Would employees repond better to an incentive plan more than a flat wage?

   I'm new to the restaurant biz so please be gentle while I ask for your sage advice. I read on these forums the difficulty in attracting and maintaining good help and am looking for a better way. I don't feel I'm trying to reinvent the wheel but do you think offering employees a piece of the pie based on sales could work? "The better I do they better you'll do" type of thing? $8 hr never motivated me so why would I think it would someone else? I'm thinking that dangling a carrot in this way would give employees a vested interest in "our" business. 
  Thanks in advance for your input.
 

As your employee, how would I know that you are truthfully saying how much you are making? Are you going to open your books to everyone in your employ?
 
I know a person who operates a successful restaurant. She always complains about the cost of everything. She "took back" the employees Christmas "bonus" in 2008 (the last christmas before we left out). The bad thing was it wasn't all her money. It was a fund the employees contributed to and she was to match the amounts. She took it ALL.  If the employees didn't like it, they could find work else where. BTW, she pulled a lot of strings in that town. So if they took her to court (which none of them had the $$ to do so) they might get the $$ but they would pay for it down the road.

I agree VP, and Welcome to Roadfood. I do an incentive for most of my employees, Chefs,Managers. My night shift girl makes a flat $10 an hour now. with money/sales incentives she could make up to $15 an hour. She loves the fact of having menus that will give her the best opportunities to make her goal. She was $8 off her goal on Wed of last week, I approached her and told her I would boost her up to her top goal. I like that they get involved in the decision making for their shift. They used to be part of the problem, now they are part of the solution.......The best.............BillyB

Excellent point, I should have clarified my plan a little better. I am thinking of a small scale operation, maybe just one or two employees other than myself, so they would see every dollar that came through the door and know that I was forthcoming with them. Hopefully, if/as the business grew, there would be mutual trust between me and "my" workers (I loathe being referred to as someone's employee and don't like applying the label to others) and the cycle would continue to new employees. I want to foster the feeling that we are all in this together. Too Pollyanna?

If there is a creative element and a good solid foundation to your business ideas raw talent (before they come to fruition) you will attract good people. Easier with a track record and someone thirsty for a shot to learn and grow from existing thriving business.

Hi All,
 
I plan to do something along these lines.  I have worked for companies where only the top management and corporate win, while they work the lower level employees at low wages until they burn out and quit.  Once a month I plan to take everyone out to another restaurant, discuss what they are doing right, make sure we stay away from what they are doing wrong, discuss what would make work easier [within limits], give awards from the previous month, to build a stronger team instead of just somewhere you work right now.
 
I figure gift cards, cash, anything creative that I can come up with that I would have liked for any of my former employers to do to boost moral.  Maybe say if we sell this many of this type of burger or basket this week or month everyone gets $25 or something cool I could pick up fairly cheap to show my appreciation.  I haven't worked out all of the details yet, but thats what I plan to do to make it better for my employees. 
 
318

I love generous positive business owners!
 
As long as the awards really build as a team and do not become the breeding grounds for small factions that can create internal unrest.
 
Let's say your best employee happens to also have a body that stops traffic...or such a nice person that is viewed as a batootie kisser.
 

I wouldn't... it's my $$ and my a$$ on line line, not their's. If your profits drop will they take a decrease in pay? I think not. But IF I were to do profit sharing, I would not extend it to folks unless they had been there 1 year. I do think the holiday bonus would work better, just keep your stinkin' paws off of it. You bank can set it up in an account for you. I've worked enough places with so-called "profit sharing". Sorry but I think it's a scam. I even worked at a factory where the employees "bought" the company and we were supposed to get $$. NOT! All I could see was that the pensions disappeared and the company when bankrupt... all on paper. They still make Wrangler and Rustler jeans... just under a different parent company.  And if you can afford to do profit sharing, then you can afford to pay a better wage! Sorry but that is just my point of view.

