Non-Financial Incentives vs. Commission for Retail Employees

2400 WordsAug 3, 201110 Pages
Running Title: Non-Financial Incentives vs. Commission for Retail Employees BACKGROUND Learning Express is a franchised educational toy store. We try to operate the store as a team with each of our employees possessing different skill sets (inventory knowledge, interpersonal skills, tasks). We also prefer that our more experienced staff take care of the checkout procedure. We also offer exceptional and more personalized customer service to encourage them to keep coming back as their toy needs grow and change. We offer customer special shopping opportunities if they spend a certain amount, sign up for our marketing list or join our Facebook page. We also offer many free or no cost events for their children such as holiday crafts,…show more content…
NFIs would be smaller which would hopefully still motivate the employees to sell but would not be large enough to encourage people from trying to make all the sales by themselves. RECOMMENDATION The recommendation is an alternative to a commission structure for retail employees by offering non-commission incentives such as: Low cost incentives Discounts on merchandise- We currently allow employees to take a 25% reduction on any purchases. We could offer 30% off their next multiple purchase up to a certain amount or 40% off one item. Company parties- This option could take several forms but it would be important to us to keep it low cost. One option may be to close early one night and have a potluck. Or have everyone over for a movie night with popcorn. Tickets/ gift cards- This option has been successful in the past with the employees and seems prudent to continue. We ask the employees from where they would like to receive gift cards. They can be purchased in small increments, which is appealing to us, the store owners. Employees can work to get more gift cards and save them up for bigger purchases. Some past favorites have been gas, groceries, coffee, and movie gift cards. Non- monetary incentives Wear jeans to work- The employees have “uniforms,” polo shirts with khaki pants. Jeans, for many, are more comfortable and relaxed feeling. We could even post a sign on the door that employees
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