Compensating staff comes from many different areas. The owner should work for the staff.  If the owner’s attitude is one of ownership, you can expect a high turnover rate with your staff, or at least mediocre work and an unhappy staff looking for a reason to jump ship at another job opportunity. This does accomplish anything; you will be training new people more than helping seasoned employees develop. It's the same cycle we try to combat in regards to retaining our students. One thing to do is by setting up a financial arrangement that allows the staff to hold themselves accountable for the results in the school.

At first glance this appears very complicated, but it really is simple.  Everyone has on them a sign that says, “Make me feel important.” We must never forget this. Companies have thrown the word “Team” around so much that it has become a cliché. If you are an owner and you really want a dedicated, reliable staff (that act like the owner), you need to consider the best possible ways to lead a strong team.

Your staff need to feel that they are a part of your vision. They need to understand what your vision is first off.so they can help see this vision through. Everyone needs a clear view of where they are trying to go; otherwise, they may just go in circles. So make your dreams and goals crystal clear to your staff, so they can help.

Financial payment to our staff is set up with bonus levels in many different important areas.  First of all, they get a small base. Most people could not survive very long on just this base pay.  This is important.  If they don’t produce, they will weed themselves out. Let’s face it, we don’t hire staff to run the school, we hire staff to grow the school.  If the school isn’t growing, someone’s not working hard or smart enough. 

The next methods of financial payments are set up to inspire the staff in specific areas:

Cash Register Bonus- We pay our full-time staff (all of them) 5% of all the gross dollars that are rung in the register that is over $5000. So once they reach $5000 in gross receipts, they know they can count on 5% of everything above that.

Belt Promotion Bonus- We pay our staff $5 for every student that promotes to the next belt level. This is important, because if the students are not getting ready in time and promoting (testing), they could soon be gone.  It creates a sense of urgency to inspire the instructors to stay on task. You simply need to run the tests to make sure the promotions are warranted. 

Seminar or Event Bonus-  If our staff leads a specialty seminar, or if they hold a birthday party, lock in, or any social event, we split the profit with them.  All of the profit made from the event is split 50% to the school and 50% for the staff to divide. If they do some extra work to generate some revenue for a seminar you are hosting at your school, there may be a way to figure this in to the bonus as well. 

Tuition Bonus- This one can get really big. There are different methods for calculating this one. Some choose to look at their monthly income, and when that income hits a certain level, then a bonus kicks in. Another method is encouraging staff to bring in their own prospects. When that prospect signs a contract, the staff member then receives a bonus.

Other-

Think about benefits. Give your staff the opportunity to have retirement plans, and can withhold money pretax bimonthly.  Provide 90% health insurance for your staff; look into the various plans out there. They pay extra for their families. 

We have annual outings for our full-time staff.

Education could be one of the least appreciated ways to compensate staff, however probably the most important.  Someone told me once that the only thing worse than training your staff and having them go somewhere else, is not training them and having them stay. Send your staff to conferences such as with Napma and pay for their registration fees, hotel, and some meals. Have guest speakers and instructors come to our schools for seminars.

Every year, we have some type of annual prize (contest) that they can win if they reach their goals. Look to a cruise or some other kind of trip. I think having something really big out their makes it more fun.  Just think, if they win the (one time this year) big prize, they also raised their bonuses to new highs. By doing this, they helped your school grow quite a bit, and they should be rewarded for that. Here is a way to do so.

As the owner, your job is to help them win– to help make them successful. If they’re successful, you and your school are successful.

Works Consulted

• Martial Arts Professional. National Association of Professional Martial Artists- NAPMA