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Paying wages falls under internal management. Although internal management cannot directly create profits, it can optimize various management points through improving efficiency, streamlining processes, and effective allocation, ultimately yielding benefits in cost control.
The author suggests that bosses adjust their perspective on wages:
First, employees are customers, and wages are the product. Products need to be sold, and they need packaging, design, and even promotional states. Therefore, wages can be seen as a product that needs to be sold to customers. Second, wages are not just given to the employee alone, but to the employee's entire family. Finally, when accounts are clear, responsibilities become clear. When paying wages, the accounts must be settled clearly at the same time; otherwise, employees will always feel their wages are too low. Specifically, when paying wages, some supporting tasks can be implemented simultaneously.
About the Wage Receipt Form
Employees should sign when receiving wages. Many bosses treat this signing step merely as a confirmation procedure, letting employees sign their names, even putting all employees' wages on one large sheet for everyone to sign. Doesn't this force employees to compare wages, leading to disputes and dissatisfaction?
Pay attention to formality: use red cardstock, print in black font, and create a separate wage receipt for each employee, one per year. Keep them in a file folder or large envelope, and take them out when wages are distributed for the employee to sign on their own exclusive receipt.
Asset Consumption Statement in Wages
Employees at work create wealth for the company but also consume company assets, even wasting them. I firmly believe that some employees' unreasonable monthly asset consumption exceeds the wealth and wages they create for the company. Such employees are costing the company money. However, many bosses lack a clear system to accurately calculate each employee's actual asset consumption and value creation.
Here is a simple method to initially analyze employees' consumption of company assets: summarize the monthly consumption of company assets by each employee, break it down per person, and post it publicly the day before wages are paid so everyone can see.
In terms of categories, start calculating from the following items:
- Allocated office utilities, water, electricity, and rent
- Personal office supplies expenses
- Personally reimbursed mobile phone fees
- Allocated fixed-line phone, fax, and internet costs
- Depreciation of personal office equipment
- Interest costs due to outstanding accounts receivable
- Personally reimbursed customer relationship expenses
- Usage costs of transport vehicles
- Personal vehicle usage costs
- Profit discounts from personally applied activities
- Personal travel expenses
- Costs of promotional activities personally responsible for
- Interest costs from inventory backlog due to unmet sales targets
From a calculation perspective, this accounting allows employees to feel the difficulty of being a boss, compare the money they spend with the profits they create for the company, and then look at their own wages.
Employee Wage Explanation Statement
How the wage amount is calculated is a question employees always care about. Many employees keep a small notebook and calculate their monthly wages and bonuses themselves. Of course, employees calculating their own wage income only consider their own perspective, not the overall picture, and they won't proactively analyze their own problems.
The author suggests that bosses proactively provide employees with a wage explanation statement. For example, the statement can include the following:
- Monthly task volume for each product, direct completion amount, and completion rate
- Status of accounts receivable collection
- Execution of related market activities
- Overview of execution and creativity
- Additional costs, accidents, losses, or potential hazards due to poor work performance
- Strengths and progress in the month's work
- Problems and areas needing improvement in the month's work
- Key focus for the next month
This statement can be distributed together with wages and does not need to be made public.
Supporting Welfare Items
When it comes to distributing benefits, many bosses find it troublesome. Distributor bosses should understand that welfare items are not just for the employee but for the employee's family. After the employee receives cash, giving something to the family members allows everyone to feel the company's contribution. When selecting items, consider the needs of the employee's family members and purchase targeted items.
Text: Sugar, Tobacco, and Alcohol Magazine
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