Issue link: https://viewer.e-digitaledition.com/i/1500046
22 • Footwear Insight ~ May/June 2023 footwearinsight.com Business Insight By Alan Miklofsky F or years, I have strongly believed in paying commissions. Up until the pandemic significantly increased the pace of change relating to the relationship of employer and employee, li ke many sma l l business owners, I was willing to tackle the various issues regarding compensating a sales employee on a commission basis. However, in today's world, it is necessary to reconsider many business decisions made in previous years. is article attempts to recognize the pros and cons of managing a commissioned sales floor. Many articulate individuals answered my online post placed on Shoe Dogs United (a Facebook group focused on the shoe industry which has over 5,000 members) in March, where I sought out reasons why some store owners have opted for a non- commission environment. Amber Mullins, owner of Ms. Bossy Boots, Crystal Lake, Illinois, offered her opinion that commissioned pay systems "create petty squabbling over specific sales as well as disagreements over who does what in the store." Mullins also summarized her view with these words, "e benefits of NOT paying commissions supersedes any pros of attracting & retaining employees." Adam Farber, owner of Mark Adrian Shoes, Gloucester, Massachusetts, expressed his main reasons for never paying on commission: "It conflicts with maintaining the type of culture I want for my store. I want to create a more relaxed, lower- pressure environment for my customers. I also want my staff to work as a team. If someone is not clicking with a customer, another salesperson should get involved and possibly take over with the customer. As an owner-operated single store, I am almost always on the floor with my staff, so I know they are working hard. While I don't pay commission, I do pay a higher wage and spiffs on additional pairs sold beyond the first and on clearance shoes." LaRonda Denkler, former co-owner of Vince Canning Shoes and Tooties Shoes, Delray Beach, Florida, says "We found commissions did not work with our highly seasonal business. Employees would feast in the winter but experience famine in the summer. We did pay bonuses on selling multiple pairs or hash shoes." For more information on Alan, visit his LinkedIn page at: https://www.linkedin.com/in/alanmiklofsky SHOULD YOU PAY YOUR SHOE SALES STAFF COMMISSIONS?