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Case from journal
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Reference no. NAC2128
Authors: Thomas R Miller
Published by: NACRA - North American Case Research Association
Published in: "The Case Research Journal", 2001
Length: 8 pages
Data source: Field research

Abstract

The Carrington Pest Control Company, a medium-sized pest control business in a large southeastern city, was faced with a continuing and costly turnover problem with its pest control technicians who run routes throughout the city. After a study of industry compensation programs, Carrington revised its old base pay plus commission plan to promote growth of the business, enhance technicians'' earning potential, and increase service efficiency. However, 2 months after the new incentive system was introduced, some technicians were very disgruntled with it, claiming that they had to work harder but made less money. Fearing that some of his technicians would soon quit and he would face the problems of replacing them and training new workers, Branch Manager Fred Keller is under pressure to find a way to further modify the pay plan to meet its intended objectives.

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Abstract

The Carrington Pest Control Company, a medium-sized pest control business in a large southeastern city, was faced with a continuing and costly turnover problem with its pest control technicians who run routes throughout the city. After a study of industry compensation programs, Carrington revised its old base pay plus commission plan to promote growth of the business, enhance technicians'' earning potential, and increase service efficiency. However, 2 months after the new incentive system was introduced, some technicians were very disgruntled with it, claiming that they had to work harder but made less money. Fearing that some of his technicians would soon quit and he would face the problems of replacing them and training new workers, Branch Manager Fred Keller is under pressure to find a way to further modify the pay plan to meet its intended objectives.

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