Decision Culture

Case Study: Associate Performance - Prescriptive Analytics

Background: A membership based wholesale retail client wants to measure the productivity of the store associates. This information would help the client to remove the non performing associates and also help in determining more accurately performance bonus for the store associates. 

 

Approach: Associates were segmented into different groups - client facing, back-end, cashier, support staff etc. Different performance metrics were selected for each of the associate segments. Associates were ranked within each stores using the performance metrics. They were then compared with associates from other stores. Performance metrics were normalized across different stores within the country by accounting for store sales, demographics, region, geography, number of departments in the stores etc. 

 

Impact: The performance bonus to the associates was more structured. This reflected in higher scores in the employee satisfaction surveys. Having metrics to measure performance made associates more driven which resulted in increased sales. Long term non performing associates were fired.