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Author Topic: [-] Slow CI Drain Isn't Dead Yet (Part 2)  (Read 169 times)

Online schro

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[-] Slow CI Drain Isn't Dead Yet (Part 2)
« on: October 14, 2018, 04:00:52 AM »
As the last thread was unceremoniously closed, I have returned to my old ways of not paying my staff well and the exact same scenario has played itself out again in GW1. Let's recap -

March 1 2006 - Pay Raise Request ~3%
Quote
- High level management, new salary request: 19 200 USD (+3.23%)
- Middle level management, new salary request: 14 700 USD (+2.8%)
- Economics and finance, new salary request: 5 680 USD (+2.9%)
- Corporate communications, new salary request: 5 440 USD (+3.03%)
- Human resources, new salary request: 4 120 USD (+3%)
- Quality department, new salary request: 4 360 USD (+2.83%)
- Safety and security, new salary request: 4 800 USD (+3%)
- Customer services, new salary request: 3 220 USD (+2.55%)
- Flight operations division, new salary request: 5 680 USD (+2.9%)
- Technical services and maintenance, new salary request: 4 800 USD (+3%)
- Ground handling, new salary request: 2 580 USD (+3.2%)
- Route strategies department, new salary request: 4 120 USD (+3%)
- Pilots (large a/c), new salary request: 9 920 USD (+2.9%)
- Pilots (very large a/c), new salary request: 13 300 USD (+3.1%)
- Cabin crew, new salary request: 3 920 USD (+2.62%)


August 1 2006 - Pay raise Request (identical to prior), CI starts falling
Quote
- High level management, new salary request: 19 200 USD (+3.23%)
- Middle level management, new salary request: 14 700 USD (+2.8%)
- Economics and finance, new salary request: 5 680 USD (+2.9%)
- Corporate communications, new salary request: 5 440 USD (+3.03%)
- Human resources, new salary request: 4 120 USD (+3%)
- Quality department, new salary request: 4 360 USD (+2.83%)
- Safety and security, new salary request: 4 800 USD (+3%)
- Customer services, new salary request: 3 220 USD (+2.55%)
- Flight operations division, new salary request: 5 680 USD (+2.9%)
- Technical services and maintenance, new salary request: 4 800 USD (+3%)
- Ground handling, new salary request: 2 580 USD (+3.2%)
- Route strategies department, new salary request: 4 120 USD (+3%)
- Pilots (large a/c), new salary request: 9 920 USD (+2.9%)
- Pilots (very large a/c), new salary request: 13 300 USD (+3.1%)
- Cabin crew, new salary request: 3 920 USD (+2.62%)

December 1 2006 - Strike Warning (resolved fairly quickly)

CI continued to fall after the strike warning was resolved, it's currently down to about 95. Last time it bottomed out at 95 as I was bonusing the staff and getting their morale to near 100 started turning it around. Per usual, flight delays are within the usual accepted limits and no change have been made to the airline since it happened (as I've been traveling and sick). I should not have to spend 100's of millions of dollars again to fix this problem.
« Last Edit: October 17, 2018, 09:34:58 AM by Sami »

Offline Sami

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Re: Slow CI Drain Isn't Dead Yet (Part 2)
« Reply #1 on: October 14, 2018, 09:36:10 AM »
Did you raise the salaries in March? Or did nothing and copy-paste request was sent again 6 months later in August?

I would say it's probably not the salaries. But employee morale. Since with strike warning their morale is already low and even with the wages raised their morale is still lower than in March, and it takes time to recover even though they are happy with the salary itself.

Edit: Morale avg is at 72 now (Jun-07) which is reasonable. If it was higher, near 100, in March it might explain this.
« Last Edit: October 14, 2018, 09:39:34 AM by Sami »

Online schro

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Re: Slow CI Drain Isn't Dead Yet (Part 2)
« Reply #2 on: October 14, 2018, 11:48:03 AM »
I did not give a raise until the strike warning.

