29 10 / 2011

Suddenly the staff is now the owner’s partner in the success or failure of a club or resort instead of just a passive bystander

Well it’s basically a system that pays for doing little more than coming to work and getting through the dayia It has nothing to do with the actual quantitative or qualitative performance a key staff person is able to produce, or not.ia And yet when I ask about specific goals and staff compensation, I find that in almost all cases, the staff is operating under what I term an -aoentitlement system-ar for compensation. I am amazed at the number of clubs and resorts I speak with who fall far short of creating expectations and accountabilities in their businesses for their key management personnel.ia

Business is about producing a -aobottom line-ar in accordance with the experience your members and guests want and are willing to pay for.ia Suddenly the key staff has a stake in the business outcomes and begins thinking and acting like an owner, like someone whose personal financial situation is dependent upon the results of the business, because it is! Suddenly the staff is now the owner’s partner in the success or failure of a club or resort instead of just a passive bystander. Key club personnel such as the general manager and department managers get paid a salary irrespective of the business outcomes.ia A portion of the performance based compensation should be based on specific departmental numbers, a portion on qualitative plans for improvements in specific departments, and a portion on the financial results for the overall club or resort. Whether the performance is outstanding or horrific, the pay is the same. It involves placing a significant portion of every general manager’s, sales person’s and department manager’s compensation on the quantitative and/or qualitative results of the business.

For sales positions such as membership directors, private event directors, and outing salespersons, 60% to 70% of the total compensation potential should be based on sales results relative to a predetermined sales plan.ia A financial plan that has is basis in the realities of the business and is not some -aopie in the sky-ar, unattainable goal. The following information on performance driven compensation is hazardous to anyone who does not want to be held accountable!