Bonus

[Danny King]

We are looking at taking someone on I feel we should offer some sort of bonus, To incourage them.

 

Does anyone use this system and what is the best way to work out a bonus, Should it be on turnover or profit or how much work they do?

[Guest mark]

i work on 10.00 for every 100 over 2400 weekly turnover

[ironplanet uk900]

i work on 10.00 for every 100 over 2400 weekly turnover

 

It all depends on your profit margins, It really is a personal thing that you have to work out for yourself. for example if say £400 out of your £2400.00 was taken on a low markup product such as Shopping bags/polishes you wouldn't want to be giving 10% of that as bonus.

How many staff have you got also mark? do you share the £10 between them or is it £10 each?

[Hugh-Candoit (ENG)]

This is probably one of the most difficult areas,

 

If you base the bonus on turnover then the person putting in most effort does not get the most bonus unless using a piecework system.

 

How do you work out who has contributed for a larger share of the pot.

 

Do you pay less experienced personel less bonus.

 

If I had to work a system out it would be bases upon a points system like this,(points for each section).

1. Number of years worked.

2. Skill level on each service including sales.

3. Speed. (have not thought how you would measure this though).

4. Days worked.(this would account for sickness).

5. Total number of points for all staff divided into the total bonus amount.

6. Each person gets that amount x the number of points.

7. Extra cash for selling high priced jobs like through soles etc. (you determine which products you want to push that provide the best profit).

 

There has to be an element where the staff are rewarded for more effort, not just a share ofwhat everyone else earns. Something like M&S vouchers for the most extra sales in a month (although some might not bother doing the actual work, prefering to sell)