Solutions for low compensation of technician team in prestige sports cars company

Abstract

Recently, Prestige Sports Car Company Limited - an official distributor of Porsche cars in Vietnam, is facing with some serious issues, in which the high turn overate of technician team is the most significant issue. Since technician team play an essential role in company operation, this issue will surely lead to some negative results with company. And the most noticeable signal is the increase of the training and recruitment cost for technician team along with the decrease of after sale’s department revenue. Therefore, this thesis will focus to analyze these issues with technician team and figure out what is the main problem of these things through the data from company and from some qualitative research. Not only that, this thesis will evaluate and raise the most suitable solution as well as detail actions plan for solving problem. And as finding from the research, the main problem lead to the high turn overate of technician team is the low compensation of company. Through the depth interview with technician team, it is found that the base salary of company is low compare to other competitors in the market. Not only that, the performance bonus with the benefit package is not really attractive. Therefore, many technician of company feel disappointed and they decide to leave. And through qualitative research as well as theories, it can be stated that this problem does exist due to the limited pay structure, the expense control of company and the subjective evaluation of manager. Hence, it is suggested that company should design a new compensation plan by creating a new base salary range, keeping the same performance bonus and increasing benefits for employees. The cost for applying this set solution is high, but the return benefit will help improve company performance, surely.