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MANAGEMENT for this winery. The bonuses will come in the form of checks, which will be hand-delivered on a weekly basis. In this program, the tasting room employees will literally "see" the effect of their hard work while advancing the overall mission of the winery. Incentive programs for employ- When awarding bonuses, it's best to do so intermittently. Photo: Thinkstock/ Medioimages/Photodisc on the next iconic vintage; som- meliers are focused on the sale of the next first-growth Bordeaux. It is unknown when or if the previously mentioned conditioning will occur. Constant reinforcement eliminates challenge and is, therefore, boring. A lack of reinforcement can result in meeting minimal performance standards and is, therefore, boring. Semi-frequent application of incen- tives boosts productivity and leads to continuous accomplishment. As a winery consultant, I'm in the process of assisting with the production and service plans for a winery start-up in Oregon. This operation does not intend to become a large-production brand, so the focus of its tasting room program is exceptional service and developing the wine club. As such, servers will receive bonuses for the number of cases sold (tracked by the POS system) and the number of additions to the wine club. We chose these indicators because a case sale is considered to be loosely tied to quality of ser- vice, and development of the wine club is one of the primary goals WWW.VWM-ONLINE.COM ees are similar to advertising pro- grams for customers: The goal for the company is to maintain a con- stant presence in the target's mind. A one-time incentive in the form of a pay increase, unless notice- ably significant, can become part of a direct-deposit pathway into a "black hole" of personal finance. A commission check handed directly to the employee provides tangible proof of that person's hard work. Similarly, an unexpected gift of an iPad will command a prominent position in the home – and there- fore, life – of the employee every day for years; it will become a con- stant reminder of that person's pos- itive employment status. TRAINING AS INCENTIVE Additional training serves as an integral component of an incen- tive program. The benefits of utiliz- ing training incentives are twofold because (1) It is a direct employee benefit which contributes to future earning potential; and (2) It allows the company to better fulfill its mis- sion. If the goal of the tasting room is sales volume, the incentive may be a percentage of an individual's gross sales PLUS additional training to improve the employee's sales technique. If the goal is exceptional ser- vice, the incentive may be tied to customer evaluations PLUS the opportunity to witness exceptional wine service at other wineries or restaurants. If the goal is develop- ment of the mailing list/case clubs, the incentive may be tied to the quantity of new subscribers PLUS complimentary enrollment in a competitor's wine club. In all situ- ations the employee experiences a direct benefit while also expanding his or her skill set. The winery ben- efits by increasing the employee's capability to fulfill its mission while gaining invaluable reconnaissance from competitors. The repercussions of an incen- tive program can include feelings of alienation and frustration by under- performing employees. Naturally, this is one of the primary goals in "managing-out" poor performers. However, from five years of col- lege teaching I learned it is most often the "A" students who argue the most fiercely about grades. My premise for de-escalating or pre- venting such encounters was to have expectations clearly written and explained. The stronger the connection between incentives and the winery's mission, job descrip- tions and evaluation process, the less likely it is to serve as a gos- sip topic among servers polishing glasses at the end of service. A proactive and strategic incen- tive program will allow the tasting room to recruit and maintain the best performers while better fulfilling its mission of sales and service. Paul Gospodarczyk is a certified sommelier, consulting winemaker and director of Today's Wine Pro- fessional (www.todayswinepro- fessional .com) , a web-based instructional group focused on training tasting room employees in sales and service. For five years he was the associate professor of enology/wine service at the Iowa Culinary Institute at Des Moines Area Community College. Comments? Please e-mail us at feedback@vwm-online.com. Knowledge is Power vwm-online.com/diy JAN - FEB 2012 VINEYARD & WINERY MANAGEMENT 125