Remuneration and Incentives
Remuneration and incentives can be viewed as both a simple and complex subject. If you are a small business owner, you may think you don’t need a remuneration plan. However, its worthwhile keeping up to date on market rates and what your competitors are paying.
A simple example would be hiring a competent sales person. Factors to consider:
* How much does an experienced and professional sales person cost?
* What benefits will this person expect, to carry out their role – company car/car allowance, mobile phone?
* What are your competitors offering to pay and where do you fall in line with the average pay rates?
* What commission structure can you afford to pay, and is this attractive?
A more complex remuneration and incentive plan could be one structured around your billing model. An example here would be a service based business that bill their customers an hourly rate for services rendered. If you are paying a staff member $50 per hour/$1,900 per week, and they are only billing $500 per week, you have a problem. How do you incentivise this employee to maximise their billable hours?
What policies do you have in place to manage yearly wage reviews? Do your staff expect salary increases every year? How do you manage these expectations and hold onto good staff when you cant afford to pay them more?
I can help with all of the above!