Team toolkitPIP Builder
Build a Performance Incentive Plan for every role in your company, then check that the whole thing is in line before you announce it.
Your break-even sales
Add up the bills you pay every month no matter what. Use a three-month average from your statements.
How to figure your gross margin
- Get your sales for an average month. Look for “Total Income” on your Profit & Loss (P&L). No P&L? Add up 3 months of customer deposits on your bank statements and divide by 3.
- Get what it cost to deliver those sales. Look for “Cost of Goods Sold” on your P&L: materials, supplies, products you resell, subcontractors. Don’t count rent or payroll.
- Subtract: sales − cost = what you keep.
- Divide what you keep by your sales, then × 100. That’s your gross margin. Enter it above.
Example: $140,000 sales − $98,000 cost = $42,000 kept. $42,000 ÷ $140,000 = 0.30 × 100 = 30%. You keep 30¢ of every $1 you sell.
What you reward
Three things, no more. Tap an idea to drop it in, or type your own.
Make it real money
Aim for 15–20% of their yearly pay. Under 10% is gas money and won’t change behavior.
Hours a year: 2,080 = 40 hrs × 52 weeks (full-time). Part-time? Use their weekly hours × 52.
Paid monthly or quarterly as earned.
The most one person in this role can get from the team pot.
Keep score out loud
Late once and trust is gone. Can’t afford it? Shrink the reward, never skip the date.
Company check
If everyone hits everything at today’s sales, here’s what it costs you, and whether it’s in line.
| Role | People | Base pay / yr each | Measures / yr each | Profit share / yr each | Possible / yr each | Role total / yr |
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