The document discusses the structure and challenges of typical fitness departments. It proposes restructuring departments with distinct roles like Fitness Director, Group Fitness Director, Personal Trainer, and Fitness Service Specialist. These roles would have clear qualifications and responsibilities focused on member experience, programming, revenue, and staff development.
This document discusses various time-based and productivity-based incentive plans for workers. It describes incentive plans like the Halsey Plan, Rowan Plan, Bedaux Plan, Emerson's Efficiency Plan, Gantt's Task and Bonus Scheme, and Taylor Incentive Plan. These plans provide bonuses or higher wages to workers for completing tasks faster than a preset standard time or at a higher productivity level than standard. The plans aim to motivate workers by rewarding those who are more efficient. Formulas for calculating wages under each plan are provided with examples. Advantages and disadvantages of each plan are also summarized.
The document discusses individual and group incentive plans. It describes incentive plans as formal schemes used to promote specific actions or behaviors. It notes incentive plans differ based on payment method, performance measurement, and employee coverage. The types of incentive plans discussed include merit pay, profit sharing, ownership, and group incentives. Conditions for effective plans include clear communication, employee understanding and participation, and timely bonuses. The document also covers individual incentive plan types like piecework, standard hours, and bonuses, as well as advantages and disadvantages.
This document discusses different types of group incentive and team-based compensation plans including Priestman's plan, Rucker plan, Scanlon plan, and gain sharing/profit sharing plans. It provides details on the key features and objectives of each plan, such as rewarding group performance, encouraging cost-saving activities, and sharing profits with employees. The plans aim to foster cooperation and improve productivity and motivation among team members.
TCS is one of India's largest private sector employers with over 250,000 employees. The document discusses TCS's compensation strategy, including its components such as basic wages, incentives, and employee benefits. It also describes TCS's EVA compensation model which measures operating and financial performance to determine employee compensation. Surveys show high levels of employee satisfaction at TCS compared to industry averages, particularly regarding training, appraisal systems, and overall satisfaction. TCS uses a combination of fixed pay and variable pay linked to performance to incentivize employees.
The Productivity Linked Wage System (PLWS) theory addresses how to motivate employees through effective compensation contracts. It discusses incentive problems that arise from misaligned interests between employers and employees. PLWS proposes using a mix of fixed salaries and variable pay linked to measurable outputs to both insure workers against risks and incentivize better performance. Key elements include output-based pay to select more productive workers, and using the appropriate measurement metrics and time units for different job types.
This document discusses various types of employee compensation including base compensation (wages and salaries), supplementary compensation (fringe benefits), and incentive compensation. It describes individual and group incentive plans and different wage payment systems like time wage, piece wage, and balanced systems. Key aspects of compensation management in India are outlined such as wage structures, minimum wage policies, and components of pay. Factors influencing wages and objectives of national wage policy are also summarized.
This document discusses various types of incentive schemes and performance-based pay plans used in human resource management. It defines incentives as variable awards granted to employees based on their performance. Several types of incentive plans are described, including straight piece-work systems, standard hour systems, and Halsey, Rowan, and Barth variable sharing plans. The document also outlines prerequisites for effective incentive systems, such as scientific work measurement and worker cooperation. Overall, the summary provides an overview of common incentive structures and considerations for implementing performance-based compensation.
This document discusses various time-based and productivity-based incentive plans for workers. It describes incentive plans like the Halsey Plan, Rowan Plan, Bedaux Plan, Emerson's Efficiency Plan, Gantt's Task and Bonus Scheme, and Taylor Incentive Plan. These plans provide bonuses or higher wages to workers for completing tasks faster than a preset standard time or at a higher productivity level than standard. The plans aim to motivate workers by rewarding those who are more efficient. Formulas for calculating wages under each plan are provided with examples. Advantages and disadvantages of each plan are also summarized.
The document discusses individual and group incentive plans. It describes incentive plans as formal schemes used to promote specific actions or behaviors. It notes incentive plans differ based on payment method, performance measurement, and employee coverage. The types of incentive plans discussed include merit pay, profit sharing, ownership, and group incentives. Conditions for effective plans include clear communication, employee understanding and participation, and timely bonuses. The document also covers individual incentive plan types like piecework, standard hours, and bonuses, as well as advantages and disadvantages.
This document discusses different types of group incentive and team-based compensation plans including Priestman's plan, Rucker plan, Scanlon plan, and gain sharing/profit sharing plans. It provides details on the key features and objectives of each plan, such as rewarding group performance, encouraging cost-saving activities, and sharing profits with employees. The plans aim to foster cooperation and improve productivity and motivation among team members.
TCS is one of India's largest private sector employers with over 250,000 employees. The document discusses TCS's compensation strategy, including its components such as basic wages, incentives, and employee benefits. It also describes TCS's EVA compensation model which measures operating and financial performance to determine employee compensation. Surveys show high levels of employee satisfaction at TCS compared to industry averages, particularly regarding training, appraisal systems, and overall satisfaction. TCS uses a combination of fixed pay and variable pay linked to performance to incentivize employees.
The Productivity Linked Wage System (PLWS) theory addresses how to motivate employees through effective compensation contracts. It discusses incentive problems that arise from misaligned interests between employers and employees. PLWS proposes using a mix of fixed salaries and variable pay linked to measurable outputs to both insure workers against risks and incentivize better performance. Key elements include output-based pay to select more productive workers, and using the appropriate measurement metrics and time units for different job types.
This document discusses various types of employee compensation including base compensation (wages and salaries), supplementary compensation (fringe benefits), and incentive compensation. It describes individual and group incentive plans and different wage payment systems like time wage, piece wage, and balanced systems. Key aspects of compensation management in India are outlined such as wage structures, minimum wage policies, and components of pay. Factors influencing wages and objectives of national wage policy are also summarized.
This document discusses various types of incentive schemes and performance-based pay plans used in human resource management. It defines incentives as variable awards granted to employees based on their performance. Several types of incentive plans are described, including straight piece-work systems, standard hour systems, and Halsey, Rowan, and Barth variable sharing plans. The document also outlines prerequisites for effective incentive systems, such as scientific work measurement and worker cooperation. Overall, the summary provides an overview of common incentive structures and considerations for implementing performance-based compensation.
Wages and salary - compensation management - Manu Melwin Joymanumelwin
This document discusses wages and salaries as forms of employee compensation. Wages are based on an hourly rate and the number of hours worked, so paychecks vary each period depending on hours. Salaries are fixed annual amounts paid regularly in installments regardless of hours. Wages typically receive overtime pay for hours over 40 per week, while high-paid salaried employees usually do not receive additional pay for overtime hours.
This document discusses group incentive plans. It presents information on different types of group incentive plans such as group bonus plans, group efficiency bonus plans, budgeted expense plans, Scanlon plans, and Towne plans. It provides examples of calculations for determining bonuses under different plans. It also discusses the advantages and disadvantages of group incentive plans. The key aspects covered are calculating bonuses based on cost savings, production targets, budgeted expenses, and comparing actual vs standard performance.
This document provides an overview of incentive theory and common incentive plans used in industry. It discusses the purpose of incentives to motivate workers and increase productivity. Both positive and negative incentives are described, with an emphasis on the advantages of various types of positive financial incentives over negative incentives. Individual and group incentive plans are compared. Key aspects of developing an effective incentive plan like job evaluation, work measurement, trade union acceptance and application scope are covered. Finally, some standard incentive plans like piece work, standard hour and Halsey premium plans are explained with examples. The document aims to provide guidance on incentive plan design and implementation for productivity improvement.
