Question: Edwards, C. (2000). COMPENSATION A tool with a competitive edge. (Cover story). ID, 36(2), 38. This article discusses how companies can use compensation as a
Edwards, C. (2000). COMPENSATION A tool with a competitive edge. (Cover story). ID, 36(2), 38. This article discusses how companies can use compensation as a competitive tool to devise effective, win-win compensation strategies that enable them to attract, motivate and retain good employees without sacrificing business growth and profitability. In the restaurant industry, retention of employees in the supply chain is essential to avoid any disruptions. The author describes how compensation is used by some companies to maximize the performance of a normal warehouse worker and the ones that drive and operate special machinery. For example, Labatt Food Service of San Antonio, Texas, tracks warehouse employee productivity through its sophisticated radio-frequency program and ties the results directly into its compensation system. Weekly productivity rates in key performance categories (e.g., total cases pulled, and errors made) are posted in the warehouse, and employees can increase their pay by hitting certain goals. Labatt uses a similar incentive-based compensation system for drivers. It is the theory of Edwards, C. (2000), that when foodservice distributors discuss compensation, there are two factors that are most commonly present, retention and turnover. The Executive Compensation Survey Report suggests that Distribution Sales Reps (DSR)'s turnover averaged 16.4 percent
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