Rewarding Employees without Blowing the Budget. Dr. Kerry Webb The Business Doctor

Transcription

1 REWARDING EMPLOYEES

2 Rewarding Employees without Blowing the Budget Dr. Kerry Webb The Business Doctor

3 What a Great Country to live in!

4 Let s talk about YOUR team. Please raise your hand if you have at least 3 employees. Remain raise your hand if you have 10 or more employees Now who has TEAM MEMERS?

5 Who knows who this is?

6 BUSINESS GROWTH MODEL Team Culture

7 Questions 1 st Do you have Employees or Team Members? What is the difference?

8 Questions 2 nd Do you have customers or clients? What is the difference?

9 Questions 3 rd Are you the Boss or the Coach?

10 Questions 3 rd Are you the Boss or the Coach? a Manager or a real Leader? What is the difference? - MOTIVATION & ENERGY

11 MOTIVATION Two Forms of Motivation External? Internal?

12 GOALS Two Types Short term? Long term?

13 BUSINESS GROWTH Gross Profit? Net Profit?

14 CHANGING THE WAY WE PLAY THE GAME Step 1 - Create a Team Culture Step 2 - Design an Annual Game Plan Step 3 - Build a Reward System for Behaviors Step 4 - Enlist a Coach for Accountability

15 CHANGING THE WAY WE PLAY THE GAME My company increased from $970,000 to $1.4 M in 2016 (with a 9.7% NET PROFIT) DB We increased from $760,000 to over $1M in 2016 HM After being flat lined at $ M for three years, we went over $3.1 M in 2016 & increased to 12% NET RS

16 CHANGING THE WAY WE PLAY THE GAME We increased from $1.8M to $3.9M in 4 months from September to December in residential service ED We were at $1.6M in 2014 and grew to $2.4 M in 2015 and finally to $4.3 M in 2016 (with a 21.3% NET PROFIT) JS

17 BUSINESS GROWTH MODEL Team Culture

18 GET OUR THINKING RIGHT

19 CHANGING THE TEAM CULTURE Step 1 Reward the right behaviors. Step 2 Reward performance results

20 CHANGING THE TEAM CULTURE Tech Behaviors CSR Behaviors Comfort Advisor Behaviors

21 BUSINESS GROWTH MODEL Team Culture Annual Game Plan

22 PREPARE YOUR MIND FOR WHAT YOU WANT TO HAPPEN!

23 THE ANNUAL GAME PLAN Must have a specific strategy for each quarter. Based on service calls Predict replacements in advance Predict new maintenance club memberships Establish clear revenue goals

24 THE ANNUAL GAME PLAN Must know your monthly BREAKEVEN. Labor & Materials + Operating Expenses = Total Monthly Breakeven

25 REWARD TEAMWORK EVERY team member knows their targets They will win more often. When you keep score, they will score more often.

26 BUSINESS GROWTH MODEL Team Culture Annual Game Plan Reward System

27 REWARD TEAMWORK Spiffs are okay..but BONUS REWARDS produce better results. With bonus rewards, they will bonus more often If you are paying more rewards, you are definitely making more money.

28 CHANGING THE WAY WE PLAY THE GAME Each technician starts with a base target for performance. EXAMPLE: 4 replacement systems or 8 solid leads 90% check-ins 8 customer reviews monthly (4-5 star) $4,000 a week in revenue $20,000 per month in revenue Company goal of 12 replacements per month for $78,000

29 NOW THE FUN BEGINS Each technician has a monthly target for acceptable performance. After they meet their goal they earn: EXAMPLE: $50 or $100 bonus for each $1,000 in service AFTER $20,000

30 NOW THE FUN BEGINS Each technician has a monthly target for acceptable performance. After they meet their goal they earn: EXAMPLE: $50 bonus for each $1,000 in service AFTER $20,000 Extra 2% commission on each system AFTER the 4 th system sold OR Extra 1% for every lead that sells after 4 systems sold

31 NOW THE FUN BEGINS Each technician has a monthly target for acceptable performance. After they meet the goal they earn: EXAMPLE: $50 bonus for each $1,000 in service AFTER $20,000 Extra 2% on every system AFTER the 4 th system sold OR Extra 1% for every lead that sells after 4 systems sold Additional 3% for every system AFTER company goal met OR additional 1.5% for every lead AFTER company goal met

32 NOW THE FUN BEGINS Each CSR has a monthly target for acceptable performance. After they meet their goal they earn: $100 bonus for each week the company achieves revenue goal Double commissions on every maintenance club AFTER they have sold 10 each month A good CSR can sell more maintenance club memberships than 3 techs combined An effective CSR will earn an extra $200-$300 per month within the first year of selling a 3-tier maintenance program

33 NOW THE FUN BEGINS Maintenance tech pay program.

34 NOW THE FUN BEGINS Maintenance tech pay program. Base pay per tune-up and earn a % of average invoice for any add-ons. 10% - achieve EPA certification(base Pay) 11% - complete at least one NATE certification per year 12% - complete 90% check in the previous week 13% - customer reviews for 35% of calls in the previous week 14% - 15 maintenance club memberships in the previous month 15% - on invoices over $300

35 Maintenance Tech Pay Program Was it worth it? How much revenue would you expect an average maintenance technician to bring in during a calendar year? $150,000? $200,000? $250,000 $300,000?

36 Maintenance Tech Pay Program Was it worth it? How much revenue would you expect an average maintenance technician to bring in during a calendar year? $400,000? $500,000 $600,000? $700,000? $800,000? $900,000?

37 Maintenance Tech Pay Program What would you say if I told you that James broke the $1 million mark in sales as of the 3 rd week in December? How many of you using an hourly pay system got this kind of results in 2016?

38 GROWING YOUR BUSINESS This contractor grew his residential business from $1.2 million in to $1.7 million in 2015 to $3.5 million in 2016.

39 BUSINESS GROWTH MODEL Step 1 Step 2 Step 3 Step 4 Team Culture Annual Game Plan Reward System Coaching

40 BUSINESS MAGIC HAPPENS The magic of creating a business game plan is 1 st people are way more successful in hitting a target if they know exactly what the target is 2 nd people are more likely to exceed the target if there is a bonus or higher reward available 3 rd After the company s monthly goals are met over half your OVERHEAD costs disappear

41 BUSINESS MAGIC HAPPENS NOW. You can easily afford to pay an extra 2% or 5% because your have reduced costs by 50%. Your profit goals for the month will have been achieved You are sharing the icing on the cake with the people who added the ingredients to make the cake.

42 SUMMARY Who will keep you accountable this year so that you achieve greater results than ever before?. Better culture Powerful game plan Rewards for behavior and results

43 SUMMARY Step 1 Step 2 Step 3 Step 4 Annual Team Reward Game Coaching Culture System Plan

44 Rewarding Employees without Blowing the Budget Dr. Kerry Webb The Business Doctor