• The objectives of a compensation program are to attract and keep good employees, motivate them to undertake activities consistent with the retailer’s objectives, and reward them for their effort.
• In developing a compensation program, the store manager must strike a balance between controlling labor costs and providing enough compensation to keep high-quality employees.
• A compensation plan is most effective for motivating and retaining employees when the employees feel that
the plan is fair and that their compensation is related
to their efforts