We have all expressed concerns about the decrease in good customer service in a majority of retailers. It seems that the treatment of customers is just not a priority anymore; some employees of these retailers lose their focus, are not properly taught or encouraged to respect and serve the customer, or just plain take the customer for granted. We’ve all had experiences with good and bad customer service and can say that it definitely made an impression on each of us and ultimately influences where we shop. As Jesse put it, “Customer service should definitely be a high priority, because products come in by the truck-full, but consumers (customers) are difficult to ‘restock’.”
The other major thing that we all agree on is the one retailer at which we almost always have a pleasing experience – Publix. This company caters to its customers and hires employees who feel the same way, according to Susan. They will go out of their way to accommodate a shopper; they smile, are polite and courteous, and provide a very pleasant atmosphere. We have discovered one of the reasons behind this:
Publix has a “Tie Pay To Performance” policy that if an employee does not perform up to the company’s standards, his/her salary is decreased until they improve their performance. Employees are given plenty of notice to improve job performance prior to a deduction in pay. On the other hand, employees who excel in job performance are rewarded with a raise. (Good performance referring to giving excellent customer service, not making a large sales, or getting the most stock processed) Also an interesting aspect of Publix’s treatment of their workers is that part time employees have the opportunity to receive benefits (not too skimpy ones either!) and tuition reimbursements.
Now, this “Tie Pay to Performance” policy is not a brand new concept – it has helped many companies score high in customer satisfaction. Here is an interesting fact, provided by Khim: According to the ASCI (American Consumer Satisfaction Index), which began in 1994, PUBLIX Supermarkets have always ranked 1st in customer satisfaction among supermarkets, mainly because of their policy.
Our questions to you are:
Do you think “getting paid what you are worth” is reasonable treatment of employees, and do you think this directly results in better customer service?
What are some of your good/bad experiences related to this (as either a customer or an employee) and what would you do to make improvements?
(Authors: Christine Penhale, Jesse Ritter, Khim Chang, and Susan Betz)
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24 comments:
(Apologies in advance for getting this posted 2 hours later than I intended to. I only JUST arrived in Macon, but I will be keeping track of everyone's postings while I'm here--and "connected").
I think the Pay-per-Performance plan is ideal only if the job itself has its "perks" and a reputation of treating its group employees well to begin with, like Publix. However, it ALSO depends on WHO is assessing the employees...
As someone who works in the field of education, the idea of a reward or raise according to the educator's performance seems good on paper, but it's bad in practice (especially when the evaluators have no clue as to what the job actually entails). Too many educators here who need to get a raise, especially those in the field of ESE, are denied one because of how their schools perform on the FCAT...
...but that's another blog...
i agree, this sounds good in theory but i'm not sure as to how it would be applied fairly. take sports for example, should Brett Favre get a raise inspite of the Packers having a terrible season? The objection is for the "team" to win, right? (sorry Eddie) Very few jobs are praised on an individual basis being that the arent many individually bases sevice jobs; and those that are, well,the individual controls their own pay...
I think that the "Pay for Performance theory", is a good idea. However, as the original blog authors state, it is up to A supervisor to give a performance evaluation. These evaluations can be in some cases racially, and gender bias. As in the Wal-mart cases, where women are being passed over for promotions and such. In my experiences in law enforcement it was both. But hey, I worked in Polk County. I witnessed time after time when qualified women, and other ethnic groups were passed over for promotions an good assignments, because of these bias. They to were given lower evaluations in order to prevent promotions or merit raises.
In closing, as stated I believe the concept of pay for performance is a good idea, if it is fair and unbiased.
As a Publix associate, I am familiar with the Pay Tied to Performance process as I have been through it several times. I do not work in retail so I’m sure that the one used in my support area has been tailored to fit the milieu.
Customer service is only one of the aspects rated. Some others include job knowledge, initiative, team work… you get the picture. Your total point score shows management what pay range you fall within. That score is what determines if you are getting a raise or not. If your score drops noticeably, you may be counseled that next time you could lose money.
It is an excellent way of quantifying one’s performance if the supervisor takes enough time to do a thorough and accurate job. I have had the misfortune of having a supervisor that didn’t know how to score people. In the comments I was repeatedly lauded for my work but scored a little below the next pay level so I didn’t get a raise. When the next evaluation period arrived, the supervisor was gone and another person did the evaluation – I scored into the next pay bracket. Fortune had returned.
