Adopting a daily incentive plan to increase sales and reduce turnover.
Distant goals and deferred rewards can result in disillusioned employees. That's why at Seattle's Pacific Supply Co., workers take their bonuses one day at a time.
Every day that the apartment-supply company books $5,500 in sales, all 11 employees receive an extra half hour's pay. If daily sales hit $15,000, everyone racks up another 6 hours' wages. The previous year's sales provide the basis for Pacific's bonus targets. Paid out once a month, the bonuses accrue daily and in a typical month amount to an extra 20 hours' salary for each employee.
Since Pacific scrapped a monthly incentive program for a daily one, in 1986, sales have increased by more than half; turnover has plummeted to only one resignation in three years; and daily sales targets are hit four out of five days a week. And company president Michael Go says that because all employees share in the spoils, "instead of fostering individualism, we get teamwork."