Incentives - compensation management - Manu Melwin Joymanumelwin
This document discusses various incentives that can be offered to employees, divided into monetary/financial incentives and non-monetary/non-financial incentives. Monetary incentives include regular salary increases, bonuses for meeting targets, profit sharing, stock options, commissions. Non-monetary incentives include recognition, career advancement opportunities, job enrichment, participation in decision making, and job security. The incentives are intended to motivate employees and improve their work efficiency.
PowerPoint presentation on Variable Pay Viren Patwa
Hello friends my self viren an i gonna share u PowerPoint presentation on Variable Pay with important details highlighted
If u like my presentation pls like an share have a good thank you
The document discusses various types of incentive payment plans for employees, including individual and group incentives. It describes different incentive plans such as profit sharing, stock ownership, gain sharing, and performance-based plans. The document also provides detailed explanations of several common incentive calculation methods, including Halsey, Rowan, Barth, Bedaux, Taylor differential piece rate, Merrick differential piece rate, Gantt task system, and Emerson's plan. It concludes with conditions for effective implementation of incentive plans.
This document presents an overview of several types of incentive plans, including the Halsey Premium Plan, Halsey-Weir Premium Plan, Rowan Premium Plan, and Bedeaux Plan. The Halsey Premium Plan pays a bonus based on 50% of time saved. The Halsey-Weir Plan pays a bonus of 33.33% of time saved. The Rowan Plan calculates bonus as a percentage of time saved relative to allowed time. The Bedeaux Plan expresses work in standard time units and pays bonus on units completed beyond standard.
This document discusses different types of incentives used to motivate employees. It describes monetary incentives like direct pay-based plans (e.g. salary, overtime pay) and indirect pay-based plans (e.g. insurance, pension). Six specific monetary incentive plans are outlined, including Halsay's plan, Rowan's premium plan, and Emerson's efficiency bonus plan. Non-monetary incentives like recreation, status symbols, and awards are also discussed. Finally, the document lists twelve requisites for effective incentive plans, such as plans being simple, just, attainable, and providing incentives for both quantity and quality of work.
The document provides an overview of the Department of Labor's new final rule regarding overtime exemptions and salary thresholds. Key points include:
- The minimum salary level required for exempt status will increase to $47,476 per year or $913 per week.
- Employers have options for compliance such as reclassifying employees, limiting hours, or raising salaries. This will impact budgets, managers, and employee motivation.
- Exemption criteria include salary level tests, salary basis tests, and duties tests for executive, administrative, professional, highly compensated, computer and outside sales exemptions.
- Next steps for employers include cost analysis, compensation redesign, benefits reviews, policy updates, communication,
Independent Ltd provides totally independent HR advice and expertise. They have experts in areas such as talent management, change management, HR transformation, and interim HR leadership. Two experts, Philip Clarke and Harry Dunlevy, have led large-scale workforce restructurings and downsizing efforts at major international organizations. A third expert, Rob Meakin, has extensive experience as an HR director at several FTSE100 companies. Independent Ltd offers services including executive search, coaching and outplacement, recruitment process outsourcing, interim management, and research. They focus on attracting, developing, and retaining top talent for their clients.
The document discusses different types of incentive plans used to motivate workers, including individual and group plans. Individual plans can be time-based or production-based, setting standards for time to complete tasks or units of output. Group plans reward cooperation and teamwork. Specific incentive plans discussed include Halsey, Rowan, Emerson, Bedeaux, Taylor, Merrick, and Gantt plans, outlining their mechanics for determining wages based on standards and incentives for efficiency.
The term INCENTIVES mean, something which encourages a person to do something. Or the “extra financial reward/ motivation”.
Incentives is the performance-link reward to improve motivation & productivity of the employees.
Incentives includes all that provide extra pay for the extra performance in addition to regular wages for the job.
This document discusses wages and salaries. It defines wages as payments made to blue-collar workers based on time worked, while salaries are payments made to white-collar workers typically on a monthly basis. Wage and salary administration aims to develop a fair pay system through principles of external equity based on market rates, and internal equity where more difficult jobs are paid more. Employers conduct wage surveys to determine prevailing compensation levels and ensure their pay structures remain competitive.
Wage differentials - compensation management - Manu Melwin Joymanumelwin
The wage paid to workers varies greatly. These wage differentials are mostly the result of differences in worker ability and the workers' effort in performing the job.
There are also wage differentials across occupations, because of differences in the demand and supply of laborers for particular job or occupation. These differences arise primarily because of differences in the amount of education or training required and in the desirability of the job itself.
This document discusses different types of incentive plans that provide monetary benefits to workers for outstanding performance. It describes individual incentive systems that pay workers based on the time taken to complete a task compared to the standard time. Group incentive systems reward all members of a group for increasing their collective performance. The document then examines several specific incentive plans, including Emerson, Halsey, and Rowan plans for individual incentives, and Priestman's, Scalon, co-partnership, and profit sharing plans for group incentives.
Occupational wage differentials - compensation management - Manu Melwin Joymanumelwin
The wage paid to workers varies greatly. These wage differentials are mostly the result of differences in worker ability and the workers' effort in performing the job.
The document discusses Toyota's compensation practices. Toyota calculates bonuses based on group productivity, with half of monthly salaries coming from bonuses. It has shifted to more individual-based compensation over time. Toyota motivates workers through guarantees of lifetime employment, internal promotion opportunities, and bonuses based on seniority, team performance, and individual merit. The document also reviews pay scales and salaries for Toyota positions in different regions and countries.
The document discusses incentive plans and their objectives, features, and types. It describes how incentive plans provide variable rewards to employees based on their performance to motivate increased productivity. The document outlines four main types of incentive plans classified by the International Labour Organization: 1) earnings vary proportionally to output, 2) earnings vary less than output, 3) earnings vary more than output, and 4) earnings differ at different output levels. Several examples of incentive plans are provided for each type such as piece work, Halsey plan, and Taylor's differential piece rate system.
The document discusses compensation and incentives. It defines compensation as something given in return for work, often money. Incentives encourage extra effort and are a performance-linked reward. Effective incentives plans are developed with worker input, guarantee minimum wages, are easy to understand and provide equal opportunity to earn more. Common incentives include bonuses, merit pay, sales commissions, profit sharing, and stock options plans. Incentives can be individual, organization-wide, or group-based.
This document discusses wage incentives and fringe benefits. It defines wage incentives as extra financial motivations designed to stimulate effort and reward performance. It then describes various types of individual and group incentive plans such as Halsey, Rowan, Emerson, and Scanlon plans. The pros of incentives include improved productivity and motivation, while the cons include risks to health from overwork. Fringe benefits are described as supplementary compensation provided in addition to wages, such as paid time off, health benefits, and retirement plans, with the objectives of improving industrial relations and employee welfare.
Wages and salary - compensation management - Manu Melwin Joymanumelwin
This document discusses wages and salaries as forms of employee compensation. Wages are based on an hourly rate and the number of hours worked, so paychecks vary each period depending on hours. Salaries are fixed annual amounts paid regularly in installments regardless of hours. Wages typically receive overtime pay for hours over 40 per week, while high-paid salaried employees usually do not receive additional pay for overtime hours.
