One (very) large bonus scheme.
Hopefully this will focus everyones attention somewhat.
We need to recover the trend we’ve been on since @2010. As you know, 2016 we’re heavily down on revenue. I want this back.
Using calendar years I like (despite it not being in sync with the financial year) as it of course is year end, Christmas, and the finish gives us a reasonable break period.
We have hit the ground running (if not sprinting) for 2017. As I type this storage is looking good, packing materials are doing well, and next week is the highest revenue domestic moving week for about 3 years.
I wonder if we can keep this going? I wonder if you can assist even more so than you’re already doing?
To this end I am setting up a revenue based bonus scheme for 2017. Its a biggie, but then so is the target. Is it achievable – yes (just), will it be easy? No.
Our overall revenue target for the calendar year we’re in is £1,159,300. This would ‘catch us up’ from 2016.
Now, different staff have different influence levels. Therefore the bonus pot cannot be split equally. Moreover, I will be deducting the cost of damage, and dissatisfied customers from whatever revenue we hit. In 2016, including vehicle damage this is below £4k with customers goods damage coming in at less than £2k. So, we’re doing ok here. If we improve again…..
Op’s staff can influence this way way more than they think. The more capable you guys are/become, the more work we perform. It really is that simple. The more we achieve with lesser numbers, the more revenue we’ll pull in. Moreover that’ll feed into my confidence levels which will raise prices and conversion levels. This is provable science. When you guys do bad, we all do bad, and my performance suffers too. Same goes for the girls and Geoff. Great service and finding the angles in the diaries, and securing storage sales, well, its obvious the effect you can have.
So, what size the pot? Well, if we hit that (MAHOOSIVE) revenue target (and not a penny less) then the pot will be £32,700 in total (now bear in mind an additional 11% is on top in National Insurance) so this is a big big figure for what would be an outstandingly brilliant annual performance.
I am aware though that this upper figure would really take some doing.
There is a lower target. A target that still represents good growth but simply gets us ‘back on track’ rather than ‘catching us all the way up’.
The lower target is £1,102,250*
If we achieve this instead then the bonus will still be tasty, The amounts per person will however drop by 1/2.
If we fail either, this scheme is null and void. In such event, no moaning. Thats the thing about bonus’ and targets. They invite the possibility of failure. To which I say, if you don’t like the thought of it, then don’t fail.
The split is as follows, and this is for the upper target. The 4 on site staff Jane, Tracey, Donna and Geoff would receive three thousand pounds each (4/5 for Jane if still on a four day week). All operational staff would receive two thousand pounds each. Andy Watson and Paul Lancet in recognition of their Saturday influence (assuming min 10 Saturdays worked each at Office/front of house level) will receive an additional two hundred and fifty pounds over and above the op’s bonus.
This is do-able. Seriously. All that has to happen is that target is met, or exceeded. Moreover both these targets are do-able with the existing staff numbers, but the room is there within the bonus for another member of op’s staff, maybe even two. I’d be happy if we sustained 11 full time op’s by year end.
I will arrange with Phil that we have an up to date figure ready for last working week in December.
Any staff that start part way will have the bonus calculated pro-rata by the month.
Happy to chat about this if anyone desires.
Hopefully this is suitable motivation for everyone. This scheme does not affect any decisions regarding the appraisal scheme**.
p.s just for info, if we’d had the chance to work just 2 Saturdays per month then this on their own could add £15,000 towards this total.
Then there’s bank holidays too…..
*for info, year end 2015/16 annual revenue was £1,066,000 (nearasdammit) so you can see that these targets really are possible.
**This won’t set a trend. I cannot say that we’ll do this every year, let’s see how it goes.