UNDERSTANDING &
CONTROLLING
PEOPLE PRODUCTIVITY
AND COMPENSATION IN YOUR FIRM
AN EXECUTIVE EDUCATION
PROGRAM
OFFERED BY
Dr. Roger K. Harvey
President, Value Associates, Ltd.
and
Emeritus Professor of Finance
The Ohio State University
Research
in wholesale-distribution shows that corporate and branch profitability are
positively related to people productivity.
The higher a distributor's employee productivity, the higher a
distributor's Return on Assets and Return on Equity.
Questions
remain on how to measure productivity and increase it in a wholesale
distribution firm: How should the
productivity of your sales force be measured?
How should the productivity in your office be measured? How should the productivity in your warehouse
be measured? Is your productivity high
or low compared to other firms in the same line of business? How can you simultaneously improve your
people productivity and your profitability?
Whether
productivity is high or low, corporate and branch managers also face the
question of compensation -- how much should people be paid, how should
compensation packages be structured to increase productivity and
motivation, and how do your compensation
levels compare to other firms in your line-of-business and in your region of
the country?
This
one-day executive education program (workshop or seminar) addresses these
questions and many others using a combination of financial and operations
analysis, computer simulation exercises, and peer group comparative data from
the industry performance survey (either conducted by the association or
collected by the author).
This
program is designed to answer people productivity and compensation questions
for participants and to suggest ways of implementing productivity and
compensation programs in their wholesale firm or branch. Through pre-program company interviews and a
custom industry survey, the measures, analysis, and data used during the
program will be geared to the participants’ own industry and company.
This
program begins by showing participants
the relationship between profitability measures and measures of people
productivity and compensation.
Productivity will be defined in terms of financial and physical
measures: Gross Profit margin and dollars,
Contribution margin and dollars, invoices, and invoice lines. Compensation will be defined in terms of
salary and commissions, fringe benefits, payroll taxes, health benefits, as
well as other owner and employee benefits.
Compensation will be related to Gross Profit, and the various components
of compensation itself will be analyzed as percentages of Total Compensation.
The
instructor will develop case materials specific to the industry, productivity
problems, and compensation levels of the participants in the program. A computer simulation model developed by the
instructor may be included in the program -- a model that allows addressing the
issues in the case as well as analyzing and solving the productivity and
compensation problems in the participant's own firm or branch. The computer model will be available at no
additional charge to the participants to use in their own firm or branch.
Peer
group comparative productivity and compensation data are essential to
identifying problems in these areas. If
data are not available, the instructor will conduct a survey among participants
prior to the program (at an additional charge to the association or
participants). The comparative
statistics generated from the survey will be used during the program and will
be available to the participants subsequent to the program for use in
identifying their own productivity and compensation problems. The data may be used in conjunction with the
computer simulation model used during the program.
• How
Do You Define Productivity in a Wholesale Distribution Firm? What Is People Productivity?
• People
Productivity Measures -- Financial and
Physical Measures of Employee Productivity
• Determining
Excess People by Using Measures of Productivity
• Strategies
and Tactics for Increasing Productivity in Your Firm
• Analyzing
and Evaluating Levels of Employee Compensation
• Setting
Compensation Levels Based on Productivity
• Integrating
Productivity and Compensation Measures