Larger dealers in Indiana and Michigan are more likely to offer sales bonuses based on company sales and commission and offer employee benefits, according to the Midwest Building Suppliers Association’s (MBSA) Salary & Benefit Survey.

The survey found over 40% of dealers with more than $10 million in sales offered bonuses based on company profits and nearly 30% offered bonuses based on company sales. Responding firms with annual sales under $10 million did offer company bonuses, but based payouts on management discretion and undefined merit and performance.

Both groups favored plans that paid sales reps a base salary plus commission. Three-quarters of large dealers reported having a profit-sharing plan, a year-end cash bonus, or a combination of both plans for its sales staff. Half of small firms reported having one of the three bonus types for its sales staff.

Midwest Building Suppliers Association

Dealers generating less than $10 million in annual sales on average spent a larger percentage of its payroll on benefits than dealers generating more than $10 million in sales (21% of payroll vs. 14% of payroll) but were less likely to offer benefits than larger dealers. Larger dealers were nearly three times as likely to offer life insurance and short-term disability insurance than smaller dealers and nearly twice as likely to offer employee and dependent dental insurance. According to the MBSA, smaller dealers are slightly more likely to offer employee health insurance, but less likely to offer dependent health insurance.

Midwest Building Suppliers Association

The MBSA gathered data for its Salary & Benefits Survey between late summer 2018 and April 2019. Participants from Michigan and Indiana answered questions from their personnel files, employee handbooks, and financial statements. Over half of the respondents represented one- or two-location firms, while less than 10% represented firms with eight locations or more. The average responding firm reported having 79 full-time employees.