Tim, who always meets his sales quotas, decides to ask for a higher salary.
Charlie is caught off guard – the only performance indicators he has in place are sales targets.
He asks another dealer for advice, who expresses surprise at how high Tim’s base salary already is.
The two owners then call other car yards to check the industry standard.
Charlie apologises to Tim for the lack of performance indicators and explains his base salary is already higher than average.
If Tim wants a raise, Charlie can find him extra responsibilities, such as managing junior sales staff or sourcing new product lines.
Tim agrees, and together they create benchmarks to justify a future pay rise.