318, think of you being Jerry Maguire, and all of your employees being (SHOW ME THE MONEY) I give a Christmas bonus, as a thank you to my long time employees, the newer employees get a $50 or $100 because I don't like to think I have enough of everything and someone who works for me can't afford gifts for their family. The incentive should get them involved in the success and quality, service, and sanitation of the operation. I have one manager that gets a $200 bonus once a month just for a 100% quality performance review. I want to pay for performance, show me a quality performance, I'll show you the money. Don't be fooled, the people are only there for one reason.......MONEY............screw all the rest of the bull****.......Quality food+Quality service=Better profits and success.....Show me the money, it took me along time to figure that out. there is no heart and soul in this business, just greedy hands wanting, without giving.................

Are tips involved in either one of the businesses?
 
Venus Paw? 318?

Thanks everyone for the replies and the help.
Billy Bob, I respectfully disagree with you about $$$ being the only reason employees show up. While money is certainly a factor it is far from the only variable. I used to feel as you do because that is the business model I was taught. I spent 25 years in the auto biz where that thought process runs rampant and car salesmen have rightly earned the reputation they have, I saw it from the inside. I hated everything about that industry, I hated the way I was treated by management, the way I did whatever necessary to make a sale, and thus, hated going to work every day. Now that I'm out of the biz there is no amount of $$$ that will make me return...NONE. It's my opinion that if you treat your employees as transients then that's what you'll attract. I'm not naive enough to be believe that what I propose is easy, but I feel confident that employees will respond favorably to my approach.

For me, absolutely, CC: I don't want to impose any artificial barriers on anyone. I want "my" employees making as much money as humanly possible AND want them to feel appreciated. I feel that combination would be tough to beat. I know I wouldn't feel so inclined to grab from the register or feed my friends out the back door if it meant jeopardizing my position within such an organization. Once again, I know this may sound all rainbows and puppy dog tails, but I've lived the other side and want to do things differently.

I think I'm seeing double..............VP. I hope your right, the restaurant business is a whole different story. I may have had 25 out of 1000's of  employees that I had a lot of respect for, and felt they walked their talk. I hope your % is better, I've only been doing this for 30 years........Good luck my friend.....................Bill

   I understand where you're coming from, Lorna: sounds like you and I have worked for some of the same scheisters and it's made us skeptics. I want to change all of that. I don't think I'm reinventing the wheel. What I had in mind was giving them a piece of the pie right from the jump, not based on profits, but sales. No waiting until Christmas for a bonus: I get paid, you get paid.
   I understand there may be no upside for you established business owners to try what I propose, you're obviously doing something that already works. That's why I'm asking you experienced folks if it's doable at my Genesis. For the time being I'm thinking of being a small-scale operation, maybe an employee or two. But if I decided to grow the business, the mindset would be passed down as a company mantra and new hires would know that I'll "walk the walk". If I'm going to do it, I would think it would be easiest from day one.

I do appreciate the feedback, Billy. Forgive me if I come off sounding like I know more than established business owners like yourself. Not my intent.

If you think you can do it...it is your business to make it happen. If you meltdown at the thought of how bad everyone is...you are going to have a hell of a time doing anything in life or business. Easier to work hard  stay positive fly right and gt it done. No wasted energy.

VP, Don't get me wrong, I wish you nothing but success. This is a very difficult business to succeed in, it takes special talents to be really successful and thrive.................When I say I wish you the best, I really mean it.......................Bill

Why don't you wait a bit and see how you do? You have bills to pay out of your sales. What happens if one of your appliances break down just as you are starting out? I can see a lot of thing potentially going wrong.  I've seen a lot of businesses that are just turning over money, have good sales and fold because they aren't making any profit or aren't quite making enough to pay the bills.  And if you have a problem being the Boss and having employees, then perhaps owning your own business isn't for you. As the boss you have to make tough decisions. Like firing someone who really needs the job because they can't show up for work because (insert excuse... usually someone else's "fault").

CCinNJ


Are tips involved in either one of the businesses?

