The business I decided to analyze is a small chain restaurant in Oregon the specializes in mid tier seafood cuisine and offers well prepared dishes at an affordable cost.
The business is devised of 4 different pay structure tiers. At the top of the chain we have the owner (John McGrath). Although John is retired from being involved in day to day operations, he still has a say in the direction of the company. Beneath him is a regional manager who oversees all locations and reports directly to the owner.
The 2nd tier down we have our store general managers (GM’s). GM’s are responsible overseeing all operations of their designated locations. GM’s control hiring and firing, maintaining stock and financials. These individuals report directly to the Regional manager.
The middle tier is composed of team leads and bartenders. Team leaders are responsible for managing day to day activity, and setting up schedules for employees. Bartenders share similar responsibility by running the bar independently. Bartenders are also responsible for ordering alcohol and keeping their inventory stocked and up to date.
The last tier is the kitchen and waiting staff. These are generally entry level positions but also offer room to grow. Employees in the pay grade are able to work more shifts and get paid more if they are able to demonstrate skill and proficiency in their work.
My recommendation would be to pay every category on a job based pay structure, with the exception of the top tier. The high end of the chain of command demonstrates a more unique set of skills that shape the organization and determine the direction of the business. These individuals should be incentivized to perform above and beyond their “job duties” and constantly seek new ways to improve operations, promotions and financial management. The progress directly related to their work is also easy to identify (bringing on new projects, implementing new business practices, etc.) The rest of the business should be compensated on a job based pay structure. Each job has a clear and easy to understand description of what is expected of them. Operations are already laid out for them, their main task is to maintain the system. This doesn’t require as much creative or complex decision making skill.
