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469582528638500-18097523876000Norfolk Motor Company/Columbus Motor CompanyCompensation PolicyIntroduction:Performance is at the heart of the NMC /CMC Compensation plan. All increases in pay will always be based on performance and NMC /CMC pay plans are designed so that employees in revenue producing positions have the majority of their compensation directly tied to their performance.ScopeThis Compensation plan is designed to assist with the identification and classification of all positions within the dealership and to determine market standard ranges for each position in order to ensure that we are competitive in the way that we compensate our employees within this labor market. The Compensation plan provides guidance on increases, promotions and job changes within the dealership.Employment CategoriesNon-Exempt Hourly: Any employee who is subject to overtime Flat Rate Commissioned:Any employee who has a level of skills or training to enable them to perform advanced Technical work being paid based on a pre-determined time scale allocated for the billing of Service hours. Such positions are Exempt under the FLSA when such positions are within the scope of a Dealership.Hourly Plus Performance:These are non-exempt employees subject to the payment of overtime and therefore have a set hourly rate. These employees also receive performance based pay in addition to their hourly rate.Base Pay Plus Performance:These are Exempt employees based on their tasks and are exempt under FLSA due to the nature of their duties and the levels of their commissions.Straight Commission/BonusThese employees are Exempt Commissioned employees under the FLSA and receive pay based on a percentage of sales.Hourly Vs. PerformanceSales Consultants are subject to overtime under the FLSA and therefore must clock in to ensure that the FLSA Commission requirements are met. Sales consultants will be paid off of the timeclock when conditions are not met but these positions are primarily paid Commission.Leadership SalariedManagers in the building whose compensation, duties and responsibilities meet the definition of being exempt from overtime and who are not managing Revenue Generating departments.Leadership Performance BasedManagers whose departments are generating revenue and whose compensation will be based not only on salary but on the departmental performance.Senior LeadersSenior Managers are in charge of a division and may have one or more managers reporting to them. These are strategic leaders whose pay is based on the performance on more than one department, or on the store as a whole.Other DefinitionsBase Pay:Base pay is the initial pay prior to adding any performance based pay.Salary:Salary is the base pay for employees who are neither hourly nor rely on performance based pay.Performance Based:Pay that is determined by units, commission, or other criteria that is determined by performance and revenue generation. Performance based falls into several categories Commission: Commission is a percentage of revenue produced that is paid to an employee. Financial Performance Based.Per Unit Pay: Unlike commission, per unit pay is paid at a set rate and not at a percentage.Bonus: Bonuses are flat pay based on achievement of certain benchmarks as outlined in an employee’s compensation plan. Below are the primary bonus categories.Customer Satisfaction Index – CSIEmployee Satisfaction Index – ESIGoal AttainmentStore Goal AttainmentFlat Rate: Flat rate determines pay for Automotive or Auto body Technicians based on their certifications and the flat rate estimates of assigned jobs.Hourly wage:Is the hourly rate that is earned by a non-exempt employee who is not otherwise subjected to a Flat Rate or Performance Based Pay Structure.Guarantee:For some positions which rely largely upon personal performance criteria to determine pay, a new employee may be hired with a Guaranteed Salary for a period of time not to exceed 90 days to allow them to be trained and able to meet the Performance Criteria Levels to make them financially successful. Market Range BackgroundDetermination of wages, salaries and performance based earnings is done based on the local labor market and similarly skilled positions within the market. Ranges are built to reflect our local market and may not reflect a market in another economy (i.e. Kansas City). Ongoing research and adjustments are made to ensure that we remain competitive in this market.Pay RangesPay ranges