Workers compensation is part of the definitive progress and growth of a company. In creating a pay structure, it should be an exact match to the needs and efforts of each member of the team. It is a smart move in creating new business opportunities.
Redesigning the company structure to a more team-focused organization, it will become more comfortable for the employees to adapt to their environment. In this sense, they will be more dynamic in responding to client needs.
Several factors should be put into consideration when creating a pay structure. The design should be to incentivize the efforts of the entire team.
If possible, give them a commission-based program as a way of encouraging them to do better in their jobs. For the sales team, they will initiate to sell more beyond their quotas if they know that the growth of the company is parallel to their growth as an employee.
Many companies have created a commission-based pay, and the effects are indeed promising. Some even recorded 60-70 percent growth per annum. The commission that will be generously given to the employees will pave the way for more business growth.
Provide an Avenue for Professional Growth
Employees stay to their company if they feel there’s a room for them to grow professionally. A structure commission program would be the right way to provide the employees a career path to follow. Make sure that the new pay structure is commensurate with their performance and risks.
In the new commission splits program, it is of utmost importance to understand the factors that will affect the profits of the employee as well as the company. All the expenses and overhead expenses should be accounted for as well.
Create a Simple Pay Structure
Those employees who receive commision should know the overall process that leads them to success. The payment structure should be simple and well-structured. Make sure that the new pay structure covers the risks and expenses they've incurred doing their job.
It is proven that paying beyond the minimum can increase productivity dramatically. It also has an impact on the longevity of key employees in the company. The management can also create a bonus plan to encourage the entire to do better than before.
There are many ways to compensate the hard work and effort of your team. One way of doing it is through designing a pay structure. Fair and just workers compensation is commensurate with business growth and success. At First Iowa Insurance Agency, Inc., we work hard in making sure that our clients are well-protected with policies that they can afford. To learn more about how we can help you, please contact our agency at (319) 393-5262 or CLICK HERE to request a free quote.