Another contact centre advisor operational cost you need to meet?
A recent decision by the UK employment tribunal (Lock vs British Gas), which had been referred to the European Court of Justice (ECJ), ruled that employees who earn commission as part of their remuneration package must now have that commission included as part of their respective holiday pay calculations. Prior to the ruling, employers were not required to include a commission component in an employee’s holiday pay packet calculation, resulting in reduced income for that employee following a period of annual leave.
This case was taken to the employment tribunal by British Gas employee Mr Lock, a salesman for the company, who received commission for successful sales on top of his basic pay. Mr Lock successfully argued that during his annual leave period he couldn’t successfully generate commission and that his holiday pay should reflect what he would have earned from commission during that time.
This means that holiday pay calculations for those staff who are paid commission as part of their remuneration package must now include a commission component. Further details and a discussion of these implications are covered in Personnel Today.
This decision has operational cost management implications for companies who, as a result, will need to consider their commission schemes and bonus structures alike to strike the right balance. This decision may impact companies who employ sales based staff with commission schemes in place, including contact centres with a sales function. Many contact centre sales operations are already facing growing operational cost challenges and this may well be another financial burden. We empathise with this position and if we can help further improve the effectiveness of your sales operations we would love to speak further.
Paul Mackenzie is Director of Ember Services and has a detailed understanding and interest in the effective use of contact centres for sales generation, working with companies to craft their sales strategies and work within the relevant policies to remain compliant.