Tuesday, February 27, 2007

Commission Systems for Employees

Commission, (incentive) systems work very well in environments where the employee has a great deal of control over the rate of production, based upon his ability to work harder, smarter, longer or faster. If you have a sizeable Planet Antares vending, you would be required to hire employees to help you out with your vending route. These employees can be paid on a salary basis or on a commission basis. There are some employees that are paid using both systems.

Commission System should increase productivity
If you have a route driver for your Planet Antares vending business, and he is paid on a commission basis, he would know that the harder he works the more he will earn. The route driver should then learn how to fill and clean the Planet Antares vending machines as quickly as possible. This will be an easy task for the route driver since the vending machine is designed in such a way that allows for easy loading and cleaning. A route driver that is working on commission should also reduce the amount of time spent at each location, with the hope that he will have more time to service more machines and thus, collect more money each day. Up to this point, a commission system is a win-win situation for you and the route person. In this situation, the employee can earn more commissions and the company can earn more profit. A survey that was conducted revealed that most operators pay drivers some type of incentive.

Downsides of commission systems
There can be several downsides to commission systems as well. Since a route driver would want to service more vending machines, he may decide to drive too fast; perform less than 100 percent of the machine sanitation requirements; ignore simple mechanical procedures, such as removing a paper clip from a coin acceptor; or he may choose not take the time to coin test a machine after filling it. These conditions can easily interfere with the effectiveness of a commission system.

Pay plan has no bearing on schedule
A commission system, in and of itself, will not teach a route person how to schedule his route. The key to improving the route productivity of your Planet Antares vending business is to schedule the route person to service a vending machine only after the machine has made enough sales to profitably justify the cost of service.

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