This document discusses group incentive plans. It presents information on different types of group incentive plans such as group bonus plans, group efficiency bonus plans, budgeted expense plans, Scanlon plans, and Towne plans. It provides examples of calculations for determining bonuses under different plans. It also discusses the advantages and disadvantages of group incentive plans. The key aspects covered are calculating bonuses based on cost savings, production targets, budgeted expenses, and comparing actual vs standard performance.
This document provides an overview of incentive theory and common incentive plans used in industry. It discusses the purpose of incentives to motivate workers and increase productivity. Both positive and negative incentives are described, with an emphasis on the advantages of various types of positive financial incentives over negative incentives. Individual and group incentive plans are compared. Key aspects of developing an effective incentive plan like job evaluation, work measurement, trade union acceptance and application scope are covered. Finally, some standard incentive plans like piece work, standard hour and Halsey premium plans are explained with examples. The document aims to provide guidance on incentive plan design and implementation for productivity improvement.
Incentives - compensation management - Manu Melwin Joymanumelwin
This document discusses various incentives that can be offered to employees, divided into monetary/financial incentives and non-monetary/non-financial incentives. Monetary incentives include regular salary increases, bonuses for meeting targets, profit sharing, stock options, commissions. Non-monetary incentives include recognition, career advancement opportunities, job enrichment, participation in decision making, and job security. The incentives are intended to motivate employees and improve their work efficiency.
PowerPoint presentation on Variable Pay Viren Patwa
Hello friends my self viren an i gonna share u PowerPoint presentation on Variable Pay with important details highlighted
If u like my presentation pls like an share have a good thank you
The document discusses various types of incentive payment plans for employees, including individual and group incentives. It describes different incentive plans such as profit sharing, stock ownership, gain sharing, and performance-based plans. The document also provides detailed explanations of several common incentive calculation methods, including Halsey, Rowan, Barth, Bedaux, Taylor differential piece rate, Merrick differential piece rate, Gantt task system, and Emerson's plan. It concludes with conditions for effective implementation of incentive plans.
This document presents an overview of several types of incentive plans, including the Halsey Premium Plan, Halsey-Weir Premium Plan, Rowan Premium Plan, and Bedeaux Plan. The Halsey Premium Plan pays a bonus based on 50% of time saved. The Halsey-Weir Plan pays a bonus of 33.33% of time saved. The Rowan Plan calculates bonus as a percentage of time saved relative to allowed time. The Bedeaux Plan expresses work in standard time units and pays bonus on units completed beyond standard.
This document discusses different types of incentives used to motivate employees. It describes monetary incentives like direct pay-based plans (e.g. salary, overtime pay) and indirect pay-based plans (e.g. insurance, pension). Six specific monetary incentive plans are outlined, including Halsay's plan, Rowan's premium plan, and Emerson's efficiency bonus plan. Non-monetary incentives like recreation, status symbols, and awards are also discussed. Finally, the document lists twelve requisites for effective incentive plans, such as plans being simple, just, attainable, and providing incentives for both quantity and quality of work.
The document provides an overview of the Department of Labor's new final rule regarding overtime exemptions and salary thresholds. Key points include:
- The minimum salary level required for exempt status will increase to $47,476 per year or $913 per week.
- Employers have options for compliance such as reclassifying employees, limiting hours, or raising salaries. This will impact budgets, managers, and employee motivation.
- Exemption criteria include salary level tests, salary basis tests, and duties tests for executive, administrative, professional, highly compensated, computer and outside sales exemptions.
- Next steps for employers include cost analysis, compensation redesign, benefits reviews, policy updates, communication,
Independent Ltd provides totally independent HR advice and expertise. They have experts in areas such as talent management, change management, HR transformation, and interim HR leadership. Two experts, Philip Clarke and Harry Dunlevy, have led large-scale workforce restructurings and downsizing efforts at major international organizations. A third expert, Rob Meakin, has extensive experience as an HR director at several FTSE100 companies. Independent Ltd offers services including executive search, coaching and outplacement, recruitment process outsourcing, interim management, and research. They focus on attracting, developing, and retaining top talent for their clients.
The document discusses different types of incentive plans used to motivate workers, including individual and group plans. Individual plans can be time-based or production-based, setting standards for time to complete tasks or units of output. Group plans reward cooperation and teamwork. Specific incentive plans discussed include Halsey, Rowan, Emerson, Bedeaux, Taylor, Merrick, and Gantt plans, outlining their mechanics for determining wages based on standards and incentives for efficiency.
The term INCENTIVES mean, something which encourages a person to do something. Or the “extra financial reward/ motivation”.
Incentives is the performance-link reward to improve motivation & productivity of the employees.
Incentives includes all that provide extra pay for the extra performance in addition to regular wages for the job.
This document discusses wages and salaries. It defines wages as payments made to blue-collar workers based on time worked, while salaries are payments made to white-collar workers typically on a monthly basis. Wage and salary administration aims to develop a fair pay system through principles of external equity based on market rates, and internal equity where more difficult jobs are paid more. Employers conduct wage surveys to determine prevailing compensation levels and ensure their pay structures remain competitive.
Wage differentials - compensation management - Manu Melwin Joymanumelwin
The wage paid to workers varies greatly. These wage differentials are mostly the result of differences in worker ability and the workers' effort in performing the job.
There are also wage differentials across occupations, because of differences in the demand and supply of laborers for particular job or occupation. These differences arise primarily because of differences in the amount of education or training required and in the desirability of the job itself.
This document discusses different types of incentive plans that provide monetary benefits to workers for outstanding performance. It describes individual incentive systems that pay workers based on the time taken to complete a task compared to the standard time. Group incentive systems reward all members of a group for increasing their collective performance. The document then examines several specific incentive plans, including Emerson, Halsey, and Rowan plans for individual incentives, and Priestman's, Scalon, co-partnership, and profit sharing plans for group incentives.
Occupational wage differentials - compensation management - Manu Melwin Joymanumelwin
The wage paid to workers varies greatly. These wage differentials are mostly the result of differences in worker ability and the workers' effort in performing the job.
The document discusses Toyota's compensation practices. Toyota calculates bonuses based on group productivity, with half of monthly salaries coming from bonuses. It has shifted to more individual-based compensation over time. Toyota motivates workers through guarantees of lifetime employment, internal promotion opportunities, and bonuses based on seniority, team performance, and individual merit. The document also reviews pay scales and salaries for Toyota positions in different regions and countries.
The document discusses incentive plans and their objectives, features, and types. It describes how incentive plans provide variable rewards to employees based on their performance to motivate increased productivity. The document outlines four main types of incentive plans classified by the International Labour Organization: 1) earnings vary proportionally to output, 2) earnings vary less than output, 3) earnings vary more than output, and 4) earnings differ at different output levels. Several examples of incentive plans are provided for each type such as piece work, Halsey plan, and Taylor's differential piece rate system.
The document discusses compensation and incentives. It defines compensation as something given in return for work, often money. Incentives encourage extra effort and are a performance-linked reward. Effective incentives plans are developed with worker input, guarantee minimum wages, are easy to understand and provide equal opportunity to earn more. Common incentives include bonuses, merit pay, sales commissions, profit sharing, and stock options plans. Incentives can be individual, organization-wide, or group-based.
