Motivating Staff

[Jones]

My staff each writes a dollar goal for themselves when they come into work. They work to that goal everyday. They control their goals and I watch the numbers. Better sales people make or break a salon. After they understood what I expected they took that info and planned their work goal. Most of them like to impress me...which means they set high goals and reach them.

[KoolTanz]

I am wanting to change my commission for my employees. Here is what they currently get:
10% on full size lotion and moisturizers, 3% on all other products. 3% on all tanning packages. And based on their sales for the week they earn free tans.

Here is what I would like to change it to:
10% on ALL products as long as their LPPA is ____ (I'm still working on this number). NO commission on tanning packages and no earning free tans based on their sales.

My reasoning behind the changes are this: We are trying to cut costs. Why should I pay my employees commissions on tanning packages? The customer is going to buy a package anyway and my employees don't always try to sell the higher priced beds.

My employees have all the free tans they can possibly use in the next year. And I will tell them I will keep them with free tans as long as they are selling good.

Does this sound like a good idea?

Thanks, Marsha

[sunsally]

If your staff "don't always try to sell the higher priced beds" then perhaps this is what you should commission.


Commission what you want people to sell. If you want them to mostly sell lotion - commission lotion. If you want them to sell memberships/EFT's - commission those. Ditto larger packages, better equipment, etc.

If you don't want to pay them for just "taking orders" and selling those packages that were going to be bought anyway -- set minimums. Go back historically and see what the "normal" PPA (per person average) or LPPA (lotion) or SPPA (tanning) or whatever has been. Look at the range and the average. Set a goal that says "you will earn X commission if you sell at or above Y level". Make sure they can track it and give them intermediate feedback about if they are making the goals.


By the way - if you WERE paying higher commissions, and now cut them to "cut costs" - you can be assured this will be very demoralizing and DEmotivating to your employees and you will probably see them either a) quit or b) "get" that money back from you - somehow - either in giving away free tans, pocketing sales, etc

[KoolTanz]

Thank you SunSally for the great advice. I like the idea of commissioning what I want them to sell like the higher priced beds.

How can I change the commissions without it being demoralizing and demotivating to my staff?

[JustTans23]

If you do a few more searches on commision, you will find a bunch of different structures people use for commission. There was just a recent one that should still be in the first 1-3 pages of the forum it was posted in. I'm too lazy to type out mine all over again

[KoolTanz]

I have done numerous searches and printed out lots of ideas. That's where I got the idea on changing commissions, but I don't want to demotivate my staff...they are already on slow mode these days.

JustTans23-I used a lot of your ideas...thanks.

I just wanted to know...How can I change the commissions without it being demoralizing and demotivating to my staff?