How do you pay your managers?

Looking for ideas on how to pay managers based on sales(plus pay).

write a check.

Seriously, I am interested in this thread again. There are several discussions about this in the archives, but some new people have joined the circle and may have some new ideas for us, too.

I had a manager, he wanted to be put on Salary so that “if i need him more then 40hours a week, the company would not suffer”.

For some ignorent reason after the 2nd week he worked for me, i took him off hourly and did put him on salary. Did’nt show up for 2 days and expected to get paid for it… i thusly canned him.

So, hourly is my way to go. :shock:

We do hourly but I wish it was salary based on results, if its just hourly you mineaswell hire some 16 year old highschool kids becouse they will care about as much about your business as your hourly non commisioned based managers. Commision is the way I will be going with my next store.

How would you go by commission?

Would your commisions be based on daily sales for that particular mgr?

WHEN I grow enough to the point that I am not working 75 hours a week and I can hire a manager I plan on paying based on performance. First is salary…approx. $28,000 a year(roughly $540 a week). This isn’t enough salary to allow someone to sit on there butt and make a decent living so it may motivate. Then customer satisfaction and how well complaints are handled and increased sales and finally bonuses based on keeping food costs below 30% and payroll below 18% which would be given quarterly(anyone can do it for a week or two). Finally if they can do all of the above and increase my revenue by 30% at the end of a year they will be rewarded with a cruise for two to the bahamas including airfare! Does this sound unreasonable?

My manager’s potential is 20% of profits. In order to get the entire 20% he must hit criteria. Here’s how the bonus breaks down:

…MY Bonus Structure…

Sales over budget…20%
Labor Cost…20%
Food Cost within .5%…20%
service…20%
product…10%
cleanliness…10%

We pay $550.00 wk plus 20% profit.

Some of these are easy math to figure out. How do you measure the last three elements of the list? It seems that a subjective measure by upper management would be risky in this very structured layout.

Russ
How and when do you pay your 20%.Are your mgrs treated as a group or individuals.?

Russ and J_rokk

You guys don’t mind sharing full P and L’s with your managers in order to pay them the 20% of profit?