Typically when I wait until a strike warning, ci remains at 100 until the warning occurs and it goes down a few tenths at that time, or more, if the warning lasts for weeks or days. CI will return to 100 without issue at lower morale numbers after a strike warning when there is only one raise request.

I agree the root cause is morale as I fixed it (or accelerated the fix, to my perception) by boosting morale through bonuses until ci atarted to move back up (I believe the upper 80s level was the tipping point, but it's been a while). I have no idea what morale was in March....

Online schro

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Re: Slow CI Drain Isn't Dead Yet (Part 2)
« Reply #3 on: October 17, 2018, 03:14:12 AM »
August 1, 2007 - Pay raise requested again, raise given October 19, 2007. CI is still stuck at 95, no symptoms of delays showing.

- High level management, new salary request: 19 800 USD (+3.13%)
- Middle level management, new salary request: 15 100 USD (+2.72%)
- Economics and finance, new salary request: 5 840 USD (+2.82%)
- Corporate communications, new salary request: 5 600 USD (+2.94%)
- Human resources, new salary request: 4 240 USD (+2.91%)
- Quality department, new salary request: 4 480 USD (+2.75%)
- Safety and security, new salary request: 4 940 USD (+2.92%)
- Customer services, new salary request: 3 320 USD (+3.11%)
- Flight operations division, new salary request: 5 840 USD (+2.82%)
- Technical services and maintenance, new salary request: 4 940 USD (+2.92%)
- Ground handling, new salary request: 2 660 USD (+3.1%)
- Route strategies department, new salary request: 4 240 USD (+2.91%)
- Pilots (large a/c), new salary request: 10 200 USD (+2.82%)
- Pilots (very large a/c), new salary request: 13 700 USD (+3.01%)
- Cabin crew, new salary request: 4 040 USD (+3.06%)

Offline Sami

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Re: Slow CI Drain Isn't Dead Yet (Part 2)
« Reply #4 on: October 17, 2018, 09:14:59 AM »
Backup 05-Oct-2006:
   Current CI 99.94, history shows 100 [wk 39/06]
   High level management, $18600, requesting a payraise to $19 200, morale 74

With this setup the effect of staff numbers and their morale is positive (+0.3) to company image on the normal daily calculation.

Then there's the payraise calculation sequence that is separate and not run so often (on monthly basis, with some months having the requests sent out), and there we see that the staff morale will take a big hit (~-15pts) every time it is run since they have been waiting their raise for ages now. So morale will drop from 74 to about 40-45 by Dec/Jan-06. This does not change CI directly, a lower than 50% morale will start to hurt the image in this case.

What I also see that your marketing efforts are just on the edge. The normal marketing alone is not sufficient and CI will go down (-0.02 per week), but the positive effects from staff calculation will offset this. Added with effect of flights and their delays that change from day to day the end result can go either way since the overall "balance" between all these is very much on balance and small change can tip it either way.

Checking your current status: the staff is happy, CI has been 94.94 but is now climbing slowly and is at 95.14. Your current punctuality is bad, 62%, but cancellations at good level of 2%.


=> Can't see an error here. Suggest to add one (small) marketing campaign if you wish to keep CI steadily at 100.
« Last Edit: October 17, 2018, 09:34:43 AM by Sami »

Online schro

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Re: [-] Slow CI Drain Isn't Dead Yet (Part 2)
« Reply #5 on: October 17, 2018, 05:51:37 PM »
Cancellations are high due to the force majure event...

So, what you're saying, is that because I'm at the bubble on the marketing level, that the staff morale tipping point is a bit lower than it would be otherwise?

What I'm seeing when there has been 2 pay raise requests in the same year that I have to bring staff morale up to about 90 in order to maintain the 100 CI? Or does the Green/Yellow/Red color indicate the staff's happiness for this calculation? If so, CI was still going down when staff were lit up green.

Though, the on the bubble item solves the question about this from the first request... I just don't have any "small" campaigns that can be added - perhaps adding internet to one existing one would be enough?

 

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