Safelite Glass Essay

Decent Essays
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
…show more content…
The advantages of shifting from wage rates to piece rate pay is piece rate pay is more preferred in customer service jobs, like in the case of Safelite Auto glass the more the number of customers the more beneficial it is for the employees as well as the company. The first advantage is that it motivates even the weakest technician to work hard as the more work they do the more salary they get. It’s a good opportunity for a technician to complete more jobs than the average number of jobs a day which helps them to earn more than the hourly based pay rates. The second advantage is it is more cost effective as the company is paying only for the number of jobs done by the technician whereas you have to pay evenly for all technicians regardless of their efforts if it was an hourly wage pay. Next advantage is it is easy to identify the good and the bad technicians by this piece per rate pay based on the number of jobs each technician does on an average day, by this the company can eliminate the workers who do not perform good and can also provide incentives and more recognition for good performing technicians which would further more motivate the technicians and increase the productivity of the company. This piece rate pay is a WIN-WIN situation for the company as more productive the employees are more money the
Get Access