Creating a Performance Incentive Programme (PIP) 2017-03-25T10:32:28+13:00


Performance Incentive Programme (PIP) Example

We have designed these examples to give you a base by which you can build your very own PIP. These examples have worked very well for clients over the last 3 years, so we wanted to share them with you as a member.

Management Team

Position – Kitchen Manager and Restaurant/Café Manager

Incentive – Earn 1% of monthly Revenue (o.5% each- paid monthly)

Criteria – The following monthly benchmarks need to be achieved:

  • Meet Revenue target for the month (as per budget)
  • Meet monthly COG Target (as per budget)
  • Meet monthly Operational Wage Target (as per budget)




Budget Revenue $100,000                                          Actual $110,000

COG Target 28%                                                            Actual 27.8

Operational Wage Target 30%                                   Actual OWT 29.7%

All criteria met                                                               PIP $1,100

Each                                                                                 $550




Position – All team members (excluding Managers in a PIP??)

Incentive – Earn a share of 1% of weekly sales

Criteria – The following weekly benchmarks need to be achieved:

  • Meet Revenue target for the week
  • Average Sale per table


Budget Revenue $25,000                                             Actual $27,000

Average Sale Target $45 PP                                        Actual $47 PP

All criteria met                                                               PIP $270

Total number of hours                                                 270

Hourly Rate PIP                                                              $1

Individual works 40 hours                                            Weekly PIP $40