This document discusses wage incentives and fringe benefits. It defines wage incentives as extra financial motivations designed to stimulate effort and reward performance. It then describes various types of individual and group incentive plans such as Halsey, Rowan, Emerson, and Scanlon plans. The pros of incentives include improved productivity and motivation, while the cons include risks to health from overwork. Fringe benefits are described as supplementary compensation provided in addition to wages, such as paid time off, health benefits, and retirement plans, with the objectives of improving industrial relations and employee welfare.
This document discusses how active lifestyle programs can serve as an emerging marketing and retention tool for senior living communities. It outlines how the senior living industry and consumer expectations have changed, with a focus now on wellness rather than just healthcare. Active lifestyle programs that include physical, social, and intellectual activities can help communities attract residents by promoting health, quality of life, and continued engagement. The document provides tips for communities on developing effective wellness programs, including assessing resident needs and interests, ensuring staff are properly trained, and gradually implementing new programming.
Lo Stato dell’Ambiente del Pinerolese si propone di approfondire le conoscenze sulle condizioni ambientali del territorio, considerando anche l’evoluzione dei fattori di pressione che ne determinano le trasformazioni positive e negative.
Lo Stato dell’Ambiente del Pinerolese utilizza a scala locale indicatori e descrittori utili a rappresentare la situazione ambientale e territoriale della zona in questione.
The document provides an overview of AutoCAD Structural Detailing, a program used to generate detailed drawings of steel structures. It describes the key stages of structural design and documentation, capabilities of the software for modeling, editing, and automatically generating drawings and material summaries, and how it integrates with other Autodesk programs for structural analysis and design. Configuration options, tools for positioning and dimensioning elements, and techniques for creating printouts are also summarized.
Natural rubber comes from latex produced by plants and its purified form is polyisoprene. Synthetic rubber is any type of artificial elastomer or polymer that can undergo elastic deformation without permanent damage and serves as a substitute for natural rubber, especially when improved properties are needed. It is made through polymerization of monomers like isoprene and isobutylene that can be mixed in proportions to control physical, mechanical, and chemical properties by design.
1. Assessing job worth involves determining a pay structure where higher paid jobs are those with greater worth to the organization. Methods of assessing worth include traditional approaches considering internal/external factors, broad banding with wider pay ranges, and pay for specific skills/knowledge.
2. Developing a wage structure is a multi-step process including job analysis, documentation, determining relative worth, and establishing salary ranges specific to locations. Structures consider market benchmarks and internal equity.
3. Compensation plans include base salary ranges with midpoints, as well as benefits, incentives, and performance-based increases to attract, retain, and motivate employees while controlling costs and ensuring legal compliance.
Compensation is the process of providing adequate, equitable and fair remuneration to the employees. It is what employees receive in exchange for their contribution to the organization. It is a comprehensive term which includes pay, incentives and benefits offered to the employees.
PURPOSEOF COMPENSATION
THE PAY MODEL
STRATEGIC COMPENSATION PLANNING
COMPENSATION POLICY ISSUES
This document discusses different types of incentives used to motivate employees. It defines incentives as financial rewards or other valued rewards intended to encourage employees to work harder. It describes various individual incentive programs like piece-rate pay, merit pay, and non-financial recognition awards. The document also discusses incentive plans for salespeople, including salary-only, commission-only, and combination plans. It outlines team or group incentive plans and organization-wide plans like employee stock ownership plans. The document provides details on how different incentive programs are designed and their potential pros and cons.
The document discusses human resource management topics such as why people work, types of employment, types of workers, employment trends, rewards for working, functions of HR including recruitment and selection, training and development, and performance appraisal. It provides information on Maslow's hierarchy of needs, reasons people work like earning money and feeling valued, full-time vs part-time and permanent vs temporary jobs, skilled vs unskilled workers, increasing flexibility and non-traditional work arrangements, different payment systems, and the recruitment, selection, and training processes.
The document discusses various topics related to compensation and benefits at Liberty Power, including:
- Pay-for-performance strategies and incentive plans to attract and retain top talent
- Conducting regular performance evaluations and adjusting compensation based on evaluations
- Providing a comprehensive benefits package including health insurance, paid time off, training programs, and retirement plans
- Using a PEO (professional employer organization) to help administer benefits and stay compliant with employment laws across states
This document discusses compensation and employee benefits. It defines compensation as remuneration received by employees in exchange for their contributions. Compensation management is part of human resource management and helps motivate employees. There are different types of compensation including base pay, incentives, and benefits. Benefits provide indirect value to employees and include legally required programs as well as voluntary benefits provided by employers. The document outlines considerations for establishing compensation and benefit programs.
This document provides an overview of components of compensation packages including fringe benefits, incentives, and retirement benefits. It focuses on fringe benefits and incentives. Fringe benefits are forms of remuneration not directly related to tasks but can include things like company cars, health insurance, bonuses, etc. Incentives aim to motivate performance and can be individual-based like bonuses or group-based. Common incentive plans include Halsey, Halsey-Weir, and Rowan plans which provide bonuses based on time saved against standards. Group incentives link pay to team performance but can weaken individual effort relationships. Proper incentive design considers targets, funding, and fair reward allocation.
This document summarizes several motivation theories and programs, including:
MBO focuses on setting specific and measurable goals that cascade down the organization. The Job Characteristics Model links job design to motivation through five core dimensions. Recognition programs and employee involvement programs can increase motivation through feedback and participation. Variable pay programs tie pay to performance measures.
This document discusses training and development in organizations. It covers assessing employee training needs through methods like performance analysis, observation, and testing. It also discusses different types of training programs like on-the-job training, coaching, lectures, and computer-based training. Finally, it discusses performance appraisal systems and different types of reward schemes organizations use like base pay, commissions, stock options, and pension plans to motivate employees.
5
Total Reward Strategy
Total Rewards Strategy
Team D
HRM/600
July 27, 2014
Professor Carlos Jon
Total Rewards Strategy
Success at Motors and More Inc. is largely attributed to our dedicated employees, which is also attributed to the Total Rewards Strategy currently used to entice our workers. According to World at Work Organization (n.d.), total rewards refers to, “all of the tools available to the employer that may be used to attract, motivate and retain employees.” These rewards entail all the factors that an employee would perceive to be generating value from the work that they offer to the firm.
We have adopted a Total Rewards Strategy that ensures the best workers are attracted. The Total Rewards Strategy is comprised of five elements, including; compensation, benefits, performance and recognition, work life and career, and development opportunities. Good! These elements provide organizational tools to generate value from our employees. We are committed in ensuring our employees get the best rewards so that they remain productive and focused on our vision which in turn benefits our organization. Additionally, we will implement lead-lead strategy for the next three years and re-examine where we stand afterward which also complements our strategic mission and business plan.
Compensation Strategy
According to World at Work Organization (n.d.), compensation refers to the “pay provided by an employer to an employee for services rendered”. Our employees deserve to be rewarded according to their performance, which is driven by their skills, talent, and productivity. The key to retaining the “most talented” workers in any successful organization is pay for performance and a strong compensation package. The core compensation elements for our workers are;
Base pay - also referred to as “fixed pay”. This compensation offered does not differ depending on the performance of our employees. Just as the name suggests, this is a fixed amount, and is determined depending on where our employees fall in the hierarchy. Illustrate the hierarchy An annual increase is automatic for all employees on a rate of 2% of their annual pay but not to exceed more than 5% of their annual basic pay. Automatic for all employees – management and non-management; and part-time as well?
