Performance Pay at Safelite Auto Glass
Safelite Auto glass introduction of the proposed PPP plan to increase the productivity of the installers is going to bring more problems for the organization. One of the major reasons for this is the decrease of the technicians guarantee rate by 30% after 12 week period. This plan will increase the already existing turnover rate even higher. The problem with the PPP rate is that not all technicians will get the opportunity to increase their productivity. The first reason for this is the varying demand for the windshield around the year, during winter the demand is less which in turn provides less number of jobs per day for the technicians which can be less than the targeted PPP rate. So if the company follows the PPP rate plan these technicians would get less guarantee rate as well as less PPP rate when the demand for windshield is less. Safelite Auto glass cannot increase their productivity just by this PPP rate plan because the organization has more issues like scheduling errors, miscommunications where a wrong windshield or a wrong address, lack of inventory and operational problems all affect the pay of the technicians, first the company should focus not reducing the scheduling and operational mistakes and make it 100% productive only when these other factors are rectified, the PPP rate plan would work efficiently for the works. New problems may also arise due to this new PPP rate plan, there can be situations where certain technicians can be given more tasks in a given day and also less number of tasks given to technicians in a day so it makes it difficult for them to meet the standard number of jobs per day which could cause internal conflicts between the technicians. As mentioned in course materials “Market position (lag meet lead)” Safelite Auto glass company should make up a detailed report on the demand of the windshield in a given area and the number of technicians available should be equal to the demand per...
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