``Benchmarking,'' which is a fancy term for comparing your business operation against another operation in the same or similar business, is a well accepted management tool.
I found value in certain segments of your Feb. 2 Market Data Book issue, particularly the Automotive Service Facts page, which allows some comparisons with individual shops.
I note in the ``Benefits Table'' chart that 42 percent of repair shops report paying a yearly bonus. We would like to implement an annual bonus program at our shop in order not only to provide an incentive for employees but also to make it possible for employees to share financially in the success of the business. However, we're struggling to come up with the right formula for such a program.
It would be helpful to know more details about yearly bonus programs that are in place at successful repair shops and/or tire dealerships. What are the formulas for such bonus programs? Who gets one, how much is it, what is it based upon, how is it calculated, etc?
Carolina Tire & Service Inc.
Editor's note: Are any Tire Business readers' shops offering employee bonus programs? Contact us via e-mail at [email protected] or write to TB (see the ``Letters to the Editor'' box on page 8 for our address) and we'll share your ideas with Mr. Mobley and other readers.