Auto Rental News
MenuMENU
SearchSEARCH

How to Implement an Incentive Plan

A well-structured incentive plan not only rewards your employees for their achievements but also improves your bottom line.

by Sharon Faulkner
August 22, 2014
How to Implement an Incentive Plan

Photo via iStockPhoto.com/Merzavka

5 min to read


Photo via iStockPhoto.com/Merzavka


Employees are the face and voice of your business. Whether you’re an international corporation or a family-run company, your staff is the single most important part of your business that you offer the public.

If you don’t currently offer any incentives — or the incentives you do have aren’t generating the results you had hoped for — it’s time to review and implement a plan. Incentives not only improve your bottom line, but they also reward your employees for their achievements and empower them by making them realize their contributions to the company.

Ad Loading...


Gaining Buy In

Knowledge is the key to success. For this reason, training employees to fully understand the benchmarks of the car rental industry is critical to the success of the company. Too many rental agents only know how to mechanically rent a car — they don’t know the number of cars they need to rent to attain a daily utilization that will help produce a profit.

Good car rental operators live and die by statistics. You know your RPU (revenue per unit, per month), but do your employees? You alone can’t achieve your benchmarks; you need your employees’ help.

Share with them last month’s RPU, as well as your RPU from the same month last year. Then show them where your RPU needs to be in the current month.

If you meet your goal, reward your employees accordingly for their contributions to improving metrics such as utilization, daily dollar average and RPU.

Ad Loading...


Many Programs

There are many types of incentive programs, and it’s important that the incentives are built around what you already know how to measure.

One of the easiest metrics to track and incentivize is customer service, especially if you use the services of a secret shopper or a survey tracking company.

For a customer survey, you can choose the questions that will provide answers and insights into specific areas that need improvement, such as shuttle bus timeliness, the renter greeting, ease of check-in and more. The survey includes the rental agreement number and date and time of rental so the employee is easily identified.

Survey takers will rank each response from 0 to 100, and you can give employees a flat incentive of $25 to $50 for every 100 score they receive.

Ad Loading...

Don’t forget the car cleaners! Prepare a checklist of car cleaners’ responsibilities and make sure they initial the completed form. Have your managers take the completed checklists and inspect the vehicles prior to rental. This will determine that the car is rental ready to your standards.

For every properly prepared unit, set an incentive amount and include those rewards in their weekly paycheck. For any incentive program, add a separate line on the paycheck that identifies the incentive.

For any program, display the top-performing scores for everyone to see. While top scorers will beam with pride for being recognized, all employees will be motivated to strive for the incentive.


Effective Rewards

While most employees respond to cash bonuses or gift cards, there are other methods to motivate personnel. I allowed my best employees to work a 10-hour, four-day workweek, with three consecutive days off if they desired.

Ad Loading...

Educational opportunities are also great motivators that will not only benefit employees but will also produce a more skilled staff. Consider sending motivated and trusted employees to a class provided by your software company, a program offered by a customer service consulting agency or bring them to the Car Rental Show or Auto Rental Summit with you.

I rewarded my most loyal and long-standing employees with a trip that was fun, but also educational in a way that I couldn’t reproduce in the office.

[PAGEBREAK]

Administer and Track

These incentives are only a few suggestions. Be creative and decide what needs improvement. Then find a method that will help you and your employees reach those goals.

Ad Loading...

Once you decide on the program, who will participate and who will administer and track it, you must make certain that the employees fully understand the program and what is expected of them.

Remember that you can’t use an incentive program to make up for low pay or a lack of benefits; you’re looking for a reward method to improve performance and motivation. You may ask yourself, “Why do I have to give money to employees to do the job I already pay them for?” The simple answer is that incentives work — and the results to the bottom line will be the proof you were looking for.


Use Awards to Incentivize

Recognition should be a key ingredient in your recipe to incentivize your employees.

You might consider a year-end awards ceremony that recognizes your company’s top performers based on your incentive plan. Or you can seek to nominate your employees for awards outside your company — such as local civics or business awards — or those offered by your franchise system, if you are part of one.

