Case | HBS Case Collection | June 2000 (Revised December 2001)

Performance Pay at Safelite Auto Glass (A)

by Brian J. Hall, Edward Lazear and Carleen Madigan

Abstract

Describes a company's changing of its compensation and incentive plan. In particular, it shows how a change from hourly pay to piece rate pay (for windshield installers) affected productivity, pay, and turnover.

Keywords: Motivation and Incentives; Performance Productivity; Change; Compensation and Benefits; Service Industry; Auto Industry;

Citation:

Hall, Brian J., Edward Lazear, and Carleen Madigan. "Performance Pay at Safelite Auto Glass (A)." Harvard Business School Case 800-291, June 2000. (Revised December 2001.)