The rise in air travel in the 1960s and 1970s helped the car-rental industry grow, with competitors like Hertz and Avis locating rental offices within airports to serve travelers. But Enterprise founder Jack Taylor pursued an entirely different business model. Recognizing that travel is not the only reason to rent a car, he established Enterprise branches within local communities, targeting customers who needed transportation while their own vehicle was in the shop. Not only was his a low-cost strategy, but it also proved to be a significant differentiator that created a huge competitive advantage for Enterprise. Recruiting at Enterprise is a broad-based function. About 225 recruiters visit nearly a thousand universities and colleges looking for new prospects. Since college students appreciate both high-tech and high-touch recruiting methods, recruiters reach out to job candidates through meetings and phone calls, as well as through an award-winning interactive Web site that includes video clips and testimonials from current trainees. For several years, Enterprise has led the nation’s employers in college recruiting, including the recruiting of women and minorities. In recent years it has hired as many as 8,000 college graduates for entry-level positions, and it offers paid internships to an additional 2,000 students. Enterprise’s decentralized management system gives branch managers great latitude to shape their business to fit the wants and needs of their local market. Managers are given the authority and responsibility for their own success. An incentive pay system allows local offices to share in the profits they have generated. Employees receive promotions based on their performance. The arrangement is especially attractive to employees with an entrepreneurial streak; Enterprise branch managers are highly motivated to prove themselves.

• Enterprise president and COO Pam Nicholson began her career path at the company like thousands of other recent college grads do each year: as a management trainee in a local branch. How do Enterprise’s recruiting system and decentralized management style contribute to employees’ successes? How do they help the company? 

• Today, Enterprise’s workforce is a blend of baby boomers, Generation Xers, and others. As president and COO, how can Nicholson ensure that Enterprise continues to provide its workforce with the right rewards to keep them engaged and productive?