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Reply To: Hi everyone, I have just spent the weeks of lockdown rebuilding my business (Day spa). I would like to introduce a banding system/wage structure for my staff to strive towards increase in hourly rate by achieving certain criteria and a level of standard. Does anyone have an idea where to start and what things to include besides increase monthly sales by a % or keeping rebooking of new clients at over 85%Thank you

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Morena – aligning and sharing in success is a great way for everyone to share in the success, and you have it inherently on the right track around being prepared to pay in contract for a base remuneration for having the staff there at work, and then subject to certain outcomes happening then you will bump up – this ‘bump up’ should be looked at as a bonus, because the first part is what you are prepared to pay your team members to do their job. A few things to think about:
– important that if you are changing their terms and conditions that you first consult with them, be clear with them, give them time to consider, give input and guidance back, you can’t just unilaterally change the terms
– in communicating with them, you can raise/suggest some of the outcome measures you are looking for, and also ask them for input/guidance on what other measures might help the business success – less is more on these, but also they need to be achievable, not unreachable as that will just lead to struggles with the culture – you want them winning, because if they do, you win as the owner
– consider the ‘mechanism’ – i am not sure the hourly rate is the right one, you pay them x / hour to do their job, and you are prepared to pay them a bonus if they can achieve certain measures – think about if you can ‘lump sum’ this one.
– think about ‘team and individual’ goals, it might be that 80% of the bump is for their personal work, and 20% for the team success – that works in my experience, even 50/50 so everyone gets in and works together.

Good luck and love your mahi to work and share with the team.

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