How To Run A Leaner Team Using The Incentive Simulator

Who This Is For

This is for managers who want to maintain revenue with fewer people. Use this to test how incentives can improve efficiency and reduce labor needs.

This is about improving efficiency, not cutting your team immediately.

How It Will Help

• Set up a lean team scenario
• See if work can be done with fewer hours
• Check if the company improves margin
• Adjust your setup with simple changes

Start Here

1. Open the Summary tab.

2. Only change the yellow fields.

Step 1: Enter Starting Numbers

Do not overthink this.
Use these values:

• Productivity → 12%
• Revenue Conversion → 65%
• Bonus Split → slightly company-weighted (example: 60 / 10 / 30)

This setup assumes you will improve efficiency, not add more work.
This setup focuses on doing the same work with fewer hours, not adding more jobs.

Why These Numbers

These are starting values.
They assume:

• crews work more efficiently
• not all saved time becomes new work
• the company keeps more of the benefit

You will adjust from here.

Step 2: Scroll To Results

Scroll to the Incentive Program section.
Find these two numbers:

• Company Net Benefit
• Team Bonus Payout

Ignore everything else.

Step 3: Check If It Works

Ask two questions.

Question 1: Is the Company Net Benefit clearly higher than before?

• No → reduce crew share or lower productivity
• Yes → go to next question

Question 2: Would a crew still care about this bonus?

• No → increase crew share slightly
• Yes → you are close

If bonuses get too small, performance will drop.

Step 4: Check Your Workload Assumption

This step is important.
Ask yourself:

Are we trying to reduce labor instead of taking on more work?

• Yes → keep revenue conversion lower
• No → you may be using the wrong guide

If you are unsure, lower this number and test again.

Step 5: Improve Efficiency

Now test small changes.
Only change one thing at a time.

Try:

• Increase productivity from 12% → 14%
• Reduce crew share slightly

After each change:

• check the same two numbers again

Step 6: What You Are Looking For

You are trying to find this balance:

• maintain the same level of output
• fewer labor hours needed
• higher company margin

When all three are true:
👉 you have a strong starting setup

What This Means

If this works:

• you can do the same work with fewer people
• you reduce labor cost
• you improve profitability

These are estimates. Actual results depend on how efficiently work is scheduled and managed.

This only works if teams can consistently improve efficiency. This usually happens over time through better efficiency or slower hiring.

When To Stop

Stop when:

• profit improves
• bonuses still feel meaningful
• your inputs feel realistic

You are not locking anything in.
This is your starting point.

Common Mistakes

• Setting revenue conversion too high
• Making bonuses too small to motivate
• Changing too many inputs at once
• Expecting immediate labor reduction

Troubleshooting

Problem: Profit is not improving
→ Reduce crew share or lower revenue conversion

Problem: Bonuses are too small
→ Increase crew share slightly

Problem: Results feel unrealistic
→ Lower productivity or test smaller changes