Promotional products companies are granting increased job flexibility, but it isn’t an isolated phenomenon. It’s a conscious effort to reshape the sales profession to make it more attractive to younger generations. Another way companies are doing this? Compensation models.

Salary-based models have been on the rise; according to ASI research, more than half of industry sales reps (52%) earn a salary under various compensation plans, replacing commission-based plans as the most prevalent form of pay. “People who want straight commission are fewer in number,” says Boundless (asi/143717) Executive Vice President Pat Barry.

There are many reasons, from the fear of a lack of a steady paycheck to increased job mobility, where reps aren’t willing to stay as long to build a book of business. “If the industry wants to attract a younger sales force, it makes sense to offer a salary model,” says Fred E. Snyder, regional VP sales, eastern region for Geiger (asi/202900). “It’s very hard to offer kids out of college straight commission – many of them have big expenses such as student loans and healthcare costs.”

A salary model moves distributors to hire workers as full-time employees and offer benefits such as health insurance. Reps that operate as independent contractors may lack those extras, but often have the potential for richer financial rewards. “This industry has employed both employee and independent salespeople since the beginning,” says Gregg Emmer, vice president and chief marketing officer for Kaeser & Blair (asi/238600). “The person attracted to an employee arrangement will not be the same as one looking to have ownership and equity in their own business.” Emmer notes that when K&B has acquired distributors with employee salespeople and introduced them to the distributor’s independent ownership model, “they embraced it and found it to be much more economically rewarding. But initially they wanted the perceived safety of an employment situation.”

Distributors are increasingly prizing compensation flexibility. At Lasting Impressions (asi/249926), some reps earn straight commission while others are paid a combination of salary plus commission. “Sometimes we start with straight salary and move toward commission, or a lower salary with some commission,” says CEO Angela Chryplewicz.

“We aren’t tied to one compensation model,” says Jim Stutz, executive VP at HALO Branded Solutions (asi/356000). “Account executives require flexibility to perform, and our compensation options provide that.”

He adds: “There are many paths to success. We haven’t seen any trend one way or the other, but realize we have to embrace all models to continue to draw the best talent in the industry.”