are determined based on similarly skilled positions within the dealership and within the labor market as a whole. Ranges are in place to identify the minimum, and maximum amount of pay that would be assigned to any given position. Pay ranges only refer to hourly wages, base pay, flat rate, and base salary. All pay for performance plans have unlimited earning potential based on the plan and individual performance.Pay IncreasesThe majority of employees in the dealership have Performance Based pay and their performance will determine increases. However, all employees are subject to an annual performance review for consideration of their Base or Hourly pay increase in line with our published ranges. For employees who are already being paid at the top of their range and who are not earning a performance based pay (i.e. Straight Hourly or Straight Salaried) a one-time bonus can be considered at the time of review in lieu of an increase where the increase would be a violation of this policy.Temporary AssignmentIn some cases and some positions, a Full Time employee may continue their duties on a part time or on a limited capacity basis for a period of time. This may coincide with an education sabbatical, temporary medical or family need (i.e. returning from pregnancy or being placed by a doctor on a temporary work restriction). In these cases, the dealership can allow the employee who may have been compensated based on performance based or otherwise salaried, to receive an hourly wage for that temporary period of time which is based on position, skills, dealership need, and past performance and tenure of the employee. This hourly rate shall never exceed the calculated hourly rate of the annual salary this person was earning.Transparency and DocumentationNo changes can be made to employee compensation plans without going through the changes thoroughly with the employee and by receiving an employee signature on the new document.Payroll DocumentationFor each non-hourly position, payroll must receive a worksheet that calculates the employees pay based on their pay plan. Each sheet submitted to Payroll should have both the Manager and Employee Signature. Management of the PlanNo additional position can be created without going through HR for development of an appropriate Job Description and for review of appropriate compensation within this plan. No position can be paid outside of the established criteria for the position with the exception of the Temporary Assignment Caveat. No wage or salary can exceed the maximum wage in a range without reviewing the processes with the GM, Dealer, Controller and HR. ConfidentialityAlthough the general pay plans are presented in this document and the general ranges and pay for each position is posted and available to all employees to help them understand and work toward a career path within the dealership, individual pay plans for individual employees that fall within these ranges are and must remain confidential. Pay Scales and TypesNon- Exempt PositionsThese positions are paid by the hour and are subject to overtime for all hours worked in excess of 40 hours in a week. These positions are not eligible for any other type of performance pay but may receive CSI Bonus or other Bonuses as determined by the GM/Dealer/HR.PositionMarket Minimum?MaximumReceptionist$9.00$13.00Office Assistant$12.00$16.00Cashier/File Clerk$10.00$13.00Lube Tech$11.00$14.00Parts Runner$10.00$13.00Parts Counter$11.00$15.00Assistant parts manager$13.00$19.00Detail$10.00$13.00Detail Foreman$11.50$16.00Body Shop Coordinator$10.00$12.00Courtesy Driver/Porter$9.00$13.00Tech Foreman (Full Time)$20.00$30.00Warranty Assistant$11.00$14.00Used Car Reconditioning Technician$12.00$19.00Office Manager*$14.00$20.00*In the case of a smaller dealership the Office Manager may have more task responsibilities and not have the ability to delegate. Therefore this position could be fall into the Non-Exempt Category.Flat Rate CommissionedThese positions are highly trained and skilled employees who have the ability to be paid based on Flat Rate. Flat rate indicates a rate of pay for a set amount of time and customer charge on a specific job task. These employees are considered performance based because they have the ability to earn more money through efficiency and training which is why in a Dealership environment these employees can be commission based. These employees may also be subject to a Customer Satisfaction Bonus.PositionMarket Minimum?MaximumAutomotive Technician