The situation in the Car Wash may lead to its eventual collapse. When employees are not satisfied with their work environment, they will not work to their full potential. In addition, they may reveal the secrets of the business to competitors. When a competitor learns about its rival’s weaknesses, it may use them to strengthen its business strategies. Therefore, it is important to address all the issues that hinder the smooth flow of a business.
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There are several actions that may be taken in order to fix the issues that Mr. Baldy Car Wash faces. Before discussing these options, it is important to highlight some of the issues that cause problems to the site supervisors. These issues are:
- The mode of compensation is unfair.
- The mode of predicting the demand is unreliable.
- The wage rate is not reasonable.
What Should Be Done To Reverse The Present Situation?
Both groups of employees (full-time and part-time employees) who work in the car wash complain. The complaints result from the failure of the management to address the issues that have been listed above.
The following options may assist in reducing the challenges in the Car Wash:
Review of the Compensation Plan
The management should review its compensation plan. Compensating the employees depending on the amount of work that they have done does not favor part-time employees. The current plan indicates that if an employee does not work, he/she will not earn. Part-time employees are willing to work, but during summer most of them do not get this opportunity. The management should pay a fixed amount plus an hourly wage to the part-time workers. This will ensure that all employees earn even when they do not work. The benefits plan (tips per hour) should also be reviewed. The current plan tends to favor only one group of employees. A balanced benefits plan should be put in place.
Creation of an Employee Working Schedule
The company should establish the exact number of employees who can handle the tasks when there is low demand. Once the number has been ascertained, the number of full-time employees should be increased to match with that number. In this case, the site supervisors will no longer need to contact the part-time employees during the low season i.e. summer, because full-time employees will be available to perform the tasks. When full-time employees are used, their pay should be reviewed. An effective reward system should be implemented since the amount of work that they handle fluctuates.
Creation of Sound Competition Strategies
Mr. Baldy Car Wash is in competition with U-Wash centers and Laser Washers. This has forced the company to consider hiring new employees. The estimated costs of recruiting and training an employee are estimated to be $800. This value is too high. Instead of hiring new staff, the company should train and develop the existing employees. Hiring new ones will only increase the challenges that the company currently faces. The costs of hiring and training new staff should be used to train and compensate the existing employees, implement marketing programs, and purchase modern equipment that will improve service quality.
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This Car Wash should be able to maintain its competitiveness if the recommendations given above are implemented. It may not be easy to implement all measures at once, but with time, the company management will be able to implement all of them. Once the recommendations have been implemented, the management should constantly review the results. An action that is not fruitful should be revised.