By Jessica Wohl
NEW YORK (Reuters) - Office supply retailer Staples Inc. (SPLS.O: Quote, Profile, Research, Stock Buzz) used to hold pizza parties at the end of each month to reward its top-performing store employees.
But within the past few years, the company has replaced the piping hot, extra cheese and pepperoni kind of rewards with something its workers like even more -- cold, hard cash.
"Our employees said 'You know, if I have a choice between pizza on a Friday night with my friends at work, or more money to fill up my gas tank or take my boyfriend or girlfriend out to dinner, I'll take the money,'" Staples Chief Executive Ronald Sargent said at the Reuters Consumer and Retail Summit in New York this week.
"So, we killed the pizza parties and we put everybody on a bonus program."
The Staples bonus plan is possibly unique, but executives this week said improving customer service and making employees feel more like team members is a key goal for the remainder of this year and into the holidays.
Since Staples started its program in 2002, store employees have been measured on store profitability and customer service.
Employees making $8 or $9 an hour can get up to $3 an hour more at the end of the month in the program, Sargent said. He said 70 percent of employees get some incentive every month.
While the program has led to increased wages, profitability has also improved. "You don't mind spending more on wages if your bottom line is much better, and that's kind of what we're seeing," Sargent said. Continued...
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