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Safelite Auto Glass Compensation Proposal

Proposal for Saqfelite Auto Glass
by

minnelly robles

on 26 February 2014

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Transcript of Safelite Auto Glass Compensation Proposal

Safelite Auto Glass
COMPENSATION PROPOSAL
PROBLEM
I I I I I
RECOMMENDATION PACKAGE
I I I I I
Renovate PPP Plan

Implement Company Tradition

Retrain Management Team

Monthly Employee Meetings
ANALYSIS: IMPLEMENTATION OF THE PPP PLAN
I I I I I
4.
SOLUTIONS
I I I I I
Improve communication efforts
Create a company tradition
Re-train management in leadership and motivation
Monthly employee meetings
Renovate PPP Plan

Attract employees with competitive experience
EX: Competing companies offered “Buck & Truck”

Empowering employees
Survey for lead shift employees
Providing room for growth within the company
Encourage creativity and ideas for improving company performance
ASSESSMENT
I I I I I
HISTORY
I I I I I
1947- Established Service Auto Glass in Wichita, KA
1991- Opened its first dispatch center
1997- Expanded to all 50 states
2000- Acquired by a syndicate of banks after filing for bankruptcy
2007- Acquired by Belron S.A, a vehicle repair and replacement company
2008- Entered a 3-year agreement with NASCAR Performance Network
2010- Company converted name from Belron to Safelite
COMPETITION
I I I I I
Salary Comparisons by Company
Safelite
Glass Doctor
All Star Glass
O*NET Online & Online Trends
Mygrant Glass
Milestone 4
Milestone 3
Milestone 2
Milestone 1
ANALYSIS OF EMPLOYEE RETENTION
I I I I I
ANALYSIS OF LOW EFFICIENCY/LOW INTRA-RELATIONSHIPS
I I I I I
1.
3.
ANALYSIS OF LOW PRODUCTIVITY
I I I I I
2.
Road to Success
Low efficiency/Intra-relationships

Low productivity

Employee retention

Implication and agreement on PPP Plan
Forecasted employment data for auto glass installers
State and national 2012 wages for the auto glass installer industry
ANALYSIS
Profitability induced competition
Unstable bonus structure

Store vs. Store
Working harder not smarter

Turning Business Away
Egocentrism
Lack of Drive

Preparation and Execution
Inconsistent consequences

Lack of Structure
Systems and procedures
Seasonal Business
Lower turnover rates/increase employee loyalty

Low employee satisfaction
“Buck and a truck” phenomenon
Technicians unsatisfied
Unreliable income & productivity factors

Manager Expectations
Responsibility distinction

High risk decision
High productivity or high turnover
We decided that the implementation process-trial and error run should take place approximately 7 months.
1 month will be management training
Assess the plan after the first quarter (3 months) during the busy season
Assess the plan for a subsequent quarter during the slower season

Measure effectiveness of new plan based on productivity and voluntary employee satisfaction surveys.
Make the proper adjustments on the PPP plan based on the results from the trial and error run.
KEY FACTS
I I I I I
Offered mobile service
Lower level managers were given $1,000 incentives for every store they opened
Grouped store locations together
Introduction of Performance Pay Plan (PPP)
Resistance to change from technicians
Milkovich G, Newman J, & Gerhart B. Compensation. 11th ed. New York, NY: McGraw-Hill, 2014. Print.

Hall, B., Lazear, E., Madigan, C. (2001, December 6). Performance Pay at Safelite Auto Glass (A). Harvard Business School. Retrived from https:// cb.hbsp.harvard.edu/cbmp/product/800291-PDF-ENG

U. S. Department of Labor, Employment and Training Administration. AUTOMOTIVE GLASS INSTALLERS AND REPAIRERS: CALIFORNIA. O*NET. Web. 4 Nov. 2013. Retrieved from: http://www.careerinfonet.org

Automotive Glass Installer/ Repairer. Web. (4 Nov. 2013). Retrieved from: https://www.salary.com

"9 Critical Steps for Successful Pay For Performance Compensation Plans."Compensation Consulting. N.p., n.d. Web. 08 Feb. 2014.

Folkman, Joseph. "Seven Ways To Increase Employee Satisfaction Without Giving A Raise." Forbes. Forbes Magazine, 27 Nov. 2013. Web. 08 Feb. 2014.

"Occupation Information." - America's Career InfoNet. N.p., n.d. Web. 08 Feb. 2014.

(M. Moreno, personal communication, January 28,2014)

"CareerBliss - Search Jobs, Salaries and Company Reviews | CareerBliss." CareerBliss - Search Jobs, Salaries and Company Reviews | CareerBliss. N.p., n.d. Web. 08 Feb. 2014.

"Get Hired. Love Your Job." Glassdoor. N.p., n.d. Web. 07 Feb. 2014.
REFERENCES
QUESTIONS ANYONE?
THANK YOU!
Low Productivity
Employees weren’t contributing much effort towards work

Errors between dispatch center and technicians
Customer was not at stated location when tech arrived
Technician was given bad or incorrect directions
Technicians felt it was unnecessary to use directions provided to them

10% - 20% of the time, technicians would arrive at their destination to find out they were given the wrong part
Current Safelite PPP Plan
Incentive plan introduced to increase productivity

2 Major Goals
Create loyalty among the workforce
Combat the industry’s high employee turnover rates

Seasonal business
Summer
Spring

Excluded some managers
Remove the 12 week guarantee rate cut

Remove all levels of management from being eligible for the PPP so that they solely focus on managing their location

Set goals based on busy and slow seasons.

Incentives paid out bi-annually
PPP Project Renovation
Adjusted installation goals will be based on seasons for a 3-month period as follows:

Ex: Busy Season Forecasts
Minimum installations: 340 windshields
Maximum installations: 375 windshields

Ex: Slow Season Forecasts
Minimum installations: 180 windshields
Maximum installations: 375 windshields
By:
Marcela Moreno
Maria Elias
Minnelly Robles
Sara Rocha
Luis Martinez
Yesenia Amaya
Full transcript