Segmentation In Ford Motor Company

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Segmentation Segmentation is used within the workforce of Ford Motor Company. Employees are segmented based on location, union employees, and non-union employees. The offerings of total rewards vary between these segmentations. “The vast majority of the hourly employees in our Automotive operations are represented by unions and covered by collective bargaining agreements. In the U.S., approximately 99 percent of these unionized hourly employees are represented by the UAW. Approximately 1.5 percent of our U.S. salaried employees are also represented by unions. Most hourly employees and many non-management salaried employees at our operations outside of the U.S. are also represented by unions.” (Ford Motor Company, 2015) Additionally, employees…show more content…
With demographic shifts and advances in technology, Ford will have to modify their total rewards to attract and retain employees with the knowledge, skills, and abilities to keep their company moving forward. Total rewards should be reevaluated every year to ensure it is creating the necessary return on investment. With Ford Motor Company changes in the total rewards is slightly more difficult than with a fully non-union company. Union workers, represented by the union, negotiate a collective bargaining agreement between the union and company. This collective bargaining agreement states all of the total reward offerings of monetary, non-monetary, and work environment that the company is agreeing to provide each union employee. During the time period of the collective bargaining agreement the employer cannot unilaterally make a change in terms in the total rewards agreed upon if they are included in the mandatory subjects of bargaining. Instead they must propose a change in terms to the union representatives and get approval to make this change to mandatory subjects of…show more content…
The overall process should take a ten months from evaluation to implementation. It will begin with Ford using the four metrics of measuring productivity and efficiency per employee, measuring benefit enrollment, the cost of rewards per employee, and surveying employees for satisfaction and involvement. Ford should research any changes in employment laws that are upcoming, as well as researching and setting benchmarks for other rewards offered within the same market. After data has been collected from metrics and research Ford can develop potential reward offerings and prepare for collective bargaining negotiations with UAW. Once a collective bargaining agreement is signed Ford can communicate new reward offering to employees and finalize the plan. Starting on January 1, 2019 Ford can implement the new total rewards
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