IFDA Study Measures Distributorships

The survey, which included responses from 38 foodservice distributors representing 181 locations, also contains a job profile on the DSR position to give more in-depth information about the position, how it is compensated, and how it fits into the organizational structure.

{mosimage}"Corporate executives are faced with the continuing challenge of effectively spending company funds to reward and retain employees, while controlling costs to maximize profits," observed Thomas Keay, president of K-Management Resources and the author of the report. "Increasingly, executives are searching for compensation methods that include variable pay programs that produce a 'win-win' result for employees and their company."

Participants in the survey provided two types of data about these annual compensation plans — how much they will budget for pay increases and how much they expect to increase their salary control structures (pay rate schedules or salary ranges). The data are reported for each of the four major employee groups: executives, other salaried employees, office hourly employees, and other (operations) hourly employees. The study shares findings on the average rise for 2005-07.

SALARIED COMPENSATION The main focus of the 2006 ECS is how much foodservice distributor peers are paying their employees in a number of typical or benchmark salaried jobs. This information is shared in sections defining compensation by annual sales, compensation by geographic region, and compensation by position. Compensation is reported in base salary, bonus, and salary range data.

Ten positions are analyzed by annual sales including CEO, CFO, and "top" executives with responsibility for procurement, information systems, human resources, and distribution. Other positions include division/branch manager, distribution/operations manager, sales manager, and procurement manager/director. Results of the survey confirm that there is a direct relationship between the size of the location (both corporate and distribution center) and the base salaries paid to key employees.

Twelve positions are analyzed in seven geographic regions including "manager" and "supervisor" positions in distribution, transportation, warehouse, sales, etc. The report notes that due to foodservice distributors now having to more frequently recruit nationally for salaried positions—thereby competing with national rates of pay—base salary relationships are no longer as clear when analyzed by geographic regions. This emerging trend should continue as mergers create larger organizations with national, rather than regional pay practices.

INCENTIVE PLANS The 2006 ECS also includes insights on incentive and bonus plans, a primary method for companies to supplement base pay as a means of rewarding employees for improving company or individual performance. Thirty-two of the companies participating in the survey provided data about 71 incentive plans, and results revealed that these plans are no longer only used to tie key executives to total company results, but are now used freely across employee groups, including hourly employees.

The 2006 Executive Compensation Survey Report is available to IFDA members for $195 and to non-members for $595. Companies that participated in the survey receive a complimentary copy.


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