Compensation Programs
•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.