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A Compensation Reward Systems

Compensation Rewards System – Incentives for Improving Staff Performance and Productivity

Our business is such that we must rely on the performance, productivity and stability of our staff to reach higher levels of excellence. There are many ways to improving staff performance and productivity, which salon owners must do if they wish to encourage their staff to continue performing at their absolute best. And one of the best ways is providing a reward system for peak performers.

But before you develop a compensation rewards system, you must evaluate your profit and loss statement to see if you can afford a rewards or incentive package. You must first review your salon goals and objectives, and then prioritize your real needs. If you need help prioritizing, be sure to refer to my book, Creating Your Salon, which will help you in your staff retention efforts.

Mentoring –– take time to seek out feed back from your staff in private one on one meetings. Lets them know you value their input. Make them feel that they are a valuable member of your team. Create an atmosphere of trust and caring, not an atmosphere of fear. Let your staff know that your door is always open if they need help and support. above all work hard to earn their trust and loyalty by being fair and compassionate towards their needs.

Maintains Business Stability — combat staff turnover, no salon or staff will grow when you have a merry go round of staff turnover. Naturally our other staff members will question their job security and your leadership qualities if turnover is a constant problem.

Leadership —  Leadership starts at the top .Whether you like it or not, you are captain of your team, it is your responsibility to take your team to higher levels of excellence. It will be your challenge to earn the trust, confidence and support of your team in sharing your goals and vision for your business. Always lead by example.

Excellence starts at the top. A good leader inspires others with confidence in him, —- a great leader inspires them with confidence in themselves.

Praise and Recognition — sometimes a little pat on the back will do wonders. It shows you appreciate their hard work and effort. Work hard to make your team feel valued and appreciated. A little personal note with their pay check acknowledging performance from time to time will always be appreciated. Perhaps a little card on their birthday or flowers on their workstation on mother’s day. Maybe ordering lunch on a busy Saturday would be a nice gesture.

A Simple Thank You Card —Let your staff member know you appreciate their efforts towards contributing to a professional and positive team environment. Let them know you appreciate their loyalty and hard work.

Treat Each Employee with Respect and Dignity — create an atmosphere of trust, not an atmosphere of fear. Make sure you let your staff know that your door is always open if they need help and support. Always treat people the way you would want to be treated.

Show that You are Organized — An important part of leadership is to show your staff that you are organized . Give them the educational tools to succeed .

Make Your Staff Feel Special — work hard to make each staff member feel special and important. Always praise in front of others. Work hard to make them feel like winners.

Gift certificates for peak performers — give them a gift certificate for exceeding your goals  and expectations .Perhaps a gift certificate to Starbuck ,s or for dinner at a local restaurant . Set targets with a rewards systems for a job well done .

Team contests     –have team contests for selling the most in retail or other salon services

A suggestion box — Ask your staff for suggestions on how the salon can be better, then reward person who offered the best suggestion

Bonuses    — offer a special bonus for not missing work for a year or tardiness. Perhaps a bonus for the most improvement, or for salon services.

Time off Certificates — for your peak performer. Reward them with a special day off.

A Fun Field Trip or Family Picnic – perhaps a day at the beach. This will contribute to teamwork


A Benefit Package Based on Performance and Affordability .

Define your priorities and objectives. Let me share with you some other incentives and guidelines for improving staff performance and productivity.

I suggest you keep this rewards program simple and easy to understand for both staff and management. Most salon owners work long hours behind the chair, thus limiting their time to improve and reward productivity and performan



 The best reward is working hard to keep your staff busy with a measured flow of new customers, after they have proven to you that they understand your quality control system. Of course you must monitor to see if they are performing to your expectations as well as monitoring their referrals and customer return rates.

 Create a Team Culture, so everyone shares your goals and vision, a house divided will never grow.

Team work helps contribute to a very positive and fun salon environment

Positive and Professional Salon Environment, where everyone is happy, make sure when you add a new member to your team, your new team member will be compatible with your other employees.


Education – invest in your salon greatest profit potential by educating your staff. Your challenge is to help your workers build self esteem and self confidence in themselves and in their artistic skills. I urge you to work hard to make your staff become successful. If you show them how to double and triple their income, you will double and triple your profits. Always deal in terms of their benefits, not yours.

I will be addressing all the above at my 2 day business only seminar in may 2018.

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