“How do I motivate my employees to do what I expect?”
I’ve heard that question over and over from our shop owner clients. And at its root, isn’t that the secret to running a successful shop?
But that question takes many different forms from the best training programs for your service advisors, to building company culture, to offering bonuses and salary raises.
There’s one trick that can accomplish all three: an incentive pay plan.
The right pay plan can empower your employees to improve their own performance, while at the same time take ownership over the success of the business.
Easier said than done. I know because over the years of owning a shop and consulting with shop owners, I’ve seen just about every pay plan known to business. Most of them don’t work, because most of them focus solely on the money.
Don’t get me wrong, that is clearly a crucial part – you need to find the right pay plan to motivate your employees without cutting into your bottom line. But a raise, regular bonus, or slightly higher hourly rate doesn’t give them a reason to keep working harder year round.
So set aside everything you think you know about pay plans, and think about what you really want. Learn how to stop micromanaging, improve morale, increase sales, and build a culture of success in your shop.
Done right, an incentive-based pay plan does three things: 1) it trains your team to act exactly the way you want them to act; 2) it holds them accountable; and 3) it motivates them to do better and keep improving.