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Sample page from Transforming Your Business into a Multi-Tutor Organization (page 13)

Tutor Pay Scale:
How much you pay your tutors is pretty much a factor of what competing organizations are paying. If you are trying to hire the same tutors as other organizations, you will have to offer a competitive wage.
For instance, a tutoring Academy may pay their tutors $15/hour, while an in-home tutoring company may pay $20/hour to compensate tutors for the extra time spent traveling to the student’s home.

Whatever you choose to pay your tutors, you would be well advised to build in a bonus structure or performance pay. For example, instead of paying your tutors a straight $18/hour, you may want to pay them $16 per hour plus a $2/hour bonus at the end of the school year, to reward them for their commitment. This will hopefully reduce the number of tutors quitting mid-year, which creates real problems for you, the manager who has to pacify the student’s parents and find a replacement tutor as quickly as possible.

You may also want to create two or more wage levels among your tutors, so there is a career path they can aspire to. Here is a suggested wage table that you could use or modify to suit your particular situation:
Tutor Trainee… $14/hour
Full Tutor… $16/hour
Master Tutor… $18/hour
Supervisor… $22/hour

In the above scenario, a new tutor could be hired as a Tutor Trainee. After six months of trouble-free tutoring, he/she could be elevated to the level of Full Tutor. After a full year of excellent service the Full Tutor could, at your discretion, be elevated to the level of Master Tutor. And if that Master Tutor shows promise as a potential manager, he/she could be elevated to the level of Supervisor if one is needed in the future.

Whatever your pay scale, try to keep it relatively simple, while at the same time giving your tutors something to aspire to if they do a really good job. If you are successful at this, it will help you to retain your best tutors as long as possible.

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