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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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Hi Donna – such good news that you’re in the rebuild phase. Andy has given you some great ideas above. I thought I’d offer an alternative perspective. Incentives can be very powerful to get results, but can also have a dark side. Many organisations are rethinking, or entirely removing, performance based pay systems because they can be bureaucratic to administer, can encourage people to ‘do what it takes’ to reach the goals, rather than ‘do what they should’, and generally are seen to create greater dissatisfaction and disharmony when employees don’t get what they hoped or expected.

Here is a particularly good clip to give you some food for thought on the Science of Motivation. https://www.youtube.com/watch?v=kAKYX4Y4GQA

Rather than specifying a set incentive programme, another approach could be that you consciously catch people out doing the right thing for your customers and business, and have a stash of gift cards that you give out for both reward and recognition. There’s also nothing to stop you giving a larger special financial bonus or profit share in the good times, as a surprise – rather than as a calculated expectation.

I wish you all the best going forward. Many of us will be thrilled to see the day spas opening again! Fiona