An excellent way to show staff your appreciation is by setting up a commission structure. This provides staff the opportunity to earn extra beyond their wage through their own hard work. To help you set-up and manage a commission structure, we showcase why this is important and how best to do this.
First and foremost, a good reason for a commission structure is because it incentivises staff. The promise of reward from selling retail or treatments will help motivate staff to sell them. You are essentially putting your employees in control of how much extra they make whilst boosting business.
Set-up different commission rates
Everyone works differently, so make sure you set-up different commission rates which are unique to them. You could set-up either a flat tiered structure, where you give a percentage of the money made, or a tiered system, where staff could earn more commission based on parameters of your choosing. That way, staff could be rewarded more based on their performance or experience.
Set targets for staff
Setting targets under your new commission structure will mean staff have something to strive towards. Make sure these targets are unique to each of your employees, as something easy for an experience member may not be attainable for a new starter, demoralising them. A realistic target is a fair one!
Run commission reports
Once a commission structure has been set-up, it’s important to run regular commission reports. Through doing so, you can measure performance to see who has gained the most commission and who may be falling behind. These reports are a good way of measuring staff performance through your system.
Deal with poor performance
Not all staff will hit the ground running when you set-up a commission structure. For those employees, as well as those who may be having an off week, make sure you encourage them to open up about any issues they may be facing. That way, you can support them where necessary and help them boost their sales.
Both Salon by Premier Software® and Core by Premier Software® have commission structure functionality. Whether you wish to set-up commission rates, different tiers, or run commission reports, Premier Software’s systems will help you boost your business. For more information, book a free webinar or presentation today.