1. Merchandiser salaries: The bulk of the cost is the salaries of employees, their bonuses for achieving key performance indicators (KPIs), and tax deductions. The total payroll for one employee can exceed their net salary by up to 49%.
2. Personnel control and management: The costs of supervisors who coordinate the work of merchandisers. One supervisor oversees 10 to 15 people, and their costs are distributed proportionally among subordinates.
3. Operating expenses: Include the costs of employee training, communication, transportation, recruitment, use of automation systems (SFA), and other labor resources.
4. Agency commission: When working through agencies, their remuneration is 3-10% of the total project budget. This amount depends on the scale of the project and the list of services provided.
5. Deferred payment: Some agencies offer clients deferred payment for services, which is beneficial for businesses with seasonal sales. However, risks and cost of money are included in the price of services.
6. Project management: Costs for project managers who control the deadlines for completing tasks, compliance with standards and overall coordination of work.
7. HR and accounting support: Costs for recruiting and hiring employees, calculating salaries and maintaining accounting records.
8. Back-office: Costs for renting office space, the work of legal and administrative services, as well as ensuring process safety.
In addition, the cost may include additional analytical services, such as developing merchandising strategies based on sales data and display efficiency. Such strategies allow you to optimize the placement of goods and promotional materials, improving performance.
Employee motivation methods:
1. Monetary motivation: A combination of a fixed salary and bonuses for achieving KPIs. A ratio of the fixed part and bonuses in the proportion of 60/40 or 70/30 is considered effective. This motivates employees to achieve high results.
2. Rewards for extra tasks: Additional bonuses for completing tasks outside the main functionality: updating the display, working with new products or participating in promotions. This increases employee income and project efficiency.
3. Non-monetary motivation: Includes recognition of merits, competitions, training and development. Ratings within the team create an additional incentive, but it is important to consider that they can demotivate employees with low performance. Managers should work with such employees individually, analyzing the reasons and helping to improve results.
4. Training and development: Regular training and advanced training programs help employees develop skills and grow professionally. This improves their results and prepares them for more complex tasks.
5. Gamification: The introduction of game elements, such as ratings or a reward system, increases employee engagement. However, it is important to combine this with support and analysis of the reasons for low performance to avoid demotivation.
6. Career growth: Career development opportunities are one of the key motivation factors. The prospect of promotion increases commitment to the company and motivates employees to achieve high results. 7. Individual approach: Each employee is unique in their goals and motivation factors. To manage this aspect, you can use an adapted model based on the principles of the Eisenhower matrix:
Know and want to develop: such employees should be actively supported by offering opportunities for career growth and professional development.
Want, but don’t know how: these people need to be provided with mentoring and training. By developing their skills and confidence, their work results can be significantly improved.
Can, but don’t want: in such cases, it is important to identify the reasons for the decrease in motivation. This may be due to personal barriers, underestimation of their contribution or lack of inspiration. Solving these problems through dialogue, support and the right incentives will help involve them in the process.
Can’t and don’t want: Working with such employees requires significant effort and a long-term strategy. The results may be barely noticeable or not immediately apparent.
Effective management of the cost of merchandising services and employee motivation is the basis for a successful project. A combination of monetary and non-monetary incentives, an individual approach and career prospects allows you to create a productive working atmosphere and increase the team’s performance.
