Financial and Non-financial Services
FCL believes that the most valuable reward that can be given to employees is money. In Le Boeuf’s book, he said “Companies that give monetary rewards based on performance gets performance”. For new consultants at FCL, they get a total of $28,000 in one year and the managing director gets $80,000 in a year. Consultants in FCL earn only a total of more than $100,000 a year if their performance is high. The wage salary of FCL is based on commission structure.
Commission is given on top of their basic pay. So, in order for consultants to earn more, they need to work harder and must get good performance evaluation results. However, the benefits of the consultants do not end in receiving commission – this is just the start of the monetary offers of the company to its employees. When a person becomes a manager, the incentive he gets increases. The team leaders of FCL receive rewards when they are doing well.
First is, they get a 10-13% of profit share in their shop automatically. This is given on top of their commission. In addition, they are also allowed to buy of up to 20% of the profit of the business which is called Business Ownership Scheme (BOS). This is one way to motivate employees to let them run their shops as their own. This concept has been their philosophy which is “We believe that each individual has the opportunity to own part of their success.
This happens through profit-share or our Business Ownership Scheme (BOS), and ownership means we see the business that we own part of and work in as our business – not just FCL’s business”. Le Boeuf also added in his book that rewards in monetary form is just one way to motivate people. Another important ways is through recognition of people who are doing excellent jobs. It has been an integral part of the company’s success is recognition which praises and honours employees who are doing exemplary actions in their fields.
The categories include: Most Profitable Business, Consultant of the Year, New Consultant of the Year, Most Productive Business, Most Improved Business, and Managing Director’s Award for Outstanding Achievement, the Profit Club and Achiever’s Club. To aid the employees in achieving their goals, there are trainings provided to consultants which are designed to suit their needs. Another important strategy of FCL is the personal and developmental growth of each employee in the organization. In addition, promotion is merit-based and vacant positions are filled with employees which come from within the company.