But the bounce you get from that is short-lived. Giving people pay raises can motivate them. And, pride comes from employees knowing who you are, what you stand for, what you do for your community and for the industry. However, we must never overlook the importance of your employees taking pride in their work. These are the essentials of our business. We also ensure that we provide our employees with adequate training and a well-equipped environment. We’re teaching them about our legacy.”Īs business owners, we track KPIs, set goals, work on marketing and refine our business plans. According to Philippa Green, brand immersion trainer for Mercedes-Benz, “The ultimate goal is to engage their hearts and minds around the brand. Mercedes also built its Brand Immersion Center in Tuscaloosa, Ala., in 2014, where hundreds of employees go each year to spend time getting to know how the cars are built, gain a deeper understanding of the brand, the history of Mercedes and experience the legacy of the company. To experience not only the amazing performance and mechanical attributes of the vehicle, but also that they can turn heads as they drive through their neighborhoods or when they drive into the little league parking lot. Understanding the need to get front-line people more engaged and take pride in their work, Mercedes began to invite its dealer employees to spend 48 hours with the model of their choice. Why were their dealer employees so indifferent?Ī senior leader at Mercedes recognized the problem and stated, “Pride in the brand was not quite as strong as we thought, the level of engagement with work was not as deep as we thought.” Mercedes finally realized that until the employees at Mercedes genuinely cared more, no amount of money, policies or training would make a difference. After all, this is Mercedes, a car company that represents quality and sophistication. Mercedes top executives could not understand why customer service was not up to company expectations. In response to this, Mercedes decided to increase pay incentives, implement new policies and training programs. In other words, throwing money at a problem is a short-term fix. It’s putting a Ban-Aid on a more serious injury that requires much more care and attention.Ībout 10 years ago, Mercedes-Benz was struggling with its customer experience at many of its dealerships. However, in terms of long-term company growth, a focus on pay alone will never be the formula for success. And, there needs to be a process in place where your employees understand how and when they will get a pay raise. There should be incentives in place to reward your employees for reaching their personal and team goals. You must pay people a competitive wage with the opportunity to earn more. Let’s address employee compensation first. And, while there are times that we need to give pay raises, if your shop is struggling to meet its sales and production goals, increasing pay to improve business is not the answer. Three months later, your shop is once again struggling to meet its sales and production goals-and morale has slipped, too. Almost immediately, you see a boost in production. After a few agonizing weeks of pouring through reports, you make the decision to give across-the-board pay raises. You hear through the grapevine that some of your employees are wondering when they will get their next pay raise. Shop production is slipping and you’re not sure why. Your lead tech is not performing up to expectations.
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