Safelight Autoglass MIT Sloan School of Management Safelite Autoglass What are the pros and cons of switching from wage rates to piece rates Why is Safelite a good candidate for this switch Should there be a guaranteed wage If so how should it be set What are the likely consequences of this switch for Turnover Recruitment Productivity Product Quality Lazear Study 40 increase in productivity 20 from higher productivity from same workers 20 from attracting better workers Technician Turnover at Safelite 90 80 Turnover 70 60 50 40 30 20 10 0 1993 1994 1995 Year 1996 1997 Compensation System Objectives Motivate or provide incentives for performance Attract talent Retain the best people Signal what the organization values Create a sense of equity fairness and justice
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