blinds to go case
Problem Statement
If Blinds To Go staffing stores still lack of staff for the expansion plan, it is difficult for the company to fill current store requirements for the additional 50 stores per year.
Analysis
The BTG have problems of a variation of the commission-based compensation plan, so they are difficult to keep high-level associates, assistants and managers, they face to high staff turnover each year and lack of the attraction to recruit new members. In order to analyze BTG’s problems, they must look at their compensation structure, recruiting methods, and the condition of staff turnover.
Compensation structure
In 1996, the Shillers decided to change the compensation system from full commission to salary, and her intention was to attract more recruits, make sales associates less entrepreneurial and more customer-service focused, but the best commission-based people did not like it and left. However, sales declined between 10% to 30% in both new and existing stores from 1996 to 1997. A variation of the commission-based compensation plan was back in 1998, and store sales improved. Next, a plan for store employees was implemented along with a sales award and recognition program, and all full-time sales associates were made partners and given shares in the company. In addition, there was another concern that a commission-based compensation structure would not work in the U.S., because the workers prefer a straight wage or salary. Finally, senior management believed that sales managers had to be properly motivated and provided them with a combination of store sales commission and opportunities for rapid advancement in the growing organization.
Recruiting methods
In order to attract quality retail sales candidates, BTG had tried several recruiting methods to varying degrees of success, such as employee referral, Internet sourcing, DSM compensation readjustment, BTG retail recruiters, newspaper advertising, and store generated leads. As a
If Blinds To Go staffing stores still lack of staff for the expansion plan, it is difficult for the company to fill current store requirements for the additional 50 stores per year.
Analysis
The BTG have problems of a variation of the commission-based compensation plan, so they are difficult to keep high-level associates, assistants and managers, they face to high staff turnover each year and lack of the attraction to recruit new members. In order to analyze BTG’s problems, they must look at their compensation structure, recruiting methods, and the condition of staff turnover.
Compensation structure
In 1996, the Shillers decided to change the compensation system from full commission to salary, and her intention was to attract more recruits, make sales associates less entrepreneurial and more customer-service focused, but the best commission-based people did not like it and left. However, sales declined between 10% to 30% in both new and existing stores from 1996 to 1997. A variation of the commission-based compensation plan was back in 1998, and store sales improved. Next, a plan for store employees was implemented along with a sales award and recognition program, and all full-time sales associates were made partners and given shares in the company. In addition, there was another concern that a commission-based compensation structure would not work in the U.S., because the workers prefer a straight wage or salary. Finally, senior management believed that sales managers had to be properly motivated and provided them with a combination of store sales commission and opportunities for rapid advancement in the growing organization.
Recruiting methods
In order to attract quality retail sales candidates, BTG had tried several recruiting methods to varying degrees of success, such as employee referral, Internet sourcing, DSM compensation readjustment, BTG retail recruiters, newspaper advertising, and store generated leads. As a