Hi all,
i just wanted to share with you what happened to me when i changed the commission structure at the salon, I am also curious about what you think and anyone who has a better way of doing this - that works!
So, employed a new staff member at the beginning of the year with a starter salary of £10 per hour (doing 42.5hrs per week) Im based in SW London
Our commission structure was the following:
I felt that this commission structure wasnt working as i imagined so i came up with a new one:
But this didnt happen - the bonuses in the past 2 moths were almost the same: £180 and £220.
Sadly, i do not see them using this system to the fullest, while they are getting paid after each service as a form of commission.
you would think that if there is a facial £75 - which will mean £12.25 for the hour pay - they will want to do it, but no - this is not the case.
So all in all, this commission structure DOES NOT WORK!
Currently im not in a great position where if i change this, to a target based - which in my opinion would work better - will not be taken easily.
The reason why i went with the no target commission was because i was unable to offer more than £10ph for the therapists. ATM the hourly rate with commission looks like: £10.70, £11.00 £11.35
So in fact these numbers show that the pay is higher than £10
What do you all think? does commission work at all? or as a therapist would you be happier just with your higher hourly rate ?
Interesting topic, especially when you take into count that not all is motivated by money.
Thanks x
i just wanted to share with you what happened to me when i changed the commission structure at the salon, I am also curious about what you think and anyone who has a better way of doing this - that works!
So, employed a new staff member at the beginning of the year with a starter salary of £10 per hour (doing 42.5hrs per week) Im based in SW London
Our commission structure was the following:
- 17% retail commission £200 target
- 10% service comm - % target after worked hours
- 5% of the value of the total packages sold (course of treatments)
- £100 after each "high value " Package sold.
I felt that this commission structure wasnt working as i imagined so i came up with a new one:
- 3% retail commission NO target
- 3% service comm -NO target
- 3% of the value of the total packages sold (course of treatments)
- 5% after each "high value " Package sold.
But this didnt happen - the bonuses in the past 2 moths were almost the same: £180 and £220.
Sadly, i do not see them using this system to the fullest, while they are getting paid after each service as a form of commission.
you would think that if there is a facial £75 - which will mean £12.25 for the hour pay - they will want to do it, but no - this is not the case.
So all in all, this commission structure DOES NOT WORK!
Currently im not in a great position where if i change this, to a target based - which in my opinion would work better - will not be taken easily.
The reason why i went with the no target commission was because i was unable to offer more than £10ph for the therapists. ATM the hourly rate with commission looks like: £10.70, £11.00 £11.35
So in fact these numbers show that the pay is higher than £10
What do you all think? does commission work at all? or as a therapist would you be happier just with your higher hourly rate ?
Interesting topic, especially when you take into count that not all is motivated by money.
Thanks x