The star-independent. [volume] (Harrisburg, Pa.) 1904-1917, 1915-02-11
FEBRUARY

ing concern. Is the cmploye to blame
for this state Of affairs, or are we, who
engage them and are responsible for
the manner in which their work is per-
formedf Just in so far as the manage
ment is efficient, will that efficiency be
reflected in the employe.
If this lack of efficiency can be
avoided, it will add materially to our
profits, but it will not be corrected
while we persist in a negative attitude
of refusing just wages, and the conse-
quent loss of capable salespeople who
think they will get better pay. Fortu-
nately, this negative or driving attitude
is rapidly becoming thing of the past,
and progressive merchants realize that
the positive method is the paying one.
Sure Way Sought Here
The stores with which I am con-
nected, namely: Bowman & Co., Harris
burg, and the Imperial Department
Store, Carlisle, sought for way in
which we could be sure of adequ ately
paying our people, and thereby retain
ing the help desired.
cit is admitted that the ideal way
would be to distribute share of the
profits amongst the employees, after
these profits have been verified by an
inventory, but as this would only pro-
vide for one, or at the most, two distri.
buttons year, the incentive that exists
in a more frequent distribution would
be lacking. Furthermore, owing to the
communal changes, by reason of em.
pfoyes leaving, as compared with a
manufacturing plant where the changes
are not so frequent, we desired a plan
Winch would appeal to our employees
right away, whether they be temporary
or permanent help.
The first thing to be ascertained
was the selling cost in each and every
department. Allowance was made for
such OF the sales force who had to look
after stock or other duties, which pre-.
vented them from putting in their full
time selling. The cost of each sales.
person was then compared against the
department cost, and then the selling
percentage of each department, sepa.
rately, for the year, was determined.
This was Lased on what it had ccst us,
and what l had found from experience
the correct cost should be.
In many instances the cost was
higher than the department could prof.
itably bear, brought about by the same
causes which exist in other stores. and
already outlined.
The selling cost was determined at
various rates. ranging from up to 7
per cent. This percentage was applied
against the wages paid each clerk. and
the average weekly required sales there.
by ascertained.
Figures Used as Basis
'To illustrate: In department
where the selling expenses had been de.
termmed at per cent. an employe re.
ceiving IS weekly would be required
to sell $3.50 each week, For sales
over and above this amount the EN-.
ploye was paid bonus, ranging from
to per cent, on the sales in excess
OF the required amount. This commits.
sion was based or whether the depart.
ment was selling at reasonable or un.
reasonable figure. 1t will be obvious
just as soon as the clerk received com
mission, her cost of selling would be
reduced. In other words, if she re
ceived wage of So and had to sell
$3.50 weekly, it equaled cost of s
per cent. If she sold $500, then she
was $40 in excess of the required
amount, and on this $40 she was paid
8 per cent, or S1.20, making hei
wages $3.50, or cost of 6-10 pei
cent, the effect being that the cost of
selling for that individual would be
reduced 4-1O per cent.
"The reason for the bonus being
paid at lower rate than the depart
ment cost is to take care of the excess
brought about by the clerks who cost
more than the department percentage
and which cannot be recovered from
sucL salespeople.
SIN the event that the clerk only
sold $3.50, then there was a deficit OF
$40, which was carried against her OF
the following week, and this deficit
was deducted from any excess before
commissions were paid.
1.-THE wages which existed previous
to the introduction of the plan were
allowed to stand, and whether clerks
sold over or under the required amount
they were always assured their regular
wages, so that the capable employt
only stood to gain and had nothing tc
lOse.
Plan Started in 1918
"The plan was started towards the
end of September, 1913, at the time
when business was picking up, so that
the employees did not have to make ur
the deficits which they would un
doubtedly have incurred had the plan
been adopted earlier This was done
Intentionally, so that we could have
the sales force enthusiastic from the
beginning.
"This method was followed out foi
about one year and several defects
were found and remedied from time tc
time. The principal objection was the
fact that in the busy seasons oui
clerks were enabled to make substan
tial commissions, but in the quiet sea
sons they would get discouraged by
the deficits in sales, which were adding
up and had to be made good in the
busy season. Then, again, they were
unable to easily adjust themselves tC
the change of maximum and minimum
earnings. In addition, we were just
as desirous of obtaining increased
earnings during the quiet season as In
the busy times, so last fall the plar
was changed and put on monthly
basis.
"From the information already IN
our possession, we were enabled &c
more correctly determine the actua
and desired cost. Each department
and each salesperson was required tt
sell a determined amount, and tht
monthly cost for the year was liked
This method worked to better advan
tage from all points of view. In tht
dull months $500 might be required IL