Identify basic procedures for developing and controlling restaurant and foodservice compensation ...

Compensation is best controlled when the factors that affect it are known and when standards and procedures drive how the process is managed. Managers must monitor employee performance, take corrective action to maintain standards, and know about compensation issues that impact cost as well as regulatory requirements.

Many operations have merit pay plans that offer incentives for employees. Factors used for these programs must be measurable and employees must know what they are. Merit pay factors typically include job performance, accomplishments, current pay rates, and employee contributions to business goals.