Compensation based on performance and salary raises
In today's episode, Mattias talks about bonuses and commissions and shares his insights regarding salary discussions.
Performance based compensation
Mattias starts by explaining the options to increase your base salary at iGoMoon. The salespeople, for instance, earn a commission (a certain percentage of the capital they generate), while the consultants get bonuses based on their performance on top of their salaries.
There actually is a whole bonus program in place that determines who is eligible for a bonus in what situation. It is based on the labor utilization rate, which is evaluated quarterly. Sometimes, team goals or company goals are set up where the whole team profits once those are reached. The reward could, e.g., be a particularly nice conference trip with the company.
Of course, raises are also a frequent topic at iGoMoon. The conversations around those usually occur during the growth calls twice per year. The first growth call meeting is about the role and the goals connected to it. Culture, behavior, and attitude are the main topics in the second meeting. If you did a good job during part 1 and 2 of the growth call, there should be a mutual understanding of the role and where it's going which will create a solid base for the salary discussion in the third and last meeting.
These discussions are some of the most important and some of the most challenging ones you need to have as a boss or a manager. It's important to manage expectations and align thoughts and ideas.
Preparing for salary negotiations
Also, be prepared that many people research salaries online and might look at statistics as a baseline for the negotiation. Mattias explains that one of the most important things in these discussions is to get people to recommit to the company's journey. Especially if you are running a smaller company with big ambitions you will realize that you'll need different kinds of people depending on where you are on your company's journey.
💡 EPISODE TAKE AWAY
Salary discussions are some of the most important and some of the most challenging ones you need to have as a boss or a manager. Make sure to create a mutual understanding of the role and where it's going, before starting to talk about salaries.
What kind of compensation policies does your business have?