skill development it can encourage agents to invest in their professional growth
[AN+]but if there is lack o resources and enough support for training lead to dis satsfaction

[KN] it makes a great competitive environment
[AN] this however can lead to stress and reduced collaboration
[AN+] this reduces the productivity of workers and negatively affecting their job satisfaction

[KN] it provides them with performance based recognitions
[AN] this would motivate them to work harder and achieve their sales target
[AN+] thsi can increase their job satisfaction as they would receive acknowledgement for their hard work

[kn] long term career planning
[an] a well-balanced commission structure that includes incentive for long term client relationships can encourage agents to focus on building a sustainable career in real estate
[an+] if the structure is short term focused lead to a revolving door of agents seeking quick wins
[kn] it provides them with performance based recognitions
[an] this would motivate them to work harder and achieve their sales target
[an+] this can increase their job satisfaction as they would receive acknowledgement for their hard work.

(kn) An efficient employee can earn more with more deals done
(an) reducing absenteeism
(an+) and hence increase productivity
(kn)in case of low demand in the market the employee may get demotivate
(an) making them feel their efforts went to vain
(an+)cause them to leave the organisation

[KN] Higher productivity.
[AN] High commissions structures will further enhance ones ability to work hard, which increases total efficiency.
[AN+] Thus this leads to reduction in absenteeism hence enhancing productivity.

[KN]Performance based recognitions.
[AN] Higher motivation to work.
[AN+] Thus increases the quality of sales hence increasing market share of real estate businesses.