7 Ways to Incentivize Your Staff

“Do you think giving staff a percentage of profit is a good incentive to improve work?”

Properly incentivizing staff can be a powerful motivator to improve performance, however care must be taken to devise incentives that will elicit the specific performance outcome you desire, while fitting within the margins of your business.

A percentage of profit may very well be a good incentive, for the right individual with the right responsibilities. However, an across the board percentage of profit for all staff is likely a bad idea.

Profit is bottom line, and in this scenario you are essentially tying your staff to all revenue streams less business expenses. This could make sense in the case of an operations manager or other individual who is intimately involved with both managing expenses and overall growth and success of your business. But, a regular staff member whose singular responsibility is coaching great classes is likely not the best candidate to incentivize with a percentage of profit.

Quick note on manager pay:

Many micro gyms and fitness studios don’t have the means to pay managerial salaries. Another way to compensate these key staff members is to directly tie them to the revenue category that governs the specific work they are doing. In this way they can see how their actions directly affect the bottom line of the company as well as their own bottom line.

Remember, it’s important that you talk with your employees and explain any new programs. To get them onboard you’ll need to clarify how the program is mutually beneficial.

Click here to learn the “7 Ways to Incentivize Staff Members.”