Develop a compensation plan for the Network Engineering and the Software Engineer positions that includes base salary, monetary incentives, and non-monetary incentives

CHAPTER 12 PAY FOR PERFORMANCE AND FINANCIAL INCENTIVES 409 Experiential Exercise Motivating the Sales Force at Express Auto Cars often had to be returned to have repair work redone. Purpose: The purpose of this exercise is to give you practice developing an incentive plan Table 12-3 describes Express Auto's current compensa tion system. Required Understanding: Be thoroughly familiar with this chapter, and read the following How to Set Up the Exercisel Instructions: Divide the Express Auto, an automobile mega-dealership with class into groups of four to five students. One or more more than 600 employees that represents 22 brands, has groups should analyze each of the five teams in column just received a very discouraging set of survey results. one. Each student group should analyze the compensa. Customer satisfaction scores have fallen for the ninth tion package for its Express Auto team. Each group straight quarter. Customer complaints include should address these questions It was hard to get prompt feedback from mechanics 12-12. In what ways might your team's compensa by phone. tion plan contribute to the customer service Salespeople often did not return phone calls problems? The finance people seemed "pushy. 12-13. What recommendations would you make to New cars were often not properly cleaned or had improve the compensation system in a way that minor items that needed immediate repair or would likely improve customer satisfaction? adjustment Express Auto Compensation System TABLE 12-3 Express Auto Team Responsibility of Team Current Compensation Method 1. Sales force Persuade buyer to purchase a car. Very small salary (minimum wage) with commissions. Commission rate increases with every 20 cars sold per month. Finance office Help close the sale; persuade customer to use Salary, plus bonus for each $10,000 financed with company finance plan the company 3. Detailing Inspect cars delivered from factory, clean, and make Piecework paid on the number of cars detailed per day. minor adjustments. Small hourly wage, plus bonus based on (1) number 4. Mechanic Provide factory warranty service, maintenance and repair of cars completed per day and (2) finishing each car faster than the standard estimated time to repair. 5. Receptionists phone Primary liaison between customer and sales force, Minimum wage finance, and mechanics. service personnel