Variable Pay - used to reward our employee’s performance. This is an excellent motivational tool which has been implemented to strengthen our worker’s performance. Variable pay is normally offered to our workers after they meet minimum length of service – 2 years for managerial levels and 4 years for non-managerial levels. Additionally, this reward is only given to those employees whose annual performance reviews indicates meritorious service or performance directly resulting to an innovation of any key products or accessories.
Short term Pay – also falls under variable pay where employees are rewarded annually according to their performance as indicated on t.
Employee retention is one of the ‘Global headaches’ of many Organisation as well as Recruiters. Hiring without any expansion is showing the in effectiveness of talent acquisition. There are many internal/external factors which would be adversely affect the employee retention.
During my tenure with last Company, I have seen a lot of employees were leaving the Organisation on a rapid way. Finally I came to know that, we can reduce the attrition on a handsome margin if we looking in to the following very sincerely.
Employee retention is one of the ‘Global headaches’ of many Organisation as well as Recruiters. Hiring without any expansion is showing the in effectiveness of talent acquisition. There are many internal/external factors which would be adversely affect the employee retention.
During my tenure with last Company, I have seen a lot of employees were leaving the Organisation on a rapid way. Finally I came to know that, we can reduce the attrition on a handsome margin if we looking in to the following very sincerely.
Simulation Strategic Plan HR 304 Spring 2019Section 01800.docxjennifer822
Simulation Strategic Plan
HR 304 Spring 2019
Section 01
8:00-9:15 am
Group #4
Strategic Plan Budget Strategy
Our company has decided to give ourselves a smaller budget for the first quarter just in case we come across some bumps in the next 3 quarters. The first quarter we will decide on our options while trying to stay within budget and based on that analysis we will increase spending in areas that are not on target. We have an annual budget of $1.3 Million. In the first quarter we were originally giving ourselves a budget of $275,000 but for good reason went over to $290,000. For the next 3 quarters we have a budget of up to $336,000 each quarter give or take depending on any issues we may or may not come across. Increasing spending incrementally will leave room for improvement in problem areas.
For first quarter spending we have decided to focus on training . Having the right employees and proper training are important factors in any business and we hope focusing on these areas will improve performance and translate into higher profitability.
We are aiming to improve several of our KPI results in the first quarter. Productivity, wellbeing, and turnover are a huge concern. By improving these as well as other KPI statistics we will hopefully have a much more profitable bottom line. We will work to improve diversity and other areas with additional spending later on in the year.
Quarter 1 Practice Areas
Option #
Spending
Performance Appraisals
7
$30,000
Work-Life Balance
7
$60,000
Training
9
$75,000
Talent Management
8
$50,000
Compensation
2
$40,000
Selection
6
$35,000
Total
$290,000
Spending Analysis
Performance Appraisal-Option 7, Cost: $30,000.00
“Use results-oriented appraisals that focus both employees and managers on the impact of employees’ work, rather than on less relevant features; consequently, employee results tend to improve, with greater contribution to strategic goals.”
We chose the results-oriented appraisals for our company because we believe it will allow employees to significantly improve their results if they working towards a certain goal. Performance appraisals benefit not only the manager and employee but the overall company itself. It will give managers a chance to provide employees with positive feedback or constructive criticism. Employees will be able to know what they are doing well in and what areas they should be improving in and how to do so. Focusing our performance appraisals based off results will allow managers to compare the results alongside the goals that are set in the beginning for the employees. They will be able to pinpoint exactly the areas that need improving.
If our employees know exactly what goals are to be achieved in the beginning, they are more likely to accomplish those goals. The results will be measured to the objectives that were first given and employees will be able to determine if the goal was achieved or not.
Work/Life Balance-Option 7, Cost: $60,000
Programs to ma.
This document discusses on-the-job training (OJT) and consultancy services to help organizations implement structured OJT. It begins by listing common situations organizations face that could be addressed through OJT. It then discusses what structured OJT is, how it differs from unstructured OJT, and the benefits it provides to employees, supervisors, and the organization through standardized training. The document outlines various OJT courses and consultancy services that can help organizations set up an OJT framework, including courses for OJT managers, developers, instructors, and consultants. It positions structured OJT as an effective way to develop job-specific skills and ensure performance standards are met.
This document discusses various types of performance-linked pay programs. It describes individual incentive programs like commission and individual performance-related pay that reward individual output. Group programs like profit-sharing and gain-sharing that compensate employees based on group or organizational performance are also discussed. The document outlines some criticisms of traditional merit pay programs and contrasts performance-linked pay with other compensation approaches like salary and bonuses. Both the potential benefits of performance pay in improving motivation as well as the risks of damaging relationships and risk-taking are presented.
The DOL has published its final rules on Exemption and New Overtime Rules which President Obama predicts 4 to 5 million additional workers will be eligible for overtime pay. The effective date for the new rules is December 1, 2016 and employers need to start now to assess their current position classification levels and understand the various options to ensure compliance of the new rules by the effective date. This webinar will provide insight to the current and new rules and steps an employer will need to take to meet the new rules.
This document discusses incentive schemes and performance management. It defines incentives as extra financial rewards that motivate employees to improve productivity. Effective incentive plans are important to improve work methods and employee involvement. Key factors for an effective plan include mutual trust, consultation with workers, guaranteed minimum wages, easy understanding, equal opportunity, and periodic review. The document categorizes and describes various types of individual, organization-wide, and group incentive plans such as bonuses, merit pay, commissions, profit sharing, and gain sharing. Time-based and output-based plans are discussed as individual incentives.
Hrd 24-mathis-12e-ch13-sh-variable pay and executive compensationjamalikuka
This document discusses variable pay and executive compensation. It covers topics such as developing successful pay-for-performance plans, individual and group/team incentives, profit sharing plans, employee stock ownership plans, sales compensation plans, and executive compensation. Key factors in developing successful variable pay plans include ensuring the plan fits the organization, rewards the appropriate actions, and is administered properly.
Similar to The Fitness Department: An Untapped Asset (20)
Hrd 24-mathis-12e-ch13-sh-variable pay and executive compensation
The Fitness Department: An Untapped Asset
1. American Council
on Exercise®
The Fitness Department:
An Untapped Asset
Presented By:
Graham Melstrand
Vice-President, Business Development
2. Current Challenges Facing the
Fitness Industry
A stalled economy
An increasingly competitive marketplace
Skeptical consumers
3. Challenging Times…
Beginning in 2009 fitness facilities have
faced:
Flat membership sales
Declining revenue from fitness department
profit centers
Challenges realizing deferred revenue
4. Challenges That Won’t Go Away
Membership attrition rates in excess of
3%/month (36% annually)
Staff turnover rates 50%+ annually
Increasing scrutiny around industry labor
practices
5. How Much Does it Cost
Weak Member Retention:
$40,000-$100,000+
Replace One Average Personal
Trainer:
$11, 734.00
6. Membership Retention Calculator
Members X
_____ Annual attrition rate =
_____ Lost members X
$____ average monthly dues
$_____Lost REVENUE
Can you keep them one month longer?
