HUMAN RESOURCES

One Day at a Time

Adopting a daily incentive plan to increase sales and reduce turnover.
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NOVEMBER 1990

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."

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Last updated: Nov 1, 1990




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