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Bonus program and Incentive Programs

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  • Bonus program and Incentive Programs

    I keep seeing everyone talk about how they get bonus's anyone mind sharing what kind? Has anyone got a lease up bonus for new construction
    We are building a new facility and would love some advice on bonusing.

  • #2
    My bonus come at different times except for Christmas. When I have hit a certain peak with numbers I get a bonus. I have set records here for 3 years and am now up against my own numbers. If you have a new facility and have hired a qualified experienced manager(s) then they know what their job is and a bonus isn't necessarily deserved unless you give thresholds to hit and they are met. I have never felt doing my job deserved a bonus but to go above and beyond the norm, especially when it is unexpected, giving a bonus instills respect and devotion to the job and the owner. Money is never my only motivation but it doesn't hurt. I think it also depends on, with a new facility, just how great the marketplace is there and how good a job was done to market the facility.
    "Never let the inmates run the asylum!"

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    • #3
      I get a monthly bonus of 1% of the sales for the month. I get January's in February, Feb in Mar,, and so on. We don't sell any retail items other than locks, and that's not very often, so it's based mostly off of rentals and any late payments I manage to collect during the month. I also get a bonus at Christmas. Like Pac, I'm my own competition. I'm very aware of what my numbers at any given time and am always trying to do better than the previous month. And the previous day. And the same month last year. You get the idea. Haha
      Too many freaks, not enough circuses.

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      • #4
        We do bonuses once a year for our managers. How we do it is set a top amount.. say $3k. We set forward a few objectives "sell insurance", "Bring variance down". That type of thing. If we feel the mangers have made their best effort at their site then we award them the full amount. I feel an engaged employer/boss/PM will understand the different markets each site is in. I dont feel that sticking an exact percentage amount on it is fair to a degree. We have markets that gross double what other markets do and they have the same size facilities. Its all about knowing your employees and understanding their roles and effort levels.

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        • #5
          Working for corporations, they give bonuses on many things. They would give me a minimum rental number per month then I would get about $14.00 per rental over the minimum goal. If I met the true goal and went over then it jumped to about $22.00 per rental bonus. Also received bonus on ancillary sales (Locks, boxes and packing supplies) with say minimum purchase of $200 for the month and got 2% over that minimum, and a bonus on a minimum of sales for selling insurance. Received yearly bonuses on how long we were employed with them.

          Where are you building? I'm presently unemployed and looking, but I'm in Central Florida.
          Tall Terri

          The customer's fantasy doesn't always match with our reality! http://www.selfstoragetalk.com/core/...ilies/cool.png

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          • #6
            For the company my wife and I are with, it's $10 per rental (regardless if we rent it or a relief manager rents it), 10% of all retail and 10% of the store's commission on U-Haul. Relief managers get $5 per rental, but no retail or U-Haul but they're paid a higher hourly rate than property managers. This is obviously motivation to get as many rentals and sales as possible, but there's some locations that do more than others. Here, we've averaged between $250-$350 a month in bonuses, whereas at our last store we averaged between $600-$800 a month in bonuses. Also, property managers are capped at their hourly rates, so we get a yearly "stipend" to make up for not getting a pay raise. Last year it was around $1,200. Don't know if relief managers get that because they can get raises and usually make $3-$4 more an hour than property managers

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            • #7
              We don't and didn't get during lease up, a rental bonus. In fact, until 3 years ago there was no bonus program. Now it's if you go over last years numbers, you get 5% of that amount split up between the employees once a quarter.
              An apple a day keeps ANYONE away if you throw it hard enough.

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              • #8
                If we can all do something. Let's separate out bonus and incentive. They are two VERY DIFFERENT THINGS. A bonus is something you didn't earn. There were no strings attached. It was given to you out of the goodness of anothers heart. Incentives are rewards that are worked for. You do X, you get Y. Think of the carrot and cart.

                Most of us here get a Bonus sometime in December and Incentives through out the year monthly or quarterly. There is no such thing as a rental bonus or revenue bonus. No those are things the owners through out and say work and you earn a something, usually money. That's an incentive.

                The above is a important difference that should be laid out.
                Now to get off the soap box.

                We have an incentive package based off revenue for a quarter. The numbers are a made from a meeting of the minds between ownership and managers. If I grow the business somewhere between 10.75% Y-o-Y I get 3/4 of 1% of the over all revenue. If and when I qualify for that I have several other factors that fall into place. These include: 15% of merchandise sold, net rentals over the quarter, accounts receivable less then 5%, rate variance between 1%-5%, Rent increases great then 97% overall over the last year and last personnel expenses. Often times we will through something else in like insurance conversions higher then 70% or a certain percentage of web reviews v move ins. Between these my bonus is somewhere between $3000-$4500 a quarter.
                Last edited by Advantage IT; 16th January 2017, 04:56 PM.
                Chasing Perfection to catch Excellence

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                • #9
                  My company offers a great incentive program. We get $10 for each rental of 100sqf and under and $15 for each rental over 100sqft. We also receive a percentage of each moving supply we sell as well as a percentage of what gross income we make monthly more than what we took in the previous year same month with a 3% increase factored in. Our incentives are paid monthly. The only negative was that I had great years the last 2 years and Obamacare killed me because I underestimated my earnings. I had to open a $5000 IRA to stop from paying a $3600 penalty. Oh well, you have a great year and you still pay for it in the end.

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                  • #10
                    I offer incentives to my staff every month - they change based on what each location is needing to improve on. I do a whole location incentive where if they hit a certain number of move in's they get X amount of $, hit a certain amount of income they get x amount of $, moving supplies etc. I also offer a % of commission if they upsell. So for example if the street rate is $50 per mth and they sell the unit at $60 per mth they get 25% of the difference. I do this for moving supplies, set up fees etc - anything that they are able to get more income on. My top sellers get anywhere between $500-$600 per month in extra money. I then get bonused on the gross for each of my stores each month. The more they make the more I make and the more the owners make. WIN WIN WIN I believe that unless you are measuring success you can't achieve success so they are always watching their move in numbers, income, moving supplies etc so they know where they need to be hustling in order to hit targets.

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                    • #11
                      My managers make 5% off their packaging supply sales, and they are very well compensated. However my reason for posting is to offer advice.

                      Years ago, I worked for a company that had, what looked like a great bonus program. Although there were other factors, it was mostly based on rental goals during their lease up phase. It was really good for a while, until they started budgeting not to pay out 100% of the bonuses.

                      Paying out less than 100% is very normal, and in most cases, expected. However I was putting in 60+ hours a week to fill an 800 unit facility in 6 months (you read that right). I was not meeting my numbers, I was blowing them out of the water.

                      They could not provide me with a credible reason not to pay me anything close to my entire bonus. They couldn't even explain how the other factors affected my bonus after their lease up goals were destroyed. I suspect that they threw an insufficient budget at it, and took some off my bonus to pay someone else's, and that's not right.

                      The point is that a bonus should motivate your staff, and that didn't happen in my case.

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