Tuesday, June 15, 2010

Eliminate tipping to individual servers

Dan Pink highlights the removal of commission sales with a higher flat salary. Would this approach increase sales at a restaurant if all the tips were pooled?

once commissions were no longer around, collaboration and commitment increased.

And then there's the experience of the companies' customers. When we buy, we often see the salesperson as an adversary with whom we're locked in a zero-sum battle. That sort of relationship, says Weinstein, is ultimately bad for business.

Ending commissions, he said, sent "a strong message to the staff: We're not just paying you for what you close in the next five minutes. We want you to be an agent for the customer rather than a salesperson."