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Roll With the Punches and Come Up Smiling by Tom Callos Choosing the Best Membership for Success Martial Arts Is About Expression by John Graden Ten Ways To Appreciate Your Staff by Rob Colasanti Extraordinary Marketing Newsletter Classics by Stephen Oliver Five Ways To Compensate a Program Director by Rob Colasanti Self-Defense Myths by Bill Kipp What To Do When You Need the Phone to Ring by Tom Callos Why Should You Use A Billing Company Do You Over Deliver? by Rob Colasanti Improve Your Retention With These Professionally Written Articles For Your School Newsletter- What you should know before you sign a lease! What To Do If Your Prospect Appointment Does Not Show! |
Looking for some fresh ideas on how to compensate a program director? The first step is to find out how much the prospective employee needs to earn. A dad with three kids and a wife has much different needs than a twenty-one year old bachelor. Second, find out how much they want to earn. In other words, what are their financial goals? Knowing these two important facts will help you determine if you can afford to hire the individual and how to best structure their compensation plan so it's a win-win. Here are five popular methods of compensation for you to consider. 1. The Volunteer Method If you're just getting started or simply can not afford to hire a salaried program director, then I suggest you look for a volunteer. A leadership team member, relative, student, or parent of one of your students could work. The idea is to have them help out on a short-term, part time basis, while you develop enough cash flow to hire an employee to fill this critically important position. 2. The Commission Only Method A risk free and affordable way to begin compensating a part time program director is by paying them a commission for each enrollment they generate. In this case, you only end up paying for results and you're paying for them with the revenue the program director creates. 3. The Base Salary with Bonus Method This method works well for a truly dedicated part time or full time program director. Provide them with an hourly wage that is fair based upon their talents, devotion, needs, and the average income in your area. This will comprise their base salary. Then, give them a bonus for each new student they enroll. Twenty to forty dollars per enrollment is the norm. 4. The Enrollment Amount, Minus Base Salary Method This method works great for compensating a full time program director in an established school. Start by guaranteeing the employee a monthly base salary. Whatever the amount is it should be enough to cover their monthly expenses. So even if the school has a bad month they will never earn less than their base. At month's end, multiply each of their new enrollments by a predetermined dollar amount. Then, subtract their base salary from their enrollment dollar amount to determine their bonus. Here's an example: Let's say your program director's base salary is $2,000 per month, he accrues $100 for each new enrollment, and he enrolled thirty new students during a particular month. You would take their base salary of $2,000 and subtract it from an enrollment figure of $3,000. Using this example, the program director will walk away with a $1,000 bonus check on top of their base salary. 5. The Percentage Method This method can become a bit complex. But the basic idea is to create a compensation plan that does not limit the program director's financial growth, yet gives the school the maximum amount of leverage when it comes to paying for performance. The first step is to determine how much of a salary you want to pay your program director after listening to their needs and wants. Next, assign a specific percentage to a combination of key areas relating to the school's current level of monthly performance that when added up equal the amount of salary you want to pay. These areas could include product sales, testing fees, collected tuition, contract amount written, etc. To make matters simple some employers choose to base their program director's salary solely on a percentage of the total monthly gross. Either way, if the school slows or grows, the program director's salary adjusts proportionately. This method places a heavy emphasis on school-wide involvement and strong performance. While there are certainly other methods for compensating program directors these five are the most common. Keep in mind that they do not include health or dental insurance, 401K contributions, or paid vacation time though you'll want to use extras such as these as negotiation tools. Go get 'em! |
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