Are you paying your management team market rates?
Retaining key management staff or even determining what is the current market based remuneration for key staff is a challenge for many venues and Boards due to the competition for experienced staff in the market and the complexity of offers, diversity and differing size of venues.
When determining the remuneration package for key managers, consideration should be given to:
- Their impact on the overall business performance
- Determining market based remuneration levels
- The percentage costs of senior management remuneration packages relative to the total wage cost. For example some venues would appear to pay excessive senior manager salaries yet their senior support structures are quite lean. Conversely some venues pay lower salaries to their top executives/senior managers and have larger and more costly support structures.
- The current labour market supply
Failure to undertake this could result in the loss of valuable management staff to other venues.
It should always be remembered that the true value of any remuneration package is not what you are paying now, but how much a venue would have to pay to replace the person, considering the skills required for each specific position.
PKF Lawler has recently undertaken a number of industry surveys in the metro market and regionally, and can provide your Board of Directors with an independent assessment of current remuneration rates and management structures.
If you would like to discuss how PKF Lawler could assist your venue please contact Peter McLean on 0425 266 120 or John Tully on 0418 267 029 or visit us at stand 113 at the AGE to discuss in more detail.