Rogers and Fido drastically cut commission despite 30% increase in sales
Uh oh! It looks like there is trouble brewing within the rank and file of the Rogers and Fido sales staff, assistant managers, and employees at the director level. A decision by the Rogers finance department to cut sales commission by as much as 50% has seriously irked the sales staff who played an integral role in the approximate 30% increase in sales since the beginning of 2008. Normally one would assume that a company wouldn’t mind fairly compensating their employees with commission for all of their hard work and doing such a damn good job at selling their products and services, but as we have seen so many times in the past, Rogers isn’t a normal company.
Consider the following as an example of what would happen to the average large store employee working on commission-based sales. Under the old system, signing a customer up on a 3-year contract with a monthly plan above $40 would net a $25 commission. With the cut the same employee only stands to make $16.20, a decrease of 35%. If the monthly plan is under $40 a month the new commission system makes for a cut of 34%.
- Single options now only pay $1, a decrease of 50%
- Value packs now only pay $3.80, a decrease of 24%
- Non-term data now only pays $9, a decrease of 10%
- Month-to-month activation now only pays $3, a decrease of 40%
- Commission on accessories has decreased 30%
Added up, the average employee of a large store stands to lose over $500 a month in commission because of these cuts at a time when the amount of sales are so high that many stores are paying 50% more than their budgeted commission because of a drastic increase in the volume of sales due to the iPhone 3G, lower data costs, and new low-cost monthly plans.
The action taken by the Rogers finance department will have a profound implication on the level care that both Fido and Rogers customers receive. No longer will the in-store sales staff be willing to assist customers with their problems after they have been sold their phone and plan because the sales staff have to make more sales to compensate for the cut to their commission. This will mean more and more customers will be sent away and told to call customer service which will in turn place tremendous strain on the resources of the call centers and forcing customers with problems to wait on hold for a longer period of time than necessary.
To make matters worse, there is the potential that a lot of the sales staff will simply tender their resignation, meaning that customers will have the pleasure of dealing with freshly trained sales staff who haven’t the slightest clue about what they’re really doing.
The cut to commissions will impact each and every customer of Rogers and Fido in one way or another. If you’re the type of person who feels this is wrong, you can call Rogers or Fido toll-free within Canada at 1-888-764-3771 and 1-888-945-3436 respectively.
IF THIS LOWERS MY BILL SORRY GUYS I COULD CARE LESS. BUT IF THIS GOES TO THE SHAREHOLDERS THEN ITS BS.
To Dave; I can only assume you are a management level employee of Rogers.
If the customer is observant (as they should be) they would be aware of any attempted fraud by retail employees.
Do you really think your assessment is the reason Rogers made these cuts? C’mon….
This makes it even better.
http://www.appleinsider.com/articles/08/10/28/rogers_says_quarter_million_iphones_sold_in_canada.html
This decision was “reversed” a long time ago…they presented the cut, but upon the backlash about it, rescinded. Everything is business as usual with the Red Rogers. Hey, you may not like ROGERS, but at least we keep our employment in Canada unlike that other “Blue” Canadian Telecom Company that outsources to India.
@ Rogers Guy
Blue? I am assuming you mean Bell?
Bell doesnt outsource, the only canadian telecom company that does is ROGERS.
I feel sorry for Canadians. Reps get a pay cut, CS will suffer, and you guys sign 3 year contracts? That’s unheard of in the U.S. or Europe.
how can we win when 1 makes 10 million and 20 thousand starve?
-NOFX
welcome to corporate America, were the executives make so much it is SICK. my father is a CEO and he has purposely NOT taken pay raises once he hit a certain level and said to distribute the pay raise over his staff, and their pay raises over their staffs, and so on and so forth, to a higher paid and much happier front line …companies are made and broken on front line reps. his employees LOVE him, they have great benefits and a better life…why can’t greedy jerks at the top learn these things from a successful guy?
corporate america sucks….
actually.. bell is 8.95 now..
Anyone notice that Rogers doubled the dividend to their shareholders and paid out a nice chunk of cash today? Is this what they call redistribution of wealth?
Listen, the grass is always greener on the Blue side. You only get burned when your on the Red side. I have used all 3 providers and I have had cellular service for over 12 years and the best network is definitely Blue…the largest, most reliable and I can honestly say I never, ever get a dropped call with the Blue. I love em’,I’m willing to pay 8.95 for a great network.
I await an explanation from individual from higher up the food chain
If we are getting raped, let us not resist, or the rapist is gonna stab us.
lots of rogers/fido reps are just kids around 20, how do we know how to overthrow a big company list ROGERS ?
All mighty Lord please enlighten us…
I work there and am in the processing of being hired else where. It’s gonna suck for the store since I’m fully trained in all systems. I was one of the top sales rep in the country last year.