167k views
1 vote
. Why does working for a commission offer less financial

security than working for a
salary?

User Scusyxx
by
6.9k points

1 Answer

3 votes
Working on a commission basis means that an employee's income is directly tied to their sales performance. If the employee does not generate sales, they will not earn money. This means that there is no guaranteed income, and a commission-based employee's earnings can fluctuate widely from one month to the next.

On the other hand, working for a salary provides a guaranteed income, regardless of the employee's performance. Even if the employee does not meet their goals or the company does not generate profits, they will still receive their regular paycheck.

In general, a salary provides more financial security than working on a commission basis, as it guarantees a certain level of income. However, a commission-based job can provide more income potential for those who are good at sales and can generate significant business for the company.
User Ayoub Benayache
by
7.1k points