Changing the Reward System at Strauss Cars

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Strauss Cars is one of the leading car rental companies in Europe, operated in 25 countries with about 1250 points of sale. After strategic review in 2012, Board decided to change traditional values and to focus on organic growth and improve the quality of service to its customers. Also, Board decided to unite sales and marketing centers in Edinburgh; consequently, staff from Manchester and Cardiff will be offered redundancy or relocation.

Implementation of Board new strategic plans is a big issue for a company overall and especially for employees from Manchester and Cardiff. HR department have no influence on board decisions, HR Director didn’t play a role of business partner in Strauss Cars and that’s why Board didn’t consulted with him about their plans and new strategy was formulated without HR and reward issues.

At present time, Strauss Cars don’t have a reward strategy at all. The company pays average salaries, but Joe Root noted that salary levels in sales and marketing centers are inconsistent. Customer service managers claimed that their staff is underpaid and leaving company. Organisation structure is unclear and there are a lot of job titles and terms and conditions across the sales and marketing center and head office. Salaries weren’t reviewed systematically and job profiles didn’t evaluated formally and properly. The only one benefit is subsidised car hire, also there are no incentive payments in Strauss Cars. Performance management system, as appraisal system is also not presented in the company.

Lack of systematic approach to staff reward, i.e. constructing reward system in accordance with the strategy and objectives of the company, results in loss of employee engagement and discouragers staff loyalty to the co...

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Schein, E. (1990), “Organizational culture”, American Psychologist, Vol. 45 No. 2, pp. 109-19.

Spreitzer, G. M. (1995). Psychological empowerment in the workplace: Dimensions, measurement, and, validation. Academy Of Management Journal, 38.

Torrington, D., Hall, L., Taylor, S., (2009) Fundamentals of human resource management: managing people at work, Harlow, England; New York: Prentice Hall/Financial Times.

Zheng, W., Yang, B. & McLean, G.N., 2010. Linking organizational culture, structure, strategy, and organizational effectiveness: Mediating role of knowledge management. Journal of Business Research, 63(7), pp.763–771

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