I think everyone should be paid what they are worth. If someone is goofing off a lot and disturbing coworkers, that person shouldn’t be making what someone in the same position is making that actually sits and works all day. In retail, the guy that wanders the aisles looking busy should make less than the new guy that is busting his tail all the time keeping things clean, stocking shelves and helping customers.
I think that it could work. I know that at my job we get our yearly raises on a performance appraisal done by our superviors. All year long I try to get my job done and help everyone elsse when possible. The helping always looks good on the review. It can make or break the performance score. So if you work hard all year long you get a better raise then if you just showed up and did some work. So at my job I think the "Pay-per-Performance plan" works and can work in other places too.
I think that it is a good idea that they are getting paid for what they are worth because i know if my pay was going to cost me i would want to be the best associate there is i work at a retail location and i know in my job good customer serive brings tehm back and spends more money for what they are getting for because they are getting the best out of us to make there visit as pleasent as possible soi agree 100%!
(Sorry for the previous deletion...I was just testing out the trashcan icon)
Good points, all, thus far (where is everyone else?). I'm going to echo Mark's sentiment(s) on employees being paid "what they're worth," not to mention the illustrative issue he brought up on supervisors not being able to assess an employee correctly. What of those who cannot assess certain employees objectively either? The human condition sometimes prevents us from being entirely free of (emotional) bias. For instance, what if you do your job well; however, your supervisor doesn't like you personally (which happens)? Naturally, if the supervisor is "good" at what she/he does and performs the job by the book, the assessment would be fair...but how often does that really happen?
Food for thought?
That is an interesting point you guys brought up. It reminds me of the time I was working at Gayfer’s dept. store (now Saks) at the Florida Mall in Orlando. I am one of those workers that managers can depend on to get the job done. We have “secret shoppers” come to evaluate us from time to time. I was in the Junior’s dept. At my evaluation, I learned from my manager that there had been two secret shoppers who came in on my shift on different days. One rated my service excellent and the other gave me poor rating. My manager knows my work ethics and we were both surprised by the poor rating. I can’t remember if that prevented a raise in salary but I didn’t really care because it was a job while in college. I mean I didn’t care if I got a raise or not. I always cared about what I do while at work. Now, as a dental hygienist, my yearly evaluation is based on my production. What I brought into the practice. Treating the patients well is important to the practice but the bottom line is what was my production for last year.
As a buyer, my job requires me to deal with customer service personnel everyday. I purchase items from all over the country, as well as Canada. I have had a lot of experience with rude sales people. I dread calling those people. I have even made the decision to stop buying from certain vendors all together. Then, that particular company will send in a outside sales person, so they can figure why they lost some big sales that month (we buy a lot), and I always have said the same thing….it is the way I was treated. My job is hard enough; I do not need the added stress of rude people. I am not sure if the Pay-per-Performance plan will work, simply because I feel that every aspect of our world is less polite than it was a few years ago. Is money really an incentive to be nice? Isn't that something that has to be taught from an early age? Children are being raised now with a sense of entitlement and being rude and disrespectful is deemed okay because parents want the child to feel they're the most important. And if they receive a decrease in pay because of bad service they will more than likely just find another job, because they usually never assume is because they have done something wrong.
In high school, I worked at a retail store. I was always polite, busted my butt, offered to work late and/or cover shifts...all for 10 cents over minimum wage. Raises were pretty much automatically given. Everyone recieved the same amount. I believe in getting paid for what you put out but unfortunately the world doesn't work like this. Its usually not what you know or how much you do, its who you know.
To answer the questions posed by the group...yes I think getting paid for what you are worth is reasonable. I don't think this would effects results in customer service because their are too many who feel "if I don't get paid what I want here, I'll go elsewhere". Many places even keep employees that they know aren't quality because its better than having no one.
Get paid by your performance, interesting points have been brought up here. I know for a fact that my job only gives me raises by my performance on a yearly basis, but I honestly can't stand it. Your evaluators will not remember everything you have done over the 12 months needless to say they have to remember what they have done. I’d rather get paid by negotiating, I feel we should persue what we feel we are worth, why should the number in an evaluation determine your pay scale and who is to say that all the hard work you have done is worth only .25 cents. So as far as Brett Farve getting his money, more props to him and his agent. He continues to hold and break records, I’m sorry my packers are having a rough time but we still have the best QB so he should continue to get his raises. That’s just how I feel, he provides great customer satisfaction when a touchdown is thrown!!