D (1-3 certification)$16.00$19.00Automotive Technician C (4-5 certifications)$17.00$20.00Automotive Technician B (6-7 certifications)$19.00$25.00Automotive Technician A (8 or more areas)$23.00$35.00Auto Body Technician$16.00$27.00Hourly Plus Performance BaseThese employees are subject to overtime based on their hourly wage and are also subject to a part of their compensation being tied to their individual performance. Positions Impacted Include:Sales and Internet AssistantExpress Lube Service WriterDue to the Complexity of each plan, these plans will appear in Appendix A.Base Salary plus CommissionThese employees are more purely commissioned under the FLSA and therefore are considered to be Exempt from overtime. The majority of pay received by these employees is tied to their individual performance. Due to the size of the Service Department in Columbus, Service Writers/Advisors are paid Base Plus Commission whereas Norfolk employees in the same role are paid based on straight commission plus Bonus.Positions Impacted Include:Internet Leads ManagerF&I ManagerCustomer Experience ManagerService Writer/Advisor CMC– Lead Advisor CMC*Due to the Complexity of each plan, these plans will appear in Appendix B.Straight Commission Plus BonusDue to the size and scope of the Service Department in Norfolk, Service Advisors have the ability to earn straight commission on the work that their team of Technicians is able to accomplish. The Straight Commission Pay Plan is listed below.Service Writer/Advisor - NorfolkFINANCIAL INCENTIVE/COMMISSIONRange of 2.5% to 4.5% of all Parts and Labor Sales on all closed Repair Orders written during the pay period.CUSTOMER SATISFACTION$200 Q16 personal score = zone +7$200 store Q16 score = zone+7$200 Blended CSI Store zone +7$200 Blended CSI Personal zone + 7Hourly Versus PerformanceThese employees are required to clock into the time clock to determine hours worked for consideration of Overtime if the employees pay does not exceed the minimum requirement for Commissioned employees under the FLSA. Typically, Commission will exceed the hourly pay plus overtime but earnings are reviewed on a monthly basis.Positions Impacted IncludeSales Consultant ISales Consultant IIDue to the Complexity of each plan, these plans will appear in Appendix C.Leadership Pay Plans / SalariedDepartment Managers who oversee departments that do not generate revenue are subject to a Salary as opposed to being primarily Performance Based. These employees may receive bonuses in addition to their salary but those are not typically considered a part of the typical Compensation package for these positions.Salaried PositionsPositionMinimum MarketMaximum MarketOffice Manager (when supervising 2 or more employees)$4100/Mo$5300/moWarranty Administrator / Service Office Manager$4100/Mo$5300/moDetail and Reconditioning Manager$4100/Mo$5300/moHR Manager (FT)$4100/Mo$5300/MoLeadership Pay Plans / Performance BasedManagers in revenue generating departments will be paid a base salary plus Performance pay that is dependent on the performance of their department. Positions impacted includeSales ManagerService ManagerBody Shop ManagerParts ManagerParts and Body Shop Manager (CMC)Express Lube ManagerLeadership Pay Plans do not appear as a part of this document.Senior Leadership Pay PlansThe most senior leaders in the organization are responsible for not only departmental performance but for continuing to oversee the strategic direction of the dealership and the development of a positive Culture. These senior management positions oversee the Leaders indicated in the previous section. Pay for these positions could start with an Interim Salary while Performance Criteria are determined, but they will a Base Salary plus Performance Pay based on the Store Performance. These positions include:General Sales ManagerFixed Operations ManagerGeneral ManagerControllerSales and Used Car ManagerSenior Leadership Pay Plans are not attached to this document and are maintained only by HR, the Dealer and the Controller.Appendix A: Hourly Plus CommissionSales and Internet AssistantBase Pay:Range $10 - $12 per hour24/7 Telephone Pay (As Assigned)$200 per monthPerformance Pay (CMC + NMC)MAPPARTARGETSales from Internet$150(30)$350 (50)$500 (75 units)0-30$5.00 per Unit 31-50$10.00 per Unit (Units 31-50)51+$25.00 per unit (Units 51+)Appointment set and kept on the internet 40-60$3.00 per appointment$180 (60)$280.00 (80)$320 (100)61-80$5.00 per appointment (appts 61-80)81+$7.00 per appointment (appts 81+)CSI Bonus:Sales PAR goal for CSI is 95%. The CSI bonus for hitting the 95 or above in both stores PAR will pay $100.00 per month.Store Bonus:Columbus and Norfolk Combined overall sales of 275 Units= $250 BonusPerformance Pay Bonus Estimations (not counting base or phone allowance)MAP (assumes no CSI/Store)PAR (Assumes CSI/Store)TARGET (Assumes CSI/Store)$330$980$1170.00Estimated monthly pay (including Base at 40 hours per week)MAPPARTARGET$2436.63$3086.63$3276.63Express Lube Service WriterHourly Rate Range $9.00 – 12.00 Per HourCommission Range 1.75% to 3.5% of Gross Sales in Express Lube Per Pay Period(1st – 15th of month pays out on 16th)(16th – End of Month pays out on 1st of following month)Customer SatisfactionStore CSI at or above ________ pays at $100Appendix B: Base Plus CommissionInternet Leads ManagerIn addition to standard sales consultant responsibilities this position acts in a primarily Outside Sales position, handling internet leads from the dealership and occasionally from home and has the ability to generate increased compensation based on increased outside workload.Target Goals:MAPPARTARGETTotal Number of Monthly Requests100115140Total Number Monthly Visits152030Total Number of Monthly Sales121825CompensationBase SalaryRange $2000 - $3000Pay for each Appointment Set and Kept during the month (both NGMAC and CMC)$25.00/eaPay for each set internet appointment that resulted in a sale (both NGMAC and CMC)$50.00/ea24/7 Telephone Responsibility Additional Pay$250.00STOREWIDE CSI Bonus if 95% or above (3 Month average)$250 The above compensation plan does not include any incentives provided by the factory. Any incentives provided by the factory will be provided to the Internet Leads Manager and are subject to tax withholding or 1099 Tax forms provided by the factory. A draw of $_________ (gross) will be provided on the 16th and the balance of your earnings will be paid on the 1st of the following month. I have reviewed, understand, and accept this compensation plan. This pay plan replaces any and all pay plans previously in place.F&I ManagerBase Salary Range$1,500 - $3000Compensation is dependent on individual performance unless otherwise indicated in this PENSATION PLANCalculation is based on the average monthly per vehicle retail (PVR) and vehicle product index (VPI) for vehicles logged with F&I Manager.The VPI is calculated by adding the number of products sold and dividing by the number of vehicles logged with F&I Manager (see example below). (VSC+MTN+CAP+LIFE+A&H+T&WP+APP+Dent) / Number of Vehicles = VPIPayout is based on a percentage of net profit generated (gross profit-actual chargebacks). PVR determined used gross profit/retail units delivered.Payouts based on net profit generated are determined as follows:Per Vehicle RetailVehicle Product Index$480 $530 $580 $630 $680 $730 $780 0.756%6.50%7%7.50%8%8.50%9%0.856.50%7%7.50%8%8.50%9%9.50%0.957%7.50%8%8.50%9%9.50%10%1.057.50%8%8.50%9%9.50%10%10.50%1.158%8.50%9%9.50%10%10.50%11%1.258.50%9%9.50%10%10.50%11%11.50%1.359%9.50%10%10.50%11%11.50%12%Total commission will be multiplied by total menu penetration percentage (paid up to 100%). (Commission X Menu Penetration = Payable Commission)Example: $7500(Commission) x92% (menu penetration)=$6900 paid. Penetration determined from MenuVantage Report.F&I Manager (Continued)SPIFFSVSC<30%0?MAINT<12%0?30%$10 MAP12%$5 PAR37%$25 PAR20%$10 ?45%$40 ?PAINT&INT<10%0?GAP<25%$0 ?10%$5 PAR25%$10 MAP15%$10 ?30%$15 PAR35%$20 ?DENT<5%0?5%$5 PART&W<10%$0 ?10%$10 ?10%$15 PAR20%$20 ?Spiff Amounts do not stackCUSTOMER SATISFACTION INCENTIVE3.9 Score on Question 13 for all F&I department =$250 Incentive4.0 Score Question 13 for all F&I department = $500 IncentiveScores do not stack payout is either $250 or $500. Based on CSI available first of each month.Outstanding Bank Balance Amendment: Commissions will not be paid on loans that you originated when the bank is more than 5 days in arrears at the time of payday. These commissions will be withheld from your paycheck at the time of payday and will be added back into your paycheck when those banks have funded those loansCompensation Schedule: A recoverable draw based on MAP estimated income will be issued with 50% on the 16th of the current month and 50% on the 1st of the following month. Additional incentives due or deficits owed will be adjusted on the 16th of the following month. Estimated Monthly Gross Income (not including quarterly bonus)Customer Experience ManagerBASE PAY - This is a