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Dan Snyder is the CEO of Snyder’s Certified Auto and Truck Parts in Holland, Texas.


An example of a good rule is: 1) You cannot damage any other inventoried parts when you pull a part, OR 2) You must clean up all parts and debris from around the car after you pull the part from that car. Again, just keep them “between the ditches.” Penalties are the ruler slapping across the knuckles when the rumble strips don’t work. Use these sparingly, but use them. It is important that you set the expectations and clearly define them, and just like with children, they need to know the places not to go.


When you force employees to be more efficient, the first thing they look for are short cuts which equals, ‘That is good, right?’ Well, it depends on what short cuts they take. Defining


the rules (rumble strips) upfront is a good way to elimi- nate those short cuts that will lead to a lowering of quality standards. Our industry has a reputation for poor quality. There are many reasons for that. Some are in our control, but many are not. Don’t allow a motivated (or unmoti- vated) employee to take the wrong short cuts and lead to quality control issues in your business.


Let’s Rollout


Once the plan is made, the adjustments are done, and the rules are set, it is time for the rollout. The rollout is an important part of the plan, as well. I suggest a one-on-one discussion with each employee who will be working under this program. Explain the amount of $ that you are going to pay, per piece. Explain that the more they pull, the more that they make. Lastly, explain that you are going to run their current pay plan (probably hourly) parallel to the new pay plan for the next two weeks. Here is the great part. Explain to the employee that THEY get to pick which plan they are paid by for that next two weeks. Now they have control over the opportunity to give them- selves an instant raise! Now, two weeks is not set in stone. You can run it for three or maybe four weeks, but I would not go any longer than that. I like two weeks. Be sure to explain to them that after that two weeks has completed, the new pay plan will go into effect. Don’t waffle on this detail. It will start at the end of the period. This period will give them a chance to hit the ground running and “sprint” long enough to where they can see and feel the increased earning potential. Notice, I said “increased” earning potential. Remember the magic that I referred to above? Here it is. One more note of importance about this two- to four- week “trial” period. It will allow you to “correct” any


44 // May-June 2021


gross miscalculations that you may have made when you put the program together. Do not announce that you will correct these miscalculations upfront. If you do, you will doom your program to failure. However, as the program develops after the rollout you should watch closely at how it actually is working in the “real world.” It is important that you make any corrections that need to be made after a good faith effort is being made by the employees and you discern that there may be some necessary adjustments.


Be prepared that you WILL lose some employees. Remember the example I stated above where there were two part pullers? Inev- itably, you all know that one of those two guys is going to be a superstar, the other is well … not. And yet, they are probably making the same hourly amount or some-


thing real close. Under this new program, the superstar will get paid more because he produces more. When he gets paid more, he is happier and is more inclined to stay working for your company. The “other” part puller will not. He will make less because he produces less. It is likely he will make less than what he was making hourly. Again, be prepared that you will lose some employees during this transfer, which equals good news. The ones you will lose were likely be the ones that were less productive and less valuable to the company than the superstar who is now making more calculated dollars per hour than he was making previously. Voila, the company is paying less per part to get it pulled. Win Win!


Failure is an Option


There are hundreds of reasons why this will not work. If you choose to believe them, you will never try or you will try and fail. As with any new initiative it takes plan- ning, execution, and “intestinal fortitude.” A well set up plan will pay high performers very well and incentivize them to stay. The same plan will encourage those not willing to work hard to move on to greener pastures. This is done with less management than is needed to constantly motivate unmotivated employees. As stated above, we have used “pay for performance” in many of our positions at our full-service and self-service organizations. During that time we have grown from one location with maybe 15 employees to six locations with over 300 motivated and satisfied employees, who have a high regard for the company they work for and the cus- tomers we provide parts for.


I hope you are able to use these concepts in your orga- nization and create an environment where high achievers want to be and others … don’t. Good Luck!


Automotive Recycling


PERFORMANCE


iStockphoto.com/SkyAceDesign


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