Safelite Glass Performance Pay Essay Example for Free

Safelite Glass Performance Pay EssayBefore executives shrink to design a performance pay plan (PPP), they should carefully think about the objectives that they want employees to pursue. In Safelite case, they want to increase installers productivity, create loyalty among its for the most part transient workforce and combat the industrys traditionally high turnover rate. A good PPP should address all those problems.PPP should hasten a good measurement for the performance to the people who is eligible to the plan. They should also try to eliminate the factors which can affect installers productivity but not under(a) installers control. Otherwise, piece rate get out let installers feel unsecure.A potential problem with Safelite Glass proposed PPP is that installers could be misled to pursue installing quantities over qualities. angiotensin converting enzyme can imagine that poorly installed glass can, over time, adversely impact Safelites reputation as a quality installer. Th at, in the long run, will hurt the company/shareholders best interest.The cost for the measurement should not be too high. If incentive plan do improve productivity, it can be self-funded in that profit gains or cost savings can be used for bonus payouts.Before and after PPP installation, surveys are good approach to run into out employees satisfaction to the new plan. Base on the survey results, necessary changes will help establish a better PPP to conformation up loyalty. A good PPP should incentive better workers to stay.Overall be smart, as you get what you pay for.