Commission is a performance-based incentive paid to employees, contractors, or sales professionals based on their sales, productivity, or specific targets achieved. In industries like manufacturing, retail, logistics, and facility management, commission structures help motivate employees, drive sales, and improve workforce efficiency. Organizations design custom commission plans to align with business goals, revenue targets, and workforce engagement strategies.

For businesses managing contract workers, gig employees, and blue-collar workforce, commission-based pay models help in rewarding productivity, encouraging high performance, and maintaining workforce motivation. Companies leverage HRMS platforms, payroll management tools, and commission tracking software to automate calculations, ensure accurate payouts, and maintain transparency. A well-structured commission system enhances employee satisfaction, retention, and business profitability.