Venus Paw? 318?

 
No tips CC.  Quickservice - if you called it in, everything is cooked to order to insure consistent quality at every experience.

BillyB


318, think of you being Jerry Maguire, and all of your employees being (SHOW ME THE MONEY) I give a Christmas bonus, as a thank you to my long time employees, the newer employees get a $50 or $100 because I don't like to think I have enough of everything and someone who works for me can't afford gifts for their family. The incentive should get them involved in the success and quality, service, and sanitation of the operation. I have one manager that gets a $200 bonus once a month just for a 100% quality performance review. I want to pay for performance, show me a quality performance, I'll show you the money. Don't be fooled, the people are only there for one reason.......MONEY............screw all the rest of the bull****.......Quality food+Quality service=Better profits and success.....Show me the money, it took me along time to figure that out. there is no heart and soul in this business, just greedy hands wanting, without giving.................

 
Thanks Billy
 
I didn't see that movie but understand that money makes the world go around.  Not for every single thing, but go broke and see how many friends you still have.
 
I am a fool for quality.  In my early days of research I had a few rules that I have worked out now, but, they were: serve cold/below expected quality food - fired, mean to our guest - fired, anything goes out of this kitchen thats not perfect - fired.  Thats how serious I am about quality.  Now I have changed things a bit and put a few systems in place to insure i'm not the only one working. LOL.  I like to think of it like the first night with a woman, if you don't do it good - she wont be back and will tell her friends you aint s***.   Do it good and...well...you get my point.
 
Out of all of the restaurants in my area I have 3 that I go to b/c the quality is always there [Razzoos, Nizza Pizza, Rosas Cafe].  Mess up once and you get no more money from me.  I'm not really a jack***, but have spent thousands of dollars at restaurants to get cold BS only to complain all the way home and piss my wife off.  No more, do it right or lose me as a customer.  I have this same attitude when it comes to my place.  I cant mess up once b/c I may lose you as a customer. I know this will be a major challenge but I would rather you wait 7-8 minutes to get hot quality food than serve you cold inconsistent food.
 
I saved, researched, planned, and work very hard to stay away from the one that didn't make it pile and know employees wont have the same drive, passion for excellence, desire, motivation, and on and on that I have for this place.  I have to create it with incentives that I don't mind giving. The employees are the ones who create the customer experience and keep the wheels turning.  I think its better to maintain a car rather than run it into the ground and just buy a new one, the same as we do with the equipment we depend on.  I know this wont be exactly as I plan but would rather have a standard in place then just free flow all willy nilly hoping for the best.  As far as quality food, performance, service, and sanitation - its a must.  I have to have that or you are working against everything we stand for; sorta like the movie 300.
 
The company I work for does about 8 million a month with 140 employees and after playing the economy card last year they didn't retro raises this year while the managers and corporate got raises and bonuses each quarter.  I think thats bull, but thats me.  I just want to be a different type of company and thats 1 piece of my puzzle. 
 
disclaimer for anyone wanting to rip me a new one: i have never owned a restaurant and know there are many things I will only learn from experience; the beauty of being self employed is you can change what isn't working and don't what does.
 
enough bacardi- 
 
318

Money is a great extrinsic motivator, but you must find the intrinsic ones. As the excar salesman said he would not go back to it for all the money in the world. Nor would someone want to spend a long time with you if it was just for the money. I am just researching a restaurant as a venture at the moment, but people in any business are the same.   We all have our needs(maslow's), I know that I will bend over backwards for someone if the truly care, but if I am just a laborer to that manager or owner sure I will be there, but you won't get the A game. 
PS Hello Board this is my first post. 
 

I agree. 
 
Even at the company I work for now I treat it as Im a partner or something.  Every day on time, never slack [sometimes when Im really tired I may stop working 2-3 minutes early], always willing to work overtime or on special projects, like I help start it or something.  But let them tell me we cant pay you this time..
 
PS: welcome caver!