Pub. 12 2013-2014 Issue 2

N e w J e r s e y C o a l i t i o n O f A u t o m o t i v e R e t a i l e r s 15 new jersey auto retailer w w w . n j c a r . o r g Don’t lose another sale because of the lack of insurance coverage, when it is just a click away. Stop the loss of profit- able sales…especially on weekends and holidays…and get more cars delivered by acting now! Call S. Brown and Associates at (973) 270-2270 Are you LOSING SALES because your customers can’t produce proof of insurance? but that pay plan would be so complicated no one would be able to understand it. While the compensation might be built on something simple and measurable, such as labor gross profit, management has to be examining how employees are getting there. Which employees are really living up to our expectations and which aren’t? That is a staff evaluation strategy as a way to coach and develop your team. It does not mean we have to put a spiff, modifier or complex formula into the pay plan for everything we want employees to do. 4. Pay Plans Cannot Change Fre- quently. There is an axiom taught to builders and woodworkers everywhere, “Measure twice and cut once.” That is true of pay plans as well. Dealers need to make sure they and their employees can live with the highs and the lows. Once those parameters are calculated, you can see if the compensation is fair for the market area and whether it is within the guidelines for dealership compensation standards. I never like to change a pay plan more than once a year and the goal should be to have the same pay plan for several years. If the plan works for everyone and is consistent with your dealership goals and culture then it will have a long life as a pay plan that works. Rob Campbell, Analyst for The Mironov Group, can be contacted at 800-572-7101 or rcampbell@mironov.com. If the plan works for everyone and is consistent with your dealership goals and culture then it will have a long life as a pay plan that works.