Incentive comparison

Levi’s and BHPC

Old incentive scheme

Levi’s and BHPC runs the same incentive scheme for all the stores across GCC. The
communication updates of the scheme are through the WhatsApp on a daily basis. The old
incentive scheme had a direct transfer mechanism to the operations manager.
The operation manager used to distribute the incentive amount to the store staff according to
the kind scheme active at that time. The budget for the incentives was 0.5% of the total budget
and was distributed on a monthly basis to the operations manager.
There are three kinds of incentives for the store employees.
1. Weekend target- The fixed amount is given to the store staff when the store achieves its
weekly target.
2. Store champion- The employee with the highest sales gets the fixed amount and get
recognized as store champion.
3. Wow bills- The bills with biggest value of the day are given wow bills award with a fixed
amount.
For comparison, we will use the data of month of January, 2021.

Old incentive numbers for month of January

Information Levi’s BHPC

Total sale 3523150 2947807

Total incentive(0.5%) 17616 14739

GM Kitty given 14865 14800

GM Kitty left 2751 -61

1
INCENTIVE COMPARISON
Levi’s and BHPC

New incentive scheme

The new incentive scheme has been active from last Thursday.
• 1.5% of Sales to be disbursed weekly to the Sales Staff without linking numbers to
budget.
• Additional 1.5% of Sales to be paid end of the month which is linked to the monthly
target.
• 80% (of 1.5%) is to be given to sales staff and 20% to Store Manager/Stock room staff
(distribution to be decided by GM). Store manager should get a minimum of 15% of
(1.5% of Sales).
• Additional .10% of Sales to be given to GCC Brand Management (excluding Brand
Manager and Sales /Operation Head). If monthly budget achieved, then it will be .15%
of the Sales numbers. GM to decide allocation. 
• Incentive Week is Wednesday to Tuesday.
• Disbursement will be done on Thursday from the Store.
• This scheme will be run on a pilot basis for the month of February and will come into
effect 11th Feb 2021.

Weekend sales comparison- BHPC

GCC Feb 1st weekend Feb 2nd weekend Growth Dubai Feb 1st weekend Feb 2nd weekend Growth
Target 1208137 1208137 Target 279642 279642
Sales 1273918 1260769 -1% Sales 276221 299419 8%
Incentive 6370 18912 197% Incentive 1381 4491 225%
%Achieve 105.2% 104.2% %Achieve 98.8% 106.6%

Weekend sales comparison- Levi’s

GCC Feb 1st weekend Feb 2nd weekend Growth

Target 620391 620391
Sales 655667 706467 8%
Incentive 3278 10597 223%
%Achieve 105.4% 112.2%

2
INCENTIVE COMPARISON
Levi’s and BHPC

Implications
 The incentive budget has increased by minimum 200% as it has increased from 0.5%
to 1.5%.
 The total incentive amount can go up to the 500% for this month depending upon the
number of stores achieving monthly targets.
 The stores are over-achieving their sales targets and the employee morale has boosted
significantly due the change.
 All the employees have become much more focused and motivated to increase their
share in the incentive.