small business owners often run our own shows from top to bottom.  and some of us are lucky/successful/large enough to warrant the hiring of employees.

and lets face it: retail and design are very enticing fields for the lovers of fashion & style.  however, it’s no secret that the pay is usually low – pretty darn close to that minimum wage. 

times are tough all around – so how can you attract and keep the most fabulous employees – even when your business may be suffering due to the economy?

i’m sure there any many ideas out there – and i’d certainly love to hear them.  but i’ll start with my own experience in paying employees that was affordable, fair and at times – quite lucrative.

first of all – if you want the savvy, smart, stylish sales person- you’ll need to pony up.  and it will be worth it when they sell the bejeezus out of your merchandise and your clients sing her (or his!) praise.  after all, this person is representing your business.  you’re worth top dollar, right?

margins are tight  – so what’s the best way to manage your employee compensation?  I say a base hourly rate + commission.  I used to pay above minimum wage for my hourly rate (because otherwise, it just seems a little insulting).  commission was paid once they reached a particular sales goal.  For example, 5% of all sales over $$$.  this encourages their ambitions and allows you to cover your expenses.  and believe me – if your salesperson hits the jackpot – you’ll be excited because that means you had a killer day.  everyone wins!

a generous merchandise discount is essential as well (especially since many of us work in retail so we can get more clothes/shoes/jewelry/etc).

i’d love to hear about unique ways to compensate employees:  any ideas?