Co-written by Ryan Mills
I began my business in 1996 out of the trunk of my car. In the almost three decades in this industry and three locations later, I’ve seen my share of shake-ups. Covid-19 has been no different. I know those early days were intense and really messed with all of us, but navigating the fallout post-Covid has been just as tricky.
If you’ve been scratching your head trying to figure out how to keep your team motivated and your business thriving these days, let me share my approach with you.
Shakedown Street
So, we all know the pandemic flipped everything upside down, right? The labor market went bonkers, and suddenly, finding reliable employees felt like searching for a needle in a haystack. Is the labor market really that different now? Is it a Gen Z issue? Is it a result of the current economic forces? Probably all three. After hiring people in the same town for over two decades, I’ve seen a major shift. The pandemic just made it more obvious. We had to rethink how to manage and motivate our team. Any way you dice it, employees were not what they used to be, and I needed to come up with some sort of fix.
The Fix is In
Here’s where things get interesting. I introduced a team-based commission structure and incentive-based pay system that essentially makes everyone accountable for their work. Now, they get paid like I do. No more coasting along!
Each shop has a specific daily sales goal. Hit that goal, and $100 goes into a commission pool. Every two weeks, we divide the pool based on hours worked, ensuring everyone gets a piece of the pie. There’s a guaranteed minimum, so even the slowest shop gets about a $1 per hour boost—no one gets left behind.
This not only incentivizes employees to meet sales targets but also ensures they are rewarded for their collective efforts. It’s a beautiful blend of teamwork and individual accountability. The results have been phenomenal, and the unexpected perks are off the charts:
Self-Motivation. Now, everyone has skin in the game. Employees have become their own toughest critics. Being late or slacking off can mean a dip in commission, so they stay on top of their game. It’s like giving them a superpower, and every two weeks, they get a fresh start. Messed up last time? No worries; there’s always another chance to get it right. It’s a continuous cycle of self-improvement.
Team Spirit. With everyone working towards the same goal, teamwork skyrockets. If someone is slacking, their coworkers aren’t having it. This friendly peer pressure ensures everyone pulls their own weight, as it directly impacts their paycheck. It’s amazing to see how this structure has fostered a collaborative environment.
Employee Transformation. Those employees who seemed like lost causes? You know, the ones you are ready to cut loose? Hold them accountable, and sometimes, they’ll surprise you in the best possible way. One of the most surprising and genuinely rewarding outcomes has been that the same employees that were previously struggling have unlocked a whole new world of potential. I’ve seen employees do a complete 180, transforming from ‘Why did I hire this person?’ to ‘Wow, they’re really killing it now!’ They’re harder on themselves than I could ever be. It’s like they’ve tapped into a new level of hustle, and it’s incredible to watch.
Cost Control. Linking pay to performance keeps labor costs in check without constantly upping hourly rates. I can reward my top performers without worrying about a bloated payroll.
Sweet Leaf
To sweeten the deal, I started offering direct commissions for selling branded merchandise. This means extra cash for employees who push those high-margin items.
For instance, if an employee sells a piece of branded merch, they get a 15 percent commission. Initially, this commission went into the general pool, but now, with a better tracking system, it goes straight to the individual. This has been a game-changer, giving employees extra incentive to push products that benefit the bottom line. Win-win.
The commission isn’t just about sales. It’s also tied to behavior. We operate on a system of half, full, or no commission based on behavior. Late without a good reason? Half commission. Major infractions? No commission. Yes, this is a tough-love approach, but it has made a world of difference in punctuality and has resulted in a more responsible crew.
The Final Cut
More than just a new pay structure, I enjoy going above and beyond for my team. Dental bills or car troubles—I’ve got your back if you’ve got mine. I know it’s clichè, but my crew are family. I believe in taking care of my people because they take care of my business.
There’s something magical about a system that brings out the best in people. When your team starts performing with integrity and a sense of responsibility, the whole operation runs smoother. It’s not just about doing a good job; it’s about doing the best job possible with pride and professionalism.
A little creative problem-solving has truly turned things around for us and created opportunities out of challenges. The pandemic highlighted the importance of collaboration in the workplace and across the industry. My vision for the future is a cannabis industry where everyone works together, sharing knowledge and resources to elevate the entire field. By fostering a collaborative environment, we can ensure that everyone—from the smallest startup to the biggest player—thrives.