8. Calculating Staff Turnover Costs
Continued
Manager or staff-led training:
– Employee compensation 5 days @ $25/hr. $1000
– Manager’s Time 30 hrs. @ $50/hr. $1500
Lost Productivity (billable training hours)
– 25 hrs./week x 12 weeks/2 @ $50/hr. $7500
Total estimated cost to onboard a single trainer*
$11,734
*Adapted from Chally Group Worldwide Employee Turnover Cost Calculator
9. Compensation: FLPA compliance
DO YOUR FITNESS PROFESSIONALS:
Have “off-the-clock” responsibilities
Work more than 5 consecutive hours without
a break?
Ever work more than 8 hours in a day?
10. Training Time vs. Floor Time and
“Split Shifts”
29 CFR 778.501 - The ``split-day'' plan.
Section Number: 778.501
Section Name: The ``split-day'' plan.
(a) Another device designed to evade the overtime requirements of the Act was a plan known as the ``Poxon'' or ``split-
day'' plan. Under this plan the normal or regular workday is artificially divided into two portions one of which is
arbitrarily labeled the ``straight time'' portion of the day and the other the ``overtime'' portion. Under such a plan, an
employee who would ordinarily command an hourly rate of pay well in excess of the minimum for his work is assigned
a low hourly rate (often the minimum) for the first hour (or the first 2 or 4 hours) of each day. This rate is designated as
the regular rate: ``time and one- half'' based on such rate is paid for each additional hour worked during the workday.
Thus, for example, an employee is arbitrarily assigned an hourly rate of $5 per hour under a contract which provides
for the payment of so-called ``overtime'' for all hours in excess of 4 per day. Thus, for the normal or regular 8-hour day
the employee would receive $20 for the first 4 hours and $30 for the remaining 4 hours; and a total of $50 for 8 hours.
(This is exactly what he would receive at the straight time rate of $6.25 per hour.) On the sixth 8-hour day the
employee likewise receives $50 and the employer claims to owe no additional overtime pay under the statute since he
has already compensated the employee at ``overtime'' rates for 20 hours of the workweek. (b) Such a division of the
normal 8-hour workday into 4 straight time hours and 4 overtime hours is purely fictitious. The employee is not paid at
the rate of $5 an hour and the alleged overtime rate of $7.50 per hour is not paid for overtime work. It is not geared
either to hours ``in excess of the employee's normal working hours or regular working hours'' (section 7(e)(5) or for
work ``outside of the hours established in good faith * * * as the basic, normal, or regular workday'' (section 7(e) (7))
and it cannot therefore qualify as an overtime rate. The regular rate of pay of the employee in this situation is $6.25 per
hour and he is owed additional overtime compensation, based on this rate, for all hours in excess of the applicable
maximum hours standard. This rule was settled by the Supreme Court in the case of Walling v. Helmerich & Payne,
323 U.S. 37, and its validity has been reemphasized by the definition of the term ``regular rate'' in section 7(e) of the
Act as amended. [46 FR 7318, Jan. 23, 1981; 46 FR 33516, June 30, 1981]
11. Questions to Answer Today
As an Industry, how did we get here?
Challenge the status quo, or more of the
same?
What can we learn from our history and
best practices in other service intensive
industries?
How can we develop a new fitness
department structure and model for
success?
12. Our To-Do List
Examine the structure of our fitness departments.
Conduct a facility self-assessment
Develop our staff
Compensate our staff ….LEGALLY.
Better position programs and services.
Keep our members
Make better use of time and money
14. Typical Department Structure
Roles and responsibilities of staff over
time
Organization charts, the playbook
illustrated
Pros, cons and questions
15. Today’s Fitness Department
Distinct roles and responsibilities
Significant source of revenue for
the club
More sophisticated programming
Large gaps exist in member
service
Requires balance between
production and development
16. The Fitness Department Today:
Current Club Organizational Chart
Fitness
Manager/Director
Group Fitness Personal Training
Mgr/Supervisor Mgr/Supervisor
Fee for Group Fitness
Personal Trainer
Participation Instructor
Fee for Group Fitness
Personal Trainer
Participation Instructor
Group Fitness New New Member
Instructor Personal Trainer Orientation
17. The Fitness Department Today:
Fitness Director
Responsibilities
– In larger facilities oversees personal training & group
fitness managers
– Set programmatic direction for facility
– Hiring, firing of fitness staff
– Training and scheduling of staff
– Limited personal training (supplements salary)
– P&L responsibilities for fitness department
Qualifications
– Degree in Exercise Science or related field (advanced
degree a bonus)
– Credible credential(s)
– Proven track record for revenue production
– Above average customer service skills
Compensation
– Salary + Bonus + Training Income
18. The Fitness Department Today:
Personal Trainer
Responsibilities
– Orientations – Lead opportunity
– Provide one-on-one or small group training services for a fee
– Deliver programming and group exercise
– Limited housekeeping
– Limited customer service
Qualifications
– Certification: Weekend to credible organizations
– Education: Varies
Compensation
– Training rates and tiers vary by facility but are primarily
revenue share with fitness professional
19. The Fitness Department Today:
Group Fitness Manager / Supervisor
Responsibilities
– Manage class schedule and balance between
free and fee-for classes
– Audition/Hire group instructors
– Teach key classes on schedule
– Some P&L responsibilities for small group or
premium classes
Qualifications
– Broad Range: Highly regarded instructor to
degree in Dance / Physical Education
Compensation
– Part-time to full-time salary + hourly to teach
20. The Fitness Department Today:
Group Fitness Instructors
Responsibilities
– Show up on time
– Teach
– Leave
Qualifications
– Broad range: Proficient participant to degree
in Dance / Physical Education
Compensation
– Hourly
21. The Fitness Department Today:
Pros and Cons
Pros
– #1 source of non-dues revenue
– Payroll expense tied to productivity
Cons
– Limited penetration rates
– Member service virtually non-existent
– Narrow margins for club
– Staff have limited stake in club’s success
Questions
– How do we deliver a high quality member
experience to all members?
– How do we ensure that new members are properly
on-boarded?
– How do we ensure that the staff work as a team
and put the club and member’s priorities first?
24. What Do We Know About
Members and Non-members?
Physical activity participation rates
Why members leave
Establishing baselines
Starting from scratch
25. Physical Activity and the U.S.
Population
13-15% of adults are members of fitness/wellness facilities
in the United States.
Membership rates vary from 6.3-21.8% by state.
While over 96% of adults acknowledge the benefits of
exercise, 80% have not acted on that knowledge.
Adults 65+ are 5x more likely to never engage in physical
activity.
Women are more likely than men never to engage in
physical activity.
56% of children do not have regular physical education.
52% or parents feel that physical education should teach
“healthy lifestyle” education.
26. Why Do People Avoid or Leave
Fitness Facilities?
Facilities are overcrowded
Dissatisfied with staff
Dissatisfied with program offerings
Management is unresponsive
Cleanliness of facilities
Outdated equipment/facilities
SOURCE: IHRSA and Consumer Reports
28. Facility Survey Exercise
www.acefitness.org/CIsurvey
Who are we?
Who are the members we serve?
What are the programs that we offer?
Are they the right ones?
Does the staffing model support our members
and programs at a high level?
Are the baselines sufficient to support our
business plan?
– Areas of strength
– Areas of opportunity
32. Program Offerings
Formal member on-
boarding process
– Inventory new member
goals and
expectations!!
