There are a variety of ways to reward Salon Managers and Receptionists but it’s important to first understand your staff’s needs as well as aligning those needs with your business. In this post, I’m going to explore the benefits of incentives, reward ideas and provide some practical examples for you to take inspiration from.
What are the Benefits of Incentives in Salons?
Your team will feel motivated to do their best if they are praised and recognised for their best efforts.
Staff are more likely to stay with a company who recognise and reward them for their skills.
Salon managers will see the bigger picture and will help push the company to keep on succeeding.
What Incentives can I give my Salon Managers?
Money is always the obvious one but there are other effective ways to reward including:
- Simple recognition – a thank you or well done can be all it takes
- Education – keep your team educated with discounted or free training courses
- Competitions – healthy competition can encourage managers to put their best foot forward
- Gift certificates – a more thoughtful reward and a good alternative to money-based incentives
What are you Rewarding your Salon Team for?
A certain level of standards should be expected and maintained to begin with however a little extra goes a long way.
Reasons for rewards could include:
- Customer satisfaction
- Customer retention
- Achieving sales targets
Retail and Service Commission Based Incentives
It’s advisable to consider the most important KPIs that you want staff to focus on. In our salon, we focus on 4 KPI’s and have 1 major one which provides the highest return.
As an example:
KPI Example: Sales are higher than the target
Target: sales are higher than the target
Commission if achieved: 40% on sales, 20% on vouchers, 20% on courses
There is a multitude of commission-based systems but here are some recommendations:
Fixed – a set percentage is given of a product’s sale price when a sale is made.
Variable – commission is based on tiers e.g a higher rate of a commission if additional sales are made in a certain period of time.
Residual – offers passive income long after the initial sale
Commission based example below:
Weekly service totals
£900 – £1000 10
£1001 – £1101 15
£1102 – £1202 20
£1203 – £1303 25
Weekly Retail Totals
£75+ 7% of the total sold
£100+ 10% of the total sold
£200+ 12% of the total sold
HOW CDC Accounting Can Help
We can assist in helping to set up an automated commission structure. Staff members can then fill it in themselves so they’re able to see how much they need to generate in order to earn the amount of commission they want.
Contact us today via phone or email to discuss your options.