SPOTLIGHT ON EXCELLENCE

We were amazed at how much more productive our employees could be, given the right motivation.

Co-Part yard, Baird says his inventory has changed to include “older, junkier cars.” That was a fundamen- tal adjustment, going against the company’s long- standing business model, but it has turned out to be a smart move, Baird reports. “The profit margins on these older vehicles are higher, so it was a change that makes sense,” he says.

Bottom line: Different can be better. Pay for Performance

Certain aspects of the auto recycling business are universal, regardless of a yard’s locale, size or business model. Chief among them may be the challenge of finding and retaining good employees. Baird’s runs a fairly lean operation – about 10 yard- men, two drivers, four salespeople, three inventory

specialists and two warehousemen for a total of 25 employees – which means there is no margin for care- less work or slippage. Despite treating employees fair- ly and honestly, the company was plagued with high turnover.

The tide shifted several months ago when Baird’s Auto Parts put virtually all yard employees on a pay- for-performance plan. “It’s basically piecework. The more they do, the more they make,” Baird says. “We were amazed at how much more productive our employees could be, given the right motivation.” Sales positions, which are difficult to fit into a piece- work structure, are commission based. Management, including Russell, Randy, Russell’s wife Diane who is the bookkeeper and title specialist, and their son Travis, the general manager, continue to work under a conventional salary structure.

Make Quality Control Everyone’s Job Ask Baird about the quality control department at

Baird’s Auto Parts, and you’ll have a short conversa- tion. There isn’t one. What’s more, Baird does not see the need for one. Baird’s Auto Parts has recently hired an employ- ee whose main responsibility is QC. To create con- tinuous QC, Baird believes that everyone who handles parts is a member of the quality control team. “We have people handling inventory and prepping parts. Making sure parts are clean and ready to go is part of their job,” he stresses. As the final QC check, every salesperson is expected to examine each part sold before it gets shipped to a customer.

66 Automotive Recycling | November-December 2015