Here's a useful rule-of-thumb when discussing compensation with your front-line sales staff:
- Each employee should expect to generate sales per hour that are 10 times their hourly pay.
- So, someone being paid $12 per hour would be "expected" to ring up $600 in sales during a 5 hour shift.
Now, clearly that 10X multiplier will be different, based on your retail industry, margins, etc. For some stores, it will be 8X; for others, maybe 12X.
But, there IS a number you can determine. And, then you can and should share it with your staff!
Ready Feedback for Each Sales Associate
Since each employee knows how much they are being paid per hour, they can do the math for themselves. Each day. Each week. Even each hour, if they want.
Especially today, people want to believe that they are making a contribution, making an impact. And they want to get frequent feedback on how they are doing.
This way, they can "Do it myself!"
Especially today, people want to believe that they are making a contribution, making an impact. And they want to get frequent feedback on how they are doing.
This way, they can "Do it myself!"
Best of all, by giving this tool to your staff, everyone can properly refocus on productivity.
Whether your store's "number" is 10X, 8X, 12X, whatever: You'll know you have a winner when you hear employees bragging that they beat the multiple!
Whether your store's "number" is 10X, 8X, 12X, whatever: You'll know you have a winner when you hear employees bragging that they beat the multiple!
