Crafting Compensation Structures for Team Alignment and Studio Growth

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Compensation structures go beyond just salary; they are crucial in shaping team culture, aligning priorities, and driving growth within your studio. In a recent BFS Live Case Study, Evan Lindsay, a MADabolic franchisee, shared his strategies for compensation. He demonstrated how a well-thought-out model can encourage growth and cultivate a loyal, motivated team. Here’s how you can align your compensation strategy with business success and develop a studio team that is fully committed to your goals.

1. Build a Compensation Model That Grows with Your Studio

The key to a successful compensation structure is simplicity and alignment with your studio’s goals. Evan’s model offers clear, growth-based incentives for roles from part-time trainers to full-time coaches, linking salaries to studio revenue. As revenue increases, so do earning opportunities for staff, ensuring everyone is motivated to contribute to growth. Have you considered a growth-tied compensation model in your studio? When your team members see that their earnings can increase alongside the studio’s success, they become more invested. Start by identifying key metrics (like revenue or membership growth) that directly reflect your studio’s performance, and structure rewards that give staff a sense of ownership and pride in your shared achievements.

2. Implement Flexible, Results-Driven Roles

In Evan’s studio, roles are designed with flexibility and results in mind. His General Managers, for instance, have the freedom to self-regulate their hours, with the focus on outcomes rather than time logged. Evan’s team operates on a net auto-pay growth model, starting with smaller incentives and scaling as they progress, ensuring that compensation and expectations grow together.

As you consider this model, think about ways to offer flexibility that balances autonomy with accountability. Maybe it’s unlimited PTO, where staff can adjust schedules as long as they’re meeting targets, or perhaps it’s performance incentives tied to measurable outcomes. Encouraging full-time commitment with flexible scheduling creates a motivated, well-balanced team, and adjusting compensation as responsibilities grow gives staff room to thrive.

"When upping PTO and other related benefits, a significant amount (78%) of mid-sized businesses surveyed reported a boost in employee morale and retention rates."  Bank of America, 2024 Business Owner Report.

3. Hire Candidates Who Fit Your Culture

Finding the right talent for your studio is about more than just filling roles; it's about cultural alignment. Evan’s approach involves inviting applicants to studio workouts to connect with the product, while interviews focus on their goals to assess alignment with the mission. He also addresses limiting beliefs to help new hires see the role's long-term potential. By engaging candidates early in the studio environment, you can evaluate their skills and cultural fit. Always keep in mind that a clear, vision-driven hiring process fosters a passionate, committed team, ensuring a consistent experience across locations.

4. Foster a Positive Culture with Compensation and Leadership

Compensation is a powerful tool for fostering a positive culture where team members feel valued. At Evan's studios, this means cultivating a “tribal leadership” approach, which emphasizes mutual support, team motivation, and shared goals by setting clear targets, rewarding achievements, and prioritizing team happiness. To apply this in your studio, consider implementing a rewards system that values team achievements as much as individual contributions. Set achievable goals for the team and recognize milestones, whether through bonuses, team events, or public recognition. When staff feel their contributions make a meaningful impact, they’re more likely to stay committed to your studio for the long term.

Building a compensation structure that drives culture, alignment, and growth is one of the best investments you can make in your studio’s success. Lay the foundation for a thriving, loyal team by aligning pay with studio performance, creating flexible roles, and fostering a team-first culture. As Evan Lindsay’s approach demonstrates, compensation that ties directly to your studio’s mission and values can build a motivated team that’s as invested in your success as you are.

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