Are you planning to pay yourself, your employees, or contractors this year? If so, there are some things you need to think about. How do you want to reward people for their work? How do you make sure that everyone is productive? And how much can you afford to pay yourself and others? This post will give you some tips on how to plan for people, performance, and pay. Enjoy!
Break down the planning process into simple steps //
1. Define your company's values and long-term goals
2. Assess the skills and experience of your current team and identify any gaps
3. Set out the hierarchy, roles, and responsibilities for each position in your company
4. Draft a pay scale for each role that is fair and competitive [horizontal growth]
5. Create a career path for training and development to help employees grow their skills [vertical growth]
6. Establish a system for tracking employee performance and providing feedback
Get creative with the bonus //
Bonuses are a great way to incentivize employees and secure top talent. But bonuses aren't just for the bigwigs - even small businesses can use bonuses to improve employee morale and retention.
The key is to bonus the right things.
For sales teams, bonuses could be based on gross sales, unit sales, or enrollments.
For customer service teams, bonuses could be based on renewals or referrals.
And for production teams, bonuses could be based on process efficiencies, units sold, COGs efficiencies, or labour efficiencies. Here’s another thought… you can switch the incentive up monthly, just don’t forget to measure impact and ROI!
How you bonus your employees is up to you -- but get creative. Bonuses could be in the form of money, gift cards, trips, dinners, stocks, benefits, pension plans, or investments. But whatever you do, get your team involved. Remind them teamwork equals dream work. It’s when the “dreams” are achieved, that the bonuses are released.
It’s not about the bells and whistles, or even pizza parties (although those are nice too). The key to a successful incentive plan is understanding what makes your team tick. What motivates them? Once you know that, it becomes much easier to design a plan that will have them eagerly reaching for their goals.
So tell us – what creative ways have you incentivized your team in the past?
For our Finanically Fierce Founders //
As you're working through the Financially Fierce Formula consider the following points as your budgeting for your Team + Personnel Costs [Drill 1.1] :
Budget for all necessary team members
Budget for the high-end of the pay scale for all team members, including you!
Budget for required training and professional development costs
Ball-park monthly benefits and bonuses