Tuesday, September 05, 2006

Commission Systems

Commission Systems need proper approach

Unsophisticated operators install route commission plans with the hope that it will provide a simple silver bullet solution to all the staffing problems. A commission system would sound like a perfect solution to them.

The level of an employee’s compensation is tied to the level of productive work that is done. So given the incentive, most people will be willing to work harder, faster and smarter. That is the reason why it is sometimes referred to as incentive compensation.

You will need to use a proper approach when it comes to implementing a commission system in your Antares vending business.

Commissions bring speed

Commission systems work very well in environments where the employee has a great deal of control over the rate of production. This should be based upon his ability to work harder and faster.

For example an Antares route person who is paid on commission basis knows that he will earn money if he is able to collect more money on his route. This is the reason why we say commissions bring speed.

System must motivate productivity

Based upon the incentive, a service person will learn how to fill and clean Antares vending machines quickly. The service person will also waste as little time as possible at each location, with the hope that he can end up servicing more vending machines and thus collect more money. The commission system would be a win-win situation for the Antares business owner and the route person. If the owner and the route person are one and the same person, then there is no need of a commission system. It has been reported that most drivers are paid a commission for their service.

Furthermore, a commission system, in and of itself, will not teach an Antares route person how to schedule his route. The real key to improving route productivity is scheduling the route person to service a machine only after the Antares vending machine has made enough sales to profitably justify the cost of the service.

Whatever system an Antares operator comes up with, it is most important to keep track of how much the drivers are making and how well the business meets its productivity goals.

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