Salaried Exempt PositionRange - $2000 - $3000 per month Plus the followingOn-Call Pay$100 per month to offset the cost of data plan on personal phoneOther$100 per month for point of contact at Front Desk.FINANCIAL PERFORMANCE3% of all Parts and Labor Sales on all closed Repair Orders minus the first $40,000 written during the pay period. CUSTOMER SATISFACTION$200 - CSI on question 16 at or above 88%$200 - CSI on question 16 at or above 92%$200 - CSI Store at or above 88%$200 - CSI Store at or above 92%All CSI Bonuses above are stackableThis pay plan is subject to review and change at the discretion of management. All Changes will be reviewed with the employee in detail.Service Writer/Advisor – Lead Service AdvisorBase Pay Range $2000 - $3000 Per Month.$_____of Base Pay paid on the 1st and $______Base Pay paid on the 16th.Financial IncentiveService Department Performance Incentive to be paid on the 1st of the following month. Incentive will be paid on Service Department Gross Profit.Level 1 – Range .75% of total service gross if 0-$55000 Gross ProfitLevel 2 – 1% of total service gross if $55,001-$60,000Level 3 - $1.5% of total service gross if $60,001-$65,000Level 4 is 2% of total service gross if $65,001 and up.Customer Satisfaction IncentiveCEI incentive at Par is $250CEI incentive at TARGET is an additional $250CEI paid on the 16th of the following month.APPENDIX C - Hourly vs. PerformanceSales Consultant I Compensation PlanThe following compensation plan will be used for the determination of all compensation provided that amount exceeds the federal minimum wage times all hours worked including overtime calculated at 1.5 times minimum wage for all hours worked in excess of 40 in a week. Individual Sales$175.00 - $185 per Retail Vehicle Sold (Depending on Location)Additional Duty Pay (additional duties are assigned based on performance, skills and seniority)___________________ $_______Individual Bonus Plan (Bonuses may vary in Columbus)12 Units = $150.00 **15 units = $600.00**18 units = $900.00**21 units = $1200.00**25 units*+ = $1500 +$35.00 additional per unitCSI Bonus $250 if top box score 3 month average is 95% or above, and you have met a minimum of 9 units sold.If CSI score is at 100% for a 3 month average, an additional $250 (for a total of $500) will be paid.*Employees who average 25 or more units in a three month period will be considered eligible for the Sales Consultant II Compensation plan.**Bonus levels are not cumulative. Unit average could vary for Columbus.Store Bonus Store Bonus $10.00 per unit of individual sales based on the store hitting or exceeding 180 (Columbus Number will Vary) or more retail units sold and delivered in any calendar month and if the stores most current Purchase and delivery Satisfaction Survey’s Top Box Score is at or above 95%.The above compensation plan does not include any incentives provided by the factory. Any incentives provided by the factory will be provided to the sales Consultant and are subject to tax withholding or 1099 Tax forms provided by the factory. Pay periods are on the 1st and 16th of each month. A draw of $_________ (gross) will be provided on the 16th and the balance of your earnings will be paid on the 1st of the following month.I have reviewed, understand, and accept this compensation plan. This pay plan replaces any and all pay plans previously in place.Sales Consultant II Compensation PlanThe following compensation plan will be used for the determination of all compensation provided that amount exceeds the federal minimum wage times all hours worked including overtime calculated at 1.5 times minimum wage for all hours worked in excess of 40 in a week.Individual Sales$300.00 per Retail vehicle SoldAdditional Duty Pay___________________ $________*Employees whose average sales drop below 25 units per month in a 3 month average will be subject to review as Sales Consultant I. Criteria may vary in ColumbusNo additional per unit or store based bonuses are paid with this compensation plan.The above compensation plan does not include any incentives provided by the factory. Any incentives provided by the factory will be provided to the sales Consultant and are subject to tax withholding or 1099 Tax forms provided by the factory. Pay periods are on the 1st and 16th of each month. A draw of $_________ (gross) will be provided on the 16th and the balance of your earnings will be paid on the 1st of the following month. ................
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