IN A REGRESSION ANALYSIS of compensation for club general managers nationwide, total operating revenue and the GM’s tenure explained 87% of the variation in total compensation. Other variables including initiation fees, full time equivalent employee count and cost of living index can be added to explain
HIRING THE RIGHT individuals for our clubs has always been a challenge. Not only do we need to hire qualified individuals capable of “doing the job,” we must also find the individuals with the right “fit” for our club and the specific operations in which they
AND WHAT’S THE NEED of having one? The budget-planning period is just around the corner and soon you’ll be building your next business plan. Effective compensation policies are derived from the strategic elements of your club’s overarching compensation philosophy. It is a key component of your
STAFF COMPENSATION is the largest expense in any club. In fact, industry data shows that at the median, 55 percent of a club’s total revenue goes to payroll. While distribution of labor expense among the club’s departments does vary somewhat based on club type, food
Q: We have an exceptional general manager who we’d like to keep. How do we determine whether he’s being compensated appropriately relative to what other clubs are paying? A: Retention of talented management is critical with the compensation package central to that effort. When it comes to
IN LARGER INDUSTRIES—the airline industry or automobile manufacturing for example—major players exist. Because of their size, these bigger companies have influence and the ability to drive change. The club industry, on the other hand, is highly fragmented. Made up of thousands of individual clubs, in
A major portion of a club’s total operating revenue goes to payroll—about 55 percent at the median. Extensive analysis of club industry data has provided valuable insight into how that money is distributed and what drives the particulars of salaries, benefits and bonuses for the
Q What are the nonmonetary top trends in GM compensation packages? A Over the years, there has been a sea change in compensation for private club general managers. During the 70s, 80s and 90s, GM salaries were typically lower, though many may have included a variety of
Dear Club Members, NCA would like to encourage you to participate in the National Golf Course Owners Association (NGCOA) 2010 Compensation & Benefits Survey. Since the last study in 2008, dramatic economic changes may have forced some private clubs to make some difficult choices with
Most people are familiar with the “golden parachute” concept—the clause(s) in a senior executive’s contract calling for a range of benefits and payouts should an organization, for whatever reason, want that executive to leave. But what happens in the reverse situation? What happens when the