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    How much dollar value should an employee add to my shop?

    Q: "I hired another employee to help run my small shop. My question is how much dollar value should one employee add to the shop? Is it three times their salary, five times their salary or more?"

    A: That's an interesting question, Kelly. I think your question is how much should you expect an employee to sell per hour? So the easy answer with that is take your sales for the last month, divide it by however many hours people worked in the store or how many hours you were open, or payroll, however you're gonna do it, and you'll get a benchmark of how much each employee sold in the month. Then divide that by number of hours they worked. And you'll get very specific.

    See also, For Retailers on the Edge of Adding Commission as Incentive

    Then I would certainly say you want to have at least that. I think so many retailers - small retailers - step over dollars to save pennies but I don't care what it costs you. If you have a well-trained employee that doesn't have to go through and demonstrate everything, they can bond with somebody, and they can engage them in such a way that the person is glad they met them, they are worth their weight in pay. So don't quibble on that. I think what you want to do is track what they're doing. Give them great training, not exposure. And then make sure that you are constantly monitoring that to increase it."

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