In the interest of putting a greater emphasis on quality, Ford Motor Company has revised how bonuses are distributed to its white-collar employees. About 26,000 salaried workers, from administration assistants all the way up to CEO Alan Mulally, now have more of their bonuses tied to quality standards.
According to The Detroit News, 20 percent of bonuses for 2014 will be dependent on Ford meeting quality standards, a rise of 10 percent from before. This includes a standard metric that measures problems in vehicles, as well as the cost of warranty claims and customer satisfaction.
Ford has had several quality issues over the past few years, from corrosion to the underside of several models, fuel economy performance not meeting expectations in hybrids, delays in model introductions, and consumer publications that have panned Ford’s Microsoft interface.
“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 also has instituted a similar program.