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Sysco Compensation Strategies

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Sysco Compensation Strategies

Sysco Corporation is the global leader in selling, marketing, and distributing food products to restaurants, healthcare and educational facilities, lodging establishments and other customers who prepare meals away from home. Its family of products also includes equipment and supplies for the food service and hospitality industries. Sysco attributes their great success in part to its performance based company culture.
Performance Based Pay To achieve its company’s goals and stay number one as a food service marketer, Sysco motivates their employees by putting certain incentives into place. Sysco believes competencies, incentives, and work practices support high performance. As a result, Sysco compensation strategies are performance based. Driver and warehouse workers compensation at Sysco is primarily activity based. Their activity based performance is dependent upon each individual’s productivity level. The drivers for example have control over their route as if running their own business. A driver will have a number of elements that dictate the pay he or she will receive depending upon their route and pounds of products delivered to the customer. Also, as an added bonus, when a driver finishes their route early, they are free to leave for the day. This type of performance based pay extends throughout the entire company in various forms from the chairman of the company to the frontline workers.
Executives and managers at Sysco receive pay based incentives in the form of bonuses and stock options. The greater their performance in regards to achieving company objectives, the greater bonus they will receive. Sysco uses a percentage program when evaluating the managers and executives for their bonuses and stock options. Having a job is always positive, but having a great paying job that actually rewards you for excellent and diligent work is what everyone strives for.
In addition to performance based pay, Sysco has an excellent benefits package for their employees. Sysco offer 10 sick days a year after completing one year of employment with their corporation and you have the option to buy back 50% of unused sick leave. Also, the company recognizes 10 paid holidays throughout the year. The list of perks with Sysco seems to go on and on. It’s no wonder their company is number and a global leader in their industry. When businesses take care of their employees, their employees take care of them.
Conclusion
Sysco has stumbled upon something great in regards to HR and employee productivity. This company will remain on top because they value and understand the importance of their strength which begins and ends with the employees. Employees make or break a company. In my opinion, there is nothing to compare in regards to the way Sysco runs its performance based pay scale and other companies.

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