Lessons for studios
After observing things for the past couple weeks, I've started to form some strong opinions about things that studios can do to improve their businesses and prevent this kind of strife.
1. Stop paying incentive pay on single people. Instead, pay incentive at thresholds. i.e., something like flat of $35, plus $7 for every 5 people over 10 or something like that. We'll be updating our payroll calculator to account for this newfound belief. It's clear to me that per head incentive pay structures can spiral out of control quickly, and when you work to correct this, some people will not be able to see the reasoning why. I can see already Maile will have to again adjust her incentive pay when the studio is able to command a base of 15 to 20 people, and regularly starts bring in 25 people per class. That revenue will probably support an average pay of $50 per class, but not the $60 that it will lead to.
Unfortunately, it will probably again cause problems when she course corrects again.
2. Never apologize for adhering to the economic laws that all other businesses must adhere to. Use it as an opportunity to teach. Over-communicate about this kind of thing. In hindsight Maile learned she should have been far more communicative than she was.
3. You will never get the goodwill your instructors give you the day you open your doors. Unfortunate but true. I don't know what to do about this other than to know it as a reality.
4. Pay people differently. Different instructors are worth different amounts to a studio, and trying to keep everyone on the same incentive structure suggests an equality that doesn't actually exist within the market.
5. Set the expectation from the beginning that as you grow and learn, instructors should expect their pay to adjust accordingly. Business owners should never, ever, be penalized for learning new information as their businesses grow.
Lessons for Instructors
1. Be able to identify who your allies are, and treat them differently than you would treat your enemies. Maile had people refuse to talk to her before resigning, all because they forgot she's always been an ally. Some instructors picked up classes others dropped and are now their making hundreds more each month.
2. Not everyone is out to get you. I understand some people take advantage of yoga instructors, but not everyone does, and being able to know that some people actually want to help you, and identifying them, is as important as identifying the people that would do you harm.
3. Do Math. It's shocking to me that people are not tracking the pay they get for each and every class they teach. If you don't respect your own business, why should anyone else? It's just a few columns: Date | Class Name | Base Pay | Incentive | Total. The first step to improving something is to measure it. If you want to make more money, measure how much you are making for each and every class you teach, and keep it updated constantly. Patterns will emerge, I promise.
4. If you want to maximize your dollars per time spent, don't drop all your classes, only drop the low paying ones. Understand that business owners think in totals and averages. If they can make the totals and averages work, they'll probably be able to keep you happy and you'll be able to treat them with respect.
5. Understand that business is in fact a form of nourishment, and by disrespecting the business side of yoga, you are disrespecting yoga in the entirety. Business fosters empathy because it requires you to see how other people value you. Don't be scared of this, embrace it, and you'll be one of the most valuable people a studio owner works with.