Another opportunity is to distinguish the customer service champions in your company by nominating them for the Auto Rental News Professional of the Year Awards, sponsored by American Express. Now in its third year, the Professional of the Year Awards recognizes associates who demonstrate and promote outstanding customer satisfaction within the car rental process from auto rental companies worldwide.

Ad Loading...

“Winning an award will make your associate feel more empowered and part of your team, and the example set by the winner will be a benchmark for others to strive for,” says Chris Brown, executive editor of Auto Rental News. “The nomination in and of itself shows your associates that you’re invested in them.”

The Professional of the Year Awards will be given to three associates, one each from a corporate, franchise and independent location, from any auto rental company around the world. The winners will be announced on Nov. 11 at a luncheon at the 2014 Auto Rental Summit, which will be held at the Seminole Hard Rock Hotel & Casino in Hollywood, Fla.

For rules and eligibility and to nominate your associate, visit www.autorentalsummit.com and click on the “Awards and Honors” link. Entries are being accepted now. The deadline for entries is Sept. 19, 2014.


About the Author

Sharon Faulkner was a previous franchise owner of Dollar and Thrifty Car Rental, Albany International Airport, and is currently executive director of the American Car Rental Association. Faulkner will co-present a seminar at the 2014 Auto Rental Summit titled “The Metrics and Management of Employee Compensation,” which will further explore incentive programs.




Subscribe to Our Newsletter

More Rental Operations

A black Jeep is displayed at the Zubie-Bosch-TSD exhibit during the International Car Rental Show.

Zubie, PurCo Integrate Rental Damage Detection With Telematics

The combination brings actionable vehicle insights into PurCo’s PurInspect platform, improving damage detection and operational efficiency for rental fleets.

Read More →
50 states map showing LOR rates for each state with different shades of light to dark green

U.S. Length Of Rental (LOR) Declines Slightly in Q1 2026

LOR related to insurance claims overall continues to trend downward, but ongoing market and economic conditions could affect future results while the industry deals with staffing and productivity challenges.

Read More →
Illustration of a driverless futuristic front seat/dashboard view of other cars on a freeway with city skyline on horizon.

Hertz, Uber Deepen Roles In Self-Driving And Driver-Led Fleet Services

The business arrangement connects demand with scalable fleet management services and supports a range of mobility uses.

Read More →
Ad Loading...
A tech collage of electronic devices against a computer chip blueprint map.
Rental OperationsMay 1, 2026

Why Car Rental Can No Longer Run On Workarounds

The shift from branch-based software to connected operations is turning rental technology into strategic infrastructure.

Read More →
A tech collage of electronic devices against a computer chip blueprint map.
Rental OperationsMay 1, 2026

Why Car Rental Can No Longer Run On Workarounds

The shift from branch-based software to connected operations is turning rental technology into strategic infrastructure.

Read More →
A black Audi SUV superimposed on a historic scene from downtown Tashkent, Uzbekistan.

Carwiz Sets Up Rental Operations In Central Asia

The global franchise operation reaches a first in its rental fleet portfolio with new service in Uzbekistan.

Read More →
Ad Loading...
A raging brushfire in the countryside.
Rental Operationsby Martin RomjueApril 30, 2026

Where Rental Fleets Must Adjust To Shifting Catastrophe Risks

West Coast disasters pose unique challenges and liabilities for rental fleet operators, who are advised to take steps tailored to their specific situations.

Read More →
ARN Industry Newsmakers thumbnail page with ARN and ICRS logos and shots of Nick DiPrima and Martin Romjue
Rental Operationsby Martin RomjueApril 27, 2026

Using AI To Find Rental Car Damage

Angry car renters are storming social media, the mainstream media, and online ratings platforms to complain about charges they claim are either unfounded or excessive.

Read More →
Photo of CEO Krešimir Dobrilović against a gray modernist crooked-tile mural display.

Carwiz Opens Car Rental Service In Panama

A Carwiz partner in Puerto Rico is taking on the Panama franchise with operations in the nation's largest airport.

Read More →
Ad Loading...
A world map with Flexways logo and new locations headline.

Flexways Opens 10 Locations Among Franchise, Affiliate Rental Networks

The integrated business model combines each operator’s local expertise with international standards to boost sales.

Read More →
Ad Loading...