A tenure is a period for which an employee has worked in your organization. You can award commissions for employees who complete a certain tenure, say five years. 

You may also use tenure based commissions as a tool to retain employees and offer this commission as an incentive at regular intervals, say after employees complete 1 year, 2 years, 3 years and so on. 

Zenoti calculates tenure commission as a percentage of the total revenue generated by the employee over a pay period. For example, you may give a tenure commission of 5% to an employee who has completed two years in the organization. If the employee got in a revenue of $400 in a pay period and completed two years, then the employee earns a tenure commission of $20 (5% of 400). 

To define tenure-based commissions:

  1. Go to Employee > Settings
  2. Click the Tenure link. 
  3. Enter the commission percentage and select the number of years (of service) from the drop-down list.
  4. Click Add.
    In the following screenshot, an employee who completes one year will earn 5% commission on total revenue earned over a pay period, an employee who completes two years will earn 10% commission on total revenue earned over a pay period.
    Note: To remove a commission slab, click the Delete (red cross) icon.

Worked Example and Impact on Employee Reports

Consider the following:

  • Commission percentage: 5%
  • Employee tenure: 1 year
  • Revenue generated by the employee during the latest pay period: $3000
  • Tenure commission earned at the end of 1 year: $150 (that is, 5% of 3000)

If this is the scenario, the Employee Payroll Details Report displays the Tenure commission in the Bonus and Penalty Details column. 

Best Practice: To view all the columns of the report, always export these reports - the UI shows fewer columns. 

Read: Employee Commissions - An Overview

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