Memorandum
To: Store managers
From: Corporate headquarters
Re: Bonus pay
The Cost Less board of directors has voted to implement a new method of calculating annual year-end bonuses, beginning at the start of the next fiscal year. Since its inception, Cost Less has rewarded managers of stores that improved their sales revenue and limited the amount of employee overtime.
These conditions will still apply, but the board has decided to factor in a third condition: the amount of loss prevented by store security. As you know, in the past year shoplifting and employee embezzlement cost our company more than $3 million. To help reverse this trend, we would like managers to be more diligent in hiring and supervising security personnel, and to be more alert in watching for possible theft.
To help encourage this philosophy, the board has voted to pay a 10-percent bonus to managers whose stores hold inventory loss to less than 2 percent of total revenues for the year. The board has also directed that each Cost Less store be given extra financial resources to help train and motivate employees to be alert for shoplifting and other types of in-store theft. Remind your employees that when merchandise is stolen or money embezzled, it hurts everyone in the company.
Additional details will be forthcoming in the next two months.
Thank you for your attention to this matter.
