This blog is about staff promotion
Avoiding subpar work was of paramount importance when MarineMax Inc., a recreational boat dealer based in Clear water, Fla., rolled out its incentive plan for service technicians. The company's incentive plan pays service technicians a flat rate for each service or repair they perform based on the manufacturers' standard for the amount of time each type of job should take.
For example, if the manufacturer's standard for a boat propeller replacement is three hours, the technician will be paid for three hours of work for that repair job no matter how long it actually takes him to do the job. This way, skilled and efficient technicians have an incentive to complete their work as quickly as possible. If an efficient technician is able to replace the propeller in two hours and 10 minutes, he saves 50 minutes that he can use for another repair. But if he takes three and a half hours to replace the propeller, his pay could be affected if he doesn't catch up.
"Some technicians are so good that they can achieve 120 percent to 150 percent or even double the standard output" and, therefore, significantly increase their paYS.
Of course, without appropriate safeguards, this type of incentive plan can result in poor performance, with technicians rushing through repairs to maximize their incentive payout. To prevent that, Marine requires technicians to redo incomplete or improper repairs for no additional pay. "This makes sure they are penalized for shoddy work,". "If the work is done right the first time, it doesn't come back." Although it hasn't been an issue for MarineMax, companies interested in implementing this sort of incentive must take care that any penalties for having to redo work do not bring employee pay below applicable minimum wage laws.
This checks and balances system is only one of several reasons why the MarineMax plan has achieved its desired results. In addition, the plan is closely tied to the company's business goals, such as providing fast and reliable service to customers, and employees can see a clear link between better performance and higher incentive payouts.
Unfortunately, not every company's incentive plan is as successful as Marine. The following suggestions can help employers craft an incentive plan that sets employees and the company up for success without incorporating disincentives that can reduce the plan's effectiveness.
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