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PEI's Co-Directors Respond to Member QuestionsQWe are a general lines distributorship
selling mainly storage & handling equipment. ABrad Baker: We budget 1.5 to 2.0 percent; however, we have a significant amount of job sharing on the resource side. We also gain significant leverage utilizing co-op students from the local university on an as-needed basis. Stephen Klesic: It will vary greatly based on the level of sophistication you are trying to achieve (bar coding of parts, handheld scanners, GPS, etc.), as well as the level of knowledge and technological experience of your employees. Over the years, ours has averaged less than one percent. It is rather unfortunate, but an uneducated employee can cause extensive damage to a server or network by downloading a virus. Susan Maples: We budget one-half to one percent of our total sales for this area, normally staying in the half-percent range. When we have to update our systems, it actually averages out to the total one percent figure per year over a five-year period. QWhat recognition programs are
distributors using to complement their ABrad Baker: We have company-wide monthly activities. The "fun" committee is charged with dreaming up creative new ideas on a monthly basis, i.e., chili cook-offs, dessert contests, bingo, Indy 500, Halloween costume contests, of course visits by the Easter bunny and Santa. All company meetings are prefaced with giveaways for knowing the quality policy, lean concepts, and the 5S ideals. Winners get an extra day off, a gas card, shirts-anything left over from trade shows. We also offer a perfect attendance bonus, pay for unused vacation days, and have company-wide giveaways related to achieving safety goals. Stephen Klesic: We provide gift certificates, bonuses, tickets to sporting events, upgraded vehicles and travel upgrades. When working out of town, we provide an upgrade to a Residence Inn type hotel for long jobs. Susan Maples: Our Good Card Award is an incentive program for employees to honor their peers for going above and beyond the call of duty. If an employee sees an action taking place that is worthy of a "good card," the name of the employee doing the action and the employee who saw it are placed on an index card, then submitted to the director of the program for approval. At the end of the month, all "good cards" are counted and the employee who receives the most submissions throughout the month is given $50 cash, along with a certificate. This program has increased the camaraderie within the corporation and has given all employees a goal to strive for. Bill White: We reward employees with an annual bonus based on individual sales, individual gross profit and individual length of service.
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