> INCENTIVES TO INSPIRE KEY TAKEAWAYS
Simple Incentives Drive Results. Straightforward bonus programs, like paying staff for upselling add-ons, effectively boost sales and employee earnings without in- creasing labor costs.
Track and Adjust for Success. Regularly monitor incentive programs to ensure ef- fectiveness, adjusting as needed to keep employees engaged and profits growing.
Transparency Is Essential. Clearly outline incentive policies in writing, have em- ployees sign off, and ensure all payouts — especially cash bonuses — are properly documented and reported.
Avoid Costly Pitfalls. Develop incentives that encourage positive behaviors without cutting corners or creating animosity, and ensure they align with profit goals and maintain fairness across staff roles.
bonus in cash, indicate that as well. For example, if their net pay for the period is $800, including a $25 bonus that was handed out as cash, the paystub should indicate that $775 was deposited into their bank account and $25 was distributed in cash. At the advice of his accountant, Rothe applies incentive pay to his employees’ regular paychecks as a bonus. He prefers this because it is easy to track “in case there are any account- ing questions later,” he says. A well-designed incentive program
MOVE OLD INVENTORY
If you have a glut of old containers, you can encourage your designers to use them by tagging the containers and paying $1 for each one the designers use when creating a designer’s choice arrangement, says Derrick Myers, PFCI, CPA, CFP, president of the accounting firm Crockett & Myers Associates. Keep track of how many containers a designer used by having them initial the tags and turn them in.
should end with the business making more money or saving money. Look at your margins and determine how much you can pay out while still making a profit. A good rule is to pay a portion or percentage of the increased revenue or savings. For example, if a salesperson’s average order is $100 and you offer $1 for every order over $125, you can increase your revenue by $24 for every $1 paid. If your processes are lackadaisical
or you don’t have a good way to track and measure performance, you leave yourself open to exploitation and profit loss. “Figure out how you are going to measure performance and make sure you have good methods to arrive at accurate numbers every month without fraud,” Drummond says. “Fraud is not common, but some people will reverse engineer your plan to figure out how to make the flaws in your point-of-sale system work to their advantage.”
Laurie Herrera is a contributing writer for Floral Management.
Scan to find more resources about employee incentives.
BEYOND BOUQUETS Rothe Florists & Flower Delivery in Philadelphia carries a variety of merchandise — from plushies and cards to balloons and chocolates — that its staff is incentivized to sell, earning the shop more revenue.
28 FLORAL MANAGEMENT | March/April 2025 |
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