Nutrition / weight
management
programs
Complementary
wellness
35. Staffing
Are your staff employees or contractors?
Do you have an education manager / fitness director
dedicated to:
– Personal training department
– Group exercise department
Do you have formal job descriptions for the following positions?
– Fitness director
– Group fitness manager or supervisor
– Personal trainer
– Group fitness instructor
Do you have mechanisms to ensure that staff hold current
CPR / AED cards and appropriate certifications?
36. Staffing (cont.)
Are your fitness professionals required to maintain
professional liability insurance?
– Personal training staff
– Group fitness staff
Do your fitness staff have floor responsibilities in addition
to training / teaching?
Are your fitness staff responsible for a minimum number of
sessions / classes per week?
Does your facility offer a formal career advancement path?
Do you offer tiered compensation to your trainers /
instructors?
Do you provide educational assistance?
What do you wish your staff were better at?
37. Interesting Fitness Industry Facts
Less than 50% of facilities surveyed have
formal job descriptions for their fitness
department positions.
Less than 25% of facilities surveyed have
a formal process to onboard new staff.
Nearly all facilities unknowingly violate
current federal labor laws with “floor
hours” and “split-shifts”
38. What are the Pre-requisite
Qualifications for Your Staff?
Degree in exercise science?
NCCA-accredited fitness certifications?
Do you require specialty training?
39. Starting from Scratch
Are we who we thought we were?
Are we serving our members interests or our
own?
What can we do to better meet the needs of
members?
What does that delivery model look like?
40. Considerations for Building a Model
Fitness Department
Structure and scalability
Professional roles and responsibilities
Balancing resources: production vs.
development
41. Creating a Facility Action Plan
Department structure
– Roles and responsibilities
– Job descriptions
– Accountability
Staffing
Professional development
Programming and Pricing
Compensation
Putting it all together
42. What Should the Future Fitness
Department Look Like?
Fitness
Manager/Director
Group Fitness Personal Training
Programs Mgr/Supervisor
Mgr/Supervisor
Group Fitness
Personal Trainer
Instructor Fee for
Free
Participation
Group Fitness
Personal Trainer
Instructor
Group Fitness Fitness Service Fitness Service
Specialist Specialist Personal Trainer
Instructor
43. Staffing: What Qualities Do
Today’s Fitness Professionals Have?
Qualified
Competent
Seeking professional recognition / respect
Desire for compensation commensurate with
experience and education
An image problem
44. What Qualities Do Consumers Look
for in a Fitness Professional?
Minimum competence:
– Has earned a CREDIBLE credential
– Fulfills ongoing continuing education
requirements.
Necessary to be effective AND successful:
– Effective communication skills
– Skilled at meeting and exceeding expectations
for customer service
– Clearly identifiable area of SPECIALIZATION
– Programs and services deliver RESULTS
46. Roles and Responsibilities
Fitness director
Group fitness director
Personal trainer
Group fitness instructor
Fitness service specialist
Options:
– Registered dietician
– Physical therapist
– Massage therapist
47. Fitness Director
Qualifications
– BA/BS, Exercise Science or related field, Master’s Preferred
– Current NCCA-Accredited certification
– Current CPR/AED card, (Instructor a plus)
– Experience (management + teaching a plus)
– Proven track record for production
Responsibilities
– Hiring/Firing
– P&L oversight for department production
– Escalations
– Staff Development
– Program Management
Accountable for
– Overall development and execution of Fitness Department business plan
focused on: Programs, Revenue Production and Member Retention
48. Group Fitness Director
Qualifications
– Bachelors Degree in Exercise Science, or related healthcare profession
– Current NCCA-accredited certification
– Proven track record and proficiency in multiple group modalities
– Current CPR / AED card (instructor a plus)
– Experience (management + teaching a plus)
Responsibilities
– Auditions/hiring/firing
– Oversight for department production and participation
– Escalations
– Staff development
– Program management/scheduling
Accountable for
– Maintaining a high level of participation, member service costs, identifying trends
and opportunities in new programming, assisting personal training staff with
crossover programs
49. Personal Trainer
Qualifications
– Degree in Exercise Science or related field preferred
– Current NCCA-accredited certification
– Current CPR / AED Card
– Consumer friendly
Responsibilities
– Lead prospective member tours
– Providing a quality member experience for ALL members
– Assessment and program design for training clients and small group programs
as assigned
– Management of assigned programs
– Maintaining a personal/professional development plan as established with
Fitness Director
Accountable for
– Programs as assigned
– Production – training sessions
– Member retention as part of the fitness department team
*IHRSA surveys indicate members prefer trainer-led tours vs. salesperson-led
50. Group Exercise Instructor
Qualifications
– Current NCCA-accredited certification
– Current CPR / AED card
– Training in any format that they intend to teach
Responsibilities
– Effectively LEAD group classes as scheduled
– Support club programs and services
– Actively engaging all members they come in contact with
Accountable for
– Assisting club in efforts to containing member visit service costs
– Member retention as part of the fitness department team
51. Fitness Service Specialist
Qualifications
– Complete member service training and facility orientation
– Excellent customer service and communication skills
Responsibilities
– Actively engage members on the fitness floor, facilitate introductions
between members
– Anticipate member needs
– Basic housekeeping
– Direct traffic to programs that may interest members
Accountable for
– Supporting group and personal training staff and facility programs
– Member retention as part of the fitness department team
52. Establishing a Plan for Success
Required Elements
– Evaluate staff
– Inventory existing programs, products
and services
– Review current policies and procedures
– Identify areas of opportunity
– Develop a PLAN!
53. Staffing Surveys- Benchmarking
Employees
Benchmarking staff
creates roadmaps for
professional
development and impact
customer service,
member retention and
ultimately revenue
production!
54. Fitness Staff Survey Items
Degree in Exercise
Science or related field?
Highest level of education
completed
Current Certifications:
– NCCA-accredited?
– Other?
Other Professional
Credentials?
Current CPR / AED Card?
Current professional
liability insurance
Other specialized training?
– Group
– Coaching license
– Other
55. Does Each Staff Person Have an
Area of Specialization?
Sports Performance
Older Adult
Weight Management
Youth
Post Rehab/Special Populations
Mind/Body
Management
Fitness Education
Or…Generalist
– Group
– Personal Training
56. Aspirations
Where do they want to be in 1, 3, 5 years?
What do they want to learn to make them more
successful?
What is their preferred learning style?
How do they learn best?
57. Professional Development and Staff
Training
Whose responsibility is it?
Creating a member / facility focused plan
Creating a career path and advancement
opportunities
Staying on track
58. Balancing the Needs and Interests of
Management and Staff
Management
– Return on investment
– Develop interpersonal, business and sales
skills.
– Staff skills must mirror member interests
Fitness Staff
– Focused on science and programming
– Expect science and programming
knowledge will drive clients to them
– Avoid courseware in interpersonal,
business and sales
59. Creating a Member / Facility Focused
Plan
Establishing baselines
Personal professional development plans
Investing in continuing education
Staff training
Mentorship
Key elements
– Knowledge, skills and abilities
– Training and development
Goal: Member retention and revenue
production
60. Baselines
To deliver the level of service and programs
the following questions need to be answered:
– What is acceptable in our model for?
• Education
• Credentialing
• CPR / AED training
• Interpersonal skills and sales training
• Experience
– Which staff meet that standard and which need
additional training?