As far as a pay for your worth system I dont know how well that would work. Obviously it can since it is being used, but I would want to know a lot more about the point system and how you earn and loose points before I formed an opinion on it.
I do however have an opinion on customer service. I work at Disney World and in a simplified definition I can confidently say that it is a company centered on customer service. Unless it compromises safety, Disney employees know that putting the customer first and making them happy is our first priority. That is what makes Disney "the happiest place on earth". Without our exceptional customer service, we probably wouldn't be know around the world. Truth be told, Disney makes a killing off its customers, but at the end of the day, they go home happy because every employee took care them. I know that it doesnt happen everywhere, but that's what makes us different and thus special. The level of service makes customers more loyal and that is the ultimate goal of any company. When customers come back because their last visit was a good one, the company makes money, and everyone is happy.
I think that the pay for performance plan is a great idea! If I had a job that told me I was getting paid from my performance would make sure I did whatever was needed and go out of my way to do my best. I think that every business should be like this because in the long run there not only helping the the customer but they are helping themselves too. Since Publix is such a friendly atmosphere, buyers are more likely to go and tell there friends about there good experience there, causing the business to grow in customers!
I think that this pay for performance sounds great but is it really? I think that some people think they are worth more than they really are. I guess it would really depend on who is rating these 'employees' and how they are determining their raise, or how much they are worth.
I think the pay-for-performance theory can be effective but only in certain occupational feilds. In areas of retail, manual labor, or office employment this system will work because employees are judged by their work performance and not contigent on others.However, as our professor pointed out, in areas such as education, or other social service positions, this theory on looks good on paper.
At Lakeland Regional, our raises and bonuses are performance based, and I think it works well. Our system allows for a certain number of peer reviews as well as our charge nurse, so not just one person is evaluating. There are also a number of yearly things, such as continuing education classes, that go into our evaluation- so it is not all subjective.
The pay for preformance system does require a certain type of work and supervisor. There would have to be a larger system in place so that if the supervisor neglects to award the pay raise to a worthy employee, said employee would have a place to be heard. Publix has such a system.
I feel that Publix caters to its customers and hires employees who feel the same way. I have enjoyed the plesant atmosphere and smiles provided by the employees during the years I have shoped at Publix. If this is due to Publix encouraging good customer service from its employees with pay raises, I am all for the wage fluctuation. I have only recently shoped elsewhere for Publix supplies, not because I wanted to, but because Publix closes before midnight. The late night shopping experiences make me long for Publix to increase its hours so that I might have the excelent customer service instead of being waited on by the people who hate their jobs and everyone around them. I think that if more companies take after Publix's example and have a pay system set up to support good customer service, then there would be far more smiles on faces everywhere.
I think the pay for performance is an excellent idea. If people knew that they were getting paid better for better customer service, they would do their best to make the consumer happy.
The greatest motivation for working is being remunerated fairly. However who determines what is fair. Most corporations base this worth on the minimum wage, which many economist have said is below the cost of living. Higher end department stores offer better customer service. Management of higher end department stores employ more people per square foot of the store. These stores also offer a higher pay rate. I have noticed that customer service in general has fallen sharply. This suggest that employees are dissatisfied with their pay in all sectors of the work force.
I am suprised that publix has such standards. I actually know someone who works at publix and there is an actual cap, which is a max pay of $12... so no matter how well they do, if they have reached the $12 cap, they will not get any more raises. I still think the pay-per-performance is great though, but I doubt that any other company would implement something like this due to the fact that they would probably lose money. Companies rather lay Americans off and hire people from over seas, which is something that is already happening because it is allowed by our presidential administration...
Does it help customer relationship if the customer is always right? I believe in customer service, if it was not for the customer there would not be a retailer. Customer Service is very important in the economy and big business. Most businesses with good customer service have you coming back for more. Trinell
I think that some supervisors do give annula assesments but are they really worth anything when i get reviewed for something the max increase for our raise is only twenty cents in which i think that is crap becasue does twenty cents really make a huge difference after taxes anyway!
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