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Express Automotive, an automobile mega-dealership with more than 600 employees that represent 22 brands, has just received a very discouraging set of survey results. It seems its customer satisfaction scores have fallen for the ninth straight quarter. Customer complaints included the following:
The following table describes Express Automotive's current compensation system.
Team
Responsibility
Current Compensation Method
Sales force
Persuade buyers 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 company finance plan.
Salary (comparable to other dealerships), plus $500 bonus for each $10,000 financed with the company.
Detailing
Inspect cars delivered from factory, clean them, and make minor adjustments.
Piecework paid on the number of cars detailed per day.
Mechanics
Provide factory warranty service, maintenance and repair.Small hourly wage, plus bonus based on
Receptionist/Phone service personnel
Act as a primary liaison between customer and sales force, finance, and mechanics.
Minimum wage
Which Compensation Methods
Helps Performance?
Which Compensation Methods Impede Performance?
Recommendations for Improvement?
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