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General Motors Links Customer Loyalty to Employee Bonuses

General Motors does not want to go in reverse and the way they see it, customer loyalty is one key to maintaining forward momentum.

GM’s new initiative basically correlates salaried employees’ year-end bonuses to satisfied customers. In other words, if employees want year-end bonuses, they are going to have to make sure that quality goals and customer retention objectives are met. This new policy will be in effect for all of General Motor’s workers. This includes sales, marketing, designing and engineering staff.

Mark Reuss, General Motor’s North America President stated it’s the first time in his 26-year career that the automaker will reward employees based around how well they retain their customers. The customer retention goals met will be determined by sales and aftersales at dealerships. He commented, “That is the ultimate result of why we’re doing all of this, right? People come back and buy our cars and trucks.”

This new policy finalized the old practice that General Motors had of focusing on its own inside goals which did not consider the overall success of the organization. Reuss stated, “Everybody had their own metrics, which somehow were all green. But, weirdly, when we added it up, it was pretty red.”
Third party sales data and internal numbers are reviewed in order to set the loyalty target employees will need to reach in order to receive their bonus. The amount of that bonus has not been publicized. Customer loyalty now transcends the dealership and this new policy will highlight that throughout General Motor’s operations.

[Source: MotorTrend]