– How will that training be delivered and by whom?
– How will we track the progress?
– How much time will we allow a staff person to meet
our baseline?
61. Creating a Career Path and
Advancement Opportunities
Generalist or specialist?
Program driven career paths
– Professional facing
– Consumer facing
Accountability: Staying on track
Measurement and compensation
62. Potential
Career Paths
O S W Y M M S F
L P E O I A P I
E
Advanced D O I U N N
C
T
E R G T D A N
R T H H G E
P
S T & E O S
A M P S
D P M B E
U E A O N & E
Intermediate L R N D T D
T F A Y P U
O G O C
R E S A
M M T T
A E I
Foundational N N
R
O
E
C T H N
E A
B
Programming / Exercise Science
Foundational Business / Marketing/Interpersonal Skills
Continuing Education Certification
Academic or Vocational Training and Education
Career Starting Point Foundational Educational Resources
63. Identify the Roles That Need To
Be Filled
Department management
Key front line positions
Program specific positions / responsibilities
64. Program Specific Positions /
Responsibilities
New Member Programs
Member Personal
Orientation Consultation
Weight
Assessment
Management
Intro to… Program Design
65. Program Specific Positions /
Responsibilities (cont.)
Training Services
Sports Post Rehab /
Performance Special Pops
Older Adult Mind / Body
Weight
Youth
Management
66. Compelling Reasons to Train
Your Staff
Training is key to Performance AND Retention….
Reduce turnover costs
Our judgment and expectations are skewed by
outliers
– Top Performers
– Under-performers
Our members EXPECT and DESERVE a high
quality experience
67. That’s Great….How Do We PAY
for Staff Training?
Time and Money
Budget for Staff Training and Development
– Establish an accrual account
Who is eligible for training?
New Staff
– Onboarding
Existing Staff
– Accrue weekly and award at the employees
anniversary
Use dollars that would be otherwise spent
on turnover related expenses
68. What About Revenue?!
• Sell SOLUTION based programs NOT Sessions
• Keep them short- 6 weeks or less
• Pricing is based on the TOTAL cost of the program
Why?
• Reduces barriers to entry by limiting exposure/risk
– Time
– Financial
– Recognize revenue
69. Example:
6-week Weight Loss Program
• 6 Week Weight Loss Program $699 Includes:
– Initial private consultation with a personal trainer who
specializes in weight management
– Food log and analysis
– Healthy grocery shopping field trip
– Personalized physical activity plan
– Meet with your trainer up to twice per week for one hour for
coaching, feedback and instruction
– Register now to secure your space
– Programs begin the first week of each month
– Small group programs also available
70. Offer Small Group Programs
to Onboard New Members!
• Offer member onboarding programs that go out on the
floor at specific time:
– Introduction to the club and program
– Fast Start
– Getting started for women
• Open to ALL members
• Small group format
• Objectives:
– REDUCE 6 month attrition rate
– Provide LEADERSHIP to new members that leads to success
71. Staff Compensation
Entrepreneur on my payroll?
Revenue share (splits), why it works on paper
and not in real life
Tiers for trainers, making it work for the club and
the trainer
Is the current compensation model the best for
the business, staff and consumer?
72. Trainer Compensation: A Closer
Look
Trainers average between 45-60% of gross revenue
from a training session + tax and benefits
Trainers are primarily compensated based on
production: sessions completed
Full-time trainers average 25 billable hours / week
(50 weeks)
Full-time benefits paid to a significant percentage of
fitness professionals in the U.S.
The training staff currently support approximately 5%
of members in the average club
What are they doing to for the other 95%?
73. Revenue Share: Does it Make
Sense?
Example based on $100 training session and
50% split with trainer
Trainer Compensation: $50.00
Social Security Tax (6.2%): $ 6.20
Medicare Tax (1.45%) $ 1.45
Discount for Multiple Sessions $20.00
Marketing / Sales Load (8%) $ 8.00
Total Cost of Session $85.65
Net to club $14.35?!
74. Revenue Share In My Club: Does
it Make Sense?
Trainer Compensation: $___.__
Social Security Tax (6.2%) $___.__
Medicare Tax (1.45%) $___.__
Discount for Multiple Sessions $___.__
Marketing/Sales Load (8%) $___.__
Total Cost of Session $___.__
Net to Club $___.__
75. Tiered Compensation:
Career Advancement or Margin
Erosion?
20 Items $80
$60 1
$55 2 $90
$50 3
1 Item
$100
Trainer Compensation Discounts for Bulk
76. Alternative Plan for Tiered
Compensation
$100
Club Margin Rate Tier 1 =
Rate Tier 2 =
Rate Tier 3 =
77. Getting Outside the Box:
Win-wins for Business and Employees
Alternate compensation plans
Look outside the industry for best practices
Testing a sample alternative compensation
model
78. An Honest Day’s Work
Salary
– The new work week 37% more!
Bonus
– Individual Production: Sessions
completed (monthly)
– Team: Retention (quarterly and
annual)
Who would do that?!
Can we do that in the fitness
industry?
What’s in it for the facility?
– Service, retention
– Employment law
79. Can it Work in My Club?
Total Training Revenue in 2010 / Total Sessions = Avg
Revenue/Session
Total Compensation in 2010 / Training Sessions= Avg Training
Rate
(Total Training Sessions / Trainers) / 50 weeks = Avg Work Week
Top Trainer Compensation in 2010 / Training Sessions= Top
Training Rate
Top Trainer Sessions / 50 weeks = Benchmark
This will help set the range for compensation and production
80. Club Worksheet
Total Training Revenue in 2010: $__________ /
Total Sessions in 2010: ___________
= Avg Revenue / Session $__________
Total Compensation in 2010: $__________ /
Training Sessions __________
= Avg Training Rate $__________
(Total Training Sessions _____/ ____Trainers) / 50 weeks
= Avg work week _______hrs
81. Putting Pen to Paper- Testing the
Model
A tier one example based on average income of $50,000 in 2010
Average Salary = 80% of average trainer income $40,000
Total Bonus Potential = 20% of average trainer income $10,000
– Productivity (measured in sessions) $ 8,000
• $666.67/month to qualify (25/week x 50 weeks)
• $10 session beyond 25/week
– Member Retention/Service Goal $ 2,000
• 4 Quarterly x $ 250
• Annual x $1000
82. Your Best Trainers: Tiers that
Make Sense
Tier One
– Meets prerequisites for employment
– Establishes personal/professional development plan
Tier Two
– Maintains credentials and conditions for employment
– Completed annual personal/professional development plan
• CEC / training
• Advanced degree in the field
– Consistently meets and exceeds production goals
Tier Three
– Above + established area of specialization
– Manages club programs in their area of expertise
– Contributes to the professional development department staff
83. Making Change…
Where Do We Start?
1. Conduct a thorough self-assessment of facility and staff
2. Establish your priorities
3. Share your vision
4. Implement change during slack times
5. Start new THEN dismantle the old
84. Tools and Resources
ACE provides a complimentary Facility Assessment
Tool which can be found at:
www.acefitness.org/clubs
Facilities that complete the survey receive a detailed
report that includes strengths, opportunities and
comparative information based on industry best
practices
A complimentary facility listing on the ACE Fitness
and Health Club Finder is included for all facilities
that complete the survey
Contact me: graham.melstrand@acefitness.org