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MIKAL Salon & Spa Software

Ultimate Salon Software since 1982 

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Payroll and Goal Setting Ideas

Posted on June 22, 2020 at 10:05 AM

EMPLOYEE GOAL SETTING AND COMPENSATION

Redefine the systems used to reward and motivate service and management staff!

MIKAL Software allows us to design a goal setting and compensation system that will reward top performers, promote productivity, and help employees set and achieve their goals. You can tie your goal setting system into the interview process to strengthen the goal setting system and get the commitment to succeed from new hires right from the start!

Hiring the new employees is only the beginning of your management job! You must have an aggressive training program and marketing system in place to get new employees busy fast!

Your goal setting system and compensation system needs to be promoted in the interview process, presented in the training process, and reviewed during the probation and employment period. Use your goal setting system in conjunction with your compensation program to hire, monitor, and motivate your employees.

SETTING GOALS:

● Service Providers - number of services by category

Dollars by category, Number of customers,

Number of repeat request customers,

Average service and retail ticket per customer

Dollars per hour and per booked hour

● Administrative staff - bonus based on increases

Sales increases by category or department

Retail increases and customer increase

Number or repeat and rebooked customer increase

● Reception and Preception staff - bonus based on up selling

Up-$ell spif or commission plan

Prebook/Rebooking customer bonus

Retail sales increase bonus

Retail sales commission (new retail sales)

TYING GOALS TO COMPENSATION

● Your pay structure - give them lots of ways to make money

● Your goals - are they their goals? What do you really want?

REPORTS AND COMMUNICATIONS

● Payroll analysis - educate the staff

● Evaluation reports - do them weekly and review

● Employee Analysis Report

● Retention reporting - track it and reward it

● Employee Graphs

● Employee Time Efficiency

● Management Check on screen information 

EMPLOYEE COMPENSATION AND GOAL SETTING

Employees are our greatest cost and our most valuable resource.  We must work on increasing productivity while also increasing their quality of working life. The KEYS to a successful compensation and goal setting system are:

● Regular weekly goal setting and evaluations

● Flexible compensation systems

● Tracking of hourly efficiency and retention

ON GOAL SETTING:

Goals must be achievable. SMS tracks sales history in 50 categories over 2+ year periods. It is easy to look at present sales figures and set goals based on those figures (assuming the employee is at least at minimum sales levels). The goal setting system also tracks customer volume, average ticket,

and new and repeat request customer numbers. Set the goals weekly and generate the weekly Evaluation report for every employee.

Goals must be set with the employee. Team goal setting is the ultimate.  In SMS you can sit down and set the number and dollar goals with each staff member.  Goals can be divided into detailed categories for service and retail.

It is easy to tell some one your goal is $ 1000 a week, but this is hard to understand. It is better to break it down into bite size goals like: your goal is to service 8 customers a day with an average ticket of $ 25 (this equals $ 1000 but is MUCH easier to understand), or to work with the service provider to achieve the $1000 goal by saying Acan you do five haircuts a day, 2 color services, one perm and one conditioner? This is about 6 hours of work a day and would be about $280 in sales a day or $ 1100 a week on a 4-day week. SMS will print a report each week that shows the numbers and dollars done in each area, the average ticket vs. goal average ticket, and the percentage achieved.

Most of our salons run the evaluation report and include it with the employee’s paycheck.

Why do all of the Fortune 500 companies do regular goal setting???

The main reason is because employees who have goals and get regular feedback is that their average productivity increases TEN percent. How would you like to increase sales just by having some goal setting meetings and print a page per week for the employees????

LET’S LOOK over the sample Evaluation report. (Employee Report #2)

YOUR COMPENSATION SYSTEMS:

There are TWO challenges we have to face in any type of compensation system we implement in our salons, spas, and medispas. What do you think those are???

• Our Compensation must be flexible and competitive

• Our Compensation system must be tied to performance

Every company is challenged today with a shrinking employee labor pool, competition for employees from all forms of businesses, and a more demanding employee (because it is an employees market).

® Does a 20 year old have the same needs as a 30 or 40 year old employee?

® Does every employee want the same things out of their job?

® Is every employee motivated by the same incentives?

Look at the ways you can set up each employee’s information!

®SMS allows you to have a base salary or hourly guarantee (you can raise this as sales increase for specific employees) and the hourly staff will receive a report on their sales performance and productivity every night when they clock out!

®SMS allows you to have commissions by item number to launch a new line, to emphasize a slow moving service, to liquidate items that are not moving, or to spif certain items with certain operators.

®SMS allows you to automatically do product/service charge deductions by dollar amount or percentage. PLUS you can set an exemption level. When an operator goes over that sales level during the pay period they are exempted from the charge for the period!

®Assistant deductions can be automatic by service, or as a flat charge.

®Commissions can be ladder, straight or retail % of service with 10 service and 5 retail levels. You can set the ladder levels to small amounts to encourage growth.

®Retention commissions let you pay commissions as a bonus for retained customers or as a way to attract service providers who have a developed clientele to your salon/spa (pay 60% on repeat requests, 50% on shop customers, and 40% on

new non requests) This gives them credit for the customers they bring to the salon!

®Bonus commissions can be used to move an employee forward almost like a bet: “I’ve been tracking your sales and you never do over $ 1000, I’ll give you $ 50 the first time you go over $ 1000 in one week” - the system will track it!

®Override Commissions: Use this to pay department managers an override on sales (service or retail) over a certain level. Compensate the salon manager based on meeting service and retail goals. MIKAL Software organizes and figures it all out for you!

Come to Camp MIKAL and take classes that deal directly with these issues - Sept 19-21 Cincinnati Ohio 

Sign up for camp on THIS WEB SITE go to Pricing - Training - Camp Mikal and sign up - staff up - grow the business!

Categories: Staffing and Compensation Ideas

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