In the interest of putting a greater emphasis on quality, General Motors is revising how bonuses are distributed by changing the formula(s) they use to determine bonus checks for over 37,000 white-collar workers.
According to The Detroit News, General Motors has increased the quality component of its bonus structure from 10 to 25 percent for 2014. This includes engineers, marketing planners, sales and service members, other salaried U.S. employees, and all executives, according to a GM spokesman.
“Many of the companies are trying to do whatever it takes to increase their quality level. Companies have generally focused on profitability, but right now quality is a center-stage item. If you have better quality, you’ll likely have better financial performance, said the chairman emeritus at the Center for Automotive Research in Ann Arbor, David Cole. General Motors said it uses a combination of internal and external data to measure quality.
Ford Motor Company also has instituted a similar program.