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Wrap It Up Case Study

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WrapItUp: Developing a new compensation Plan – Case Study

Why do you think Martha Reyes made a personal visit to the store managers to discuss the program?
Key issues:
- There was a huge problem of attracting( ACQUIRING) and retaining( RETENTION) top talent
- Frustration among employees that there is no pay difference (PARITY) between the top and low range of band
- Lack of motivation among managers
- LIBERTY TO DECIDE ON MENU IN CONTINGENT SITUATION/ CRAFTING MENU [ WHILE VEGETABLES WERE OUT OF STOCK] WAS NOT ALLOWED
- Customers were getting bored of the same menu
- The revenue was always flat.
ShareIt Pilot
When Reyes decided to hire a consultant to study the causes for the problem and to resolve it, they came up with ShareIt programme, a new compensation plan where the profits will be shared among managers, help grow individual store profits and motivate managers.
Under the new programme, the profits will directly be equal to the performance metric, the managers appraisal will be linked to the performance and not the revenue of the firm. It was 35:15:50 model where 35% profit will go the manager, 15% will go to the associates and 50% will go the firm.
When they decided to launch this as a pilot progamme, they chose two outlets – Santa Monica & Cosa Mesa, Reyes decided to make a personal visit to the places and brief the managers in person because
- To motivate the managers and make sure they accept the offer
- Being in person will give more confidence about the programme and it is easy to resolve queries immediately
- Reyes can sense the motivational factor and know through their body language if they are honestly willing to take a shot at it
- Her presence will make them realize the importance and urgency in the need to modify the firm and willingness to create more opportunities
- She met the managers close to the launch so that the

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