While cheaptravel options, such as cheap airplane tickets, discounttravel deals, and cheap vacation packages, aregreat, it would be nice to also receive superior service from airline employeeswhile in the air.
To improve its reputation with customers, American AirlinesGroup has offered its employees up to a $150 per month bonus if its workers canoutperform its three largest competitors.
The new American Airlines is made up of the old AmericanAirlines and US Airways who completed their merger in December. Together, the new American Airlines employsover 100,000 people around the world and operates almost 6,700 flights daily.
Americans employee incentive plan is being called OpsOlympics and comes with a three tiered structure: To earn the top monthly $150 bonus theairline has to turn in a better performance than Delta Air Lines, SouthwestAirlines, and United Airlines regarding on-time arrivals, baggage handling, andcustomer satisfaction, as measured by passenger complaints made to theDepartment of Transportation.
If American employees outperform the other airlines on twoof the three criteria, employees earn $100 for that month. Scoring first in only one area, results in a$50 bonus.
American Airlines wants to restore American to being anindustry leader. By offering theseincentives American believes that all of its employees will know and be heldaccountable for these critical objectives.
All American employees, no just those working inoperations, are eligible, except for employees of the airlines regionalcarriers. This program is similar to onethat US Airways had in place prior to the merger.
Incentive and employees recognition experts have observedthat Americans program shows promise. They like that American has identified unrealized work goals, isoffering specific metrics, and is demonstrating strongorganizational/leadership program.
Historically, reward programs that encourage everyone towork towards a common goal have proven effective in bonding employees andforging a single positive corporate culture after a merger.
However some experts argue that the programs $150 topreward is on the low side and that the optimal award for this type of programis more in the $250 range. The concernis that capping awards at $150 may prove to be a low motivating factor.
Some contend that monetary rewards are more effective whendistributed along with some type of individual recognition, such as employee ofthe month, a letter from the CEO, or another form of acknowledgment of workwell done. If not presented in ameaningful manner, and simply added to an employees paycheck, such awards tendto have less value.
American has commented that its new monthly bonus plan willnot replace individual recognition programs already in place.
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