Team Incentives: How To Keep Employees Engaged, Optimistic, from Shop Owner.
Over the last 15 years, since we started helping shop owners in 1999, I’m pretty sure I’ve seen every pay plan known to man. I’m also pretty sure that I’ve heard every possible variation of the same question: “How can I pay my team in a way that motivates them without eating all of my profits?”
If that sounds familiar, you can rest assured that you’re not alone. Whether you developed a pay plan yourself or are using one developed by a so-called guru, there’s a reason why most pay plans fail: they don’t motivate the employees, or incentivize them to do what the owner wanted them to do.
So what makes a good pay plan? I can’t give you specifics in this article — pay plans should be based on your specific shop and your unique employees. But I can cover what makes an incentive-based pay plan work, and I can absolutely teach why they’re critical for growing your shop.
(A brief note before we dig in: the other thing that is unique to your situation is the law where you live. Not all states allow truly incentive-based pay plans — I’m looking at you, California — so please consult with a labor attorney before changing the way your shop pays.)