Commission

How does WDP use Commission? Commission jobs pay you on the amount of sales you create. WDP pay part commission and part wage to two of their sales staff. The commission is paid on the amount of sales made for WDP services/products. The more the sales assistants sell, the more money they will get as "commission“. Therefore there is no end to how much they can earn in a commission job.

Advantages and disadvantages of WDP using commission as a method of payment It’s a form of motivation for their employees to really try and sell WDP’s services/products. Is a strong indicator of employee productivity. Can also act as a de-motivator of no sales are made. Sales people may cut corners to make sales (e.g. not explain WDPs products or services in enough detail to potential customers).

Benefits and drawbacks of WDP using probationary periods as part of the recruitment process

What is a probationary period? A trial period for new employees, prior to their employment becoming permanent. Up to a maximum of 90 days.

Advantages and disadvantages of WDP using probationary periods Evaluation – WDP can evaluate the employee performance before making them permanent. Less risk. Termination – WDP can terminate the employee without repercussion. Resignation - On the flip side, a disadvantage of probation period is that an employee can resign at will, leaving the WDP with an unexpected vacancy.

How the government can affect the activities of WDP

Change exchange rates As WDP are an internet company they have a potentially national (if not global) market. If WDP sell their products/services abroad they will need to consider the affect that a change in exchange rates will have on their business: A fall in value of the £ – will mean that WDP products/services will seem more attractive to overseas customers as they will be cheaper. More sales. A rise in value of the £ - will have the opposite effect on WDP.

Change in interest rates Cost of borrowing: if WDP decided to take out a loan the interest charged on the sum borrowed will affect their costs. A rise in rates will mean that WDP costs will rise as they have to pay back more interest on their loan and visa versa. Consumer spending: A rise in rates will cause consumers to cut back spending on ‘non-essential’ items such WDP products/services and visa versa.

Employment legislation WDP’s recruitment process will be affected by employment legislations such as the: Race relations Act Sex discriminations Act Disability Acts Equal opportunities Act