» Management
Developing Fair and Inspiring Compensation Models
Are your staff members being compensated appropriately?
BY BILL KATELNIKOFF
1. Talk up your club’s vision with staff Communicating your club’s vision
and mission inspires your staff and gives them a sense of purpose and a reason to go to work each day, beyond just receiving a pay cheque. For example, if your club’s vision is
to make your community healthier by providing a friendly environment for activity, this should serve as a guide for every activity your staff members undertake. Share the vision starting on each staff
person’s first day of work, and explain how what they do relates to the vision. Creating win-win opportunities for
the employee and the company is key to your compensation model being per- ceived as fair and motivating.
2. Get your accounting and key performance indicators right Be sure that your bookkeeping is up
to date and that your sales and expens- es are being recorded properly. A firm understanding of the profit-
ability of your club is an important fac- tor in determining what you can afford to pay your employees and the best structure to implement.
3. Relate incentives to achievement Set your employees up for success
by providing clearly defined roles and responsibilities. Relating compensa- tion and benefits directly to successful
achievement of key activities allows your compensation decisions to be objective. For example, an employee tasked
with registering new members and re- newing existing members will need to be proficient in completing the forms accurately and being available to ser- vice these members and prospects. The ability to measure activities
also helps you determine your top performers.
4. Decide on the format If you’re structuring with incentives
in mind, the base salary or wage, com- missions, bonuses and raises will de- pend on each employee’s specific role. The important thing is to ensure that there are elements tied to performance of key activities and responsibilities. Keep in mind that a quality
“Benefits, such as flex days, health/dental plans, savings plans and professional development opportunities can also be powerful motivators.”
24 Fitness Business Canada November/December 2013
compensation program should not fo- cus just on raises and commissions. Benefits, such as flex days, health/den- tal plans, savings plans and profession- al development opportunities can also be powerful motivators.
5. Evaluate and re-evaluate your compensation model Constantly review the effectiveness
of your compensation models. Regular evaluation does not necessarily mean changing it regularly, since this can have negative impact, but it ensures that the intended benefits are being realized. For example, if your sales represen-
tatives are being paid a bonus based on sales and renewal appointments but you notice that member additions are stagnating or declining, the sales reps may not be closing effectively. And, of course, it’s always a prudent
idea to regularly consult with a human resource professional and legal advisor to ensure that your compensation ar- rangements comply with relevant em- ployment standards.
For more information, contact the author at
billy@powerforwards.ca.
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