“In this way sales, service, parts and technicians would be incentivised to support each other and work together as a single team for the benefit of the site and its customers. If one area missed a target, the end-of-year bonus would be reduced for the whole site.”
This model, McMillan concedes, would place more fixed cost on a business, as it does for high street retail businesses.
“In a downturn, it might be less attractive, but in an upturn it limits the amount of commission payable, so it could be a case of ‘swings and roundabouts’.
“Those businesses which are still able to recruit great staff and deliver a consistently outstanding customer experience with the traditional remuneration model shouldn’t even consider changing, but for those struggling to recruit high-quality individuals, this could be a real alternative.”
David Oldroyd - 14/06/2014 10:11
Maybe the industry should used formal probationary periods as a mechanism to deal with under performers that have been hired. Thus low basic at joining then upped basic after 3 months then as result confirm competence then increase basic pay as it becomes irrelevant.