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Prepared by:
 Group 4 Section S3
Abhishek Sharma FT13300
Arjun Choudhry FT13312
Garv Sharma FT13325
Irene Eltham FT13337
Mrityunjay Arya FT13350
Ramachandran FT13362
Sonali Das FT13374
Vijaykumar Bale FT13386
•Founded in 1994 by Clive Beddoe, Tim Morgan, Donald Bell, Mark
Hill
•Low cost carrier
•Differentiator : Caring attitude towards passengers(guests)
•Mission Statement : To enrich the lives of everyone in WestJet’s
world by providing safe, friendly and affordable air travel.
•By 2003, Westjet captured 25% of the domestic Canadian market
•By 2007, revenues exceeded USD 2 Billion and earnings were USD
193 MM
•The employee grew by seven times in 2008 in comparison with 1998
• In 2008, awarded the title of Canada’s most Admired
culture for third consecutive year.
Cultural Values
                    Align the interest
                   of employees with
                      the company



                 Fun, friendly & caring




             Appreciative of people & guests




                  Positive & passionate




                 Commitment to safety




          Honest, open & commitment oriented
Problem Statement
 How to build and maintain the high-engagement culture
  while moving towards growth?
 How to resolve the compensation issues with the pilot’s?
Situational Analysis
 In 2008, West Jet was one of the few profitable airlines worldwide.
 Approx. 6000 employees at the end of 2008, 7 times more than it did in 1998.
 36% of domestic market share compared to Air Canada’s 57%.
 Impending bankruptcy filing by Air Canada coupled with WestJet’s efforts to
  achieve market dominance.
 Outsourcing of Employees at International Destinations.
 Expiring Contracts of the Pilots.
 Stalled negotiations between management & pilots for new contract regarding
  pay structure.
Recommendations
 For maintaining the high-engaged culture :
   “Investment in Employees Begin with Recruiting” : Hiring
    Employees who are compatible with the WestJet’s Culture.
   Replacement of Contracted employees at International destinations
    with WestJet’s own employees or alternatively conduct an extensive
    immersion program for contract employees.
   Enhance employee engagement by facilitating trainings in :

                                          •   Shaping Attitudes & Behaviors (Yes
       Leadership                            Bank)
       Cross Functional     Leading to   •   Capacity Building
       Mentoring Programs                •   Performance Improvement
                                          •   Talent Management
                                          •   Leadership Development
Recommendations
 To resolve compensation issues with the Pilots:
   Using the “TRUST PAY” concepts: HCL went against industry
    accepted practices of having 30% of employees pay at risk and paid
    full salary. Entrusting employees with meeting their goals.
   Since WestJet is not facing any profitability issue, they need not
    reduce the compensation structure of the pilots just to be in line
    with the industry practices.

IMPACT
   Paying Pilots above industry standards not only increases retention
    but also increases responsibility and loyalty towards the company
    objective of customer satisfaction.
Thank You

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S3 group4 west_jet

  • 1. Prepared by: Group 4 Section S3 Abhishek Sharma FT13300 Arjun Choudhry FT13312 Garv Sharma FT13325 Irene Eltham FT13337 Mrityunjay Arya FT13350 Ramachandran FT13362 Sonali Das FT13374 Vijaykumar Bale FT13386
  • 2. •Founded in 1994 by Clive Beddoe, Tim Morgan, Donald Bell, Mark Hill •Low cost carrier •Differentiator : Caring attitude towards passengers(guests) •Mission Statement : To enrich the lives of everyone in WestJet’s world by providing safe, friendly and affordable air travel. •By 2003, Westjet captured 25% of the domestic Canadian market •By 2007, revenues exceeded USD 2 Billion and earnings were USD 193 MM •The employee grew by seven times in 2008 in comparison with 1998 • In 2008, awarded the title of Canada’s most Admired culture for third consecutive year.
  • 3. Cultural Values Align the interest of employees with the company Fun, friendly & caring Appreciative of people & guests Positive & passionate Commitment to safety Honest, open & commitment oriented
  • 4. Problem Statement  How to build and maintain the high-engagement culture while moving towards growth?  How to resolve the compensation issues with the pilot’s?
  • 5. Situational Analysis  In 2008, West Jet was one of the few profitable airlines worldwide.  Approx. 6000 employees at the end of 2008, 7 times more than it did in 1998.  36% of domestic market share compared to Air Canada’s 57%.  Impending bankruptcy filing by Air Canada coupled with WestJet’s efforts to achieve market dominance.  Outsourcing of Employees at International Destinations.  Expiring Contracts of the Pilots.  Stalled negotiations between management & pilots for new contract regarding pay structure.
  • 6. Recommendations  For maintaining the high-engaged culture :  “Investment in Employees Begin with Recruiting” : Hiring Employees who are compatible with the WestJet’s Culture.  Replacement of Contracted employees at International destinations with WestJet’s own employees or alternatively conduct an extensive immersion program for contract employees.  Enhance employee engagement by facilitating trainings in : • Shaping Attitudes & Behaviors (Yes  Leadership Bank)  Cross Functional Leading to • Capacity Building  Mentoring Programs • Performance Improvement • Talent Management • Leadership Development
  • 7. Recommendations  To resolve compensation issues with the Pilots:  Using the “TRUST PAY” concepts: HCL went against industry accepted practices of having 30% of employees pay at risk and paid full salary. Entrusting employees with meeting their goals.  Since WestJet is not facing any profitability issue, they need not reduce the compensation structure of the pilots just to be in line with the industry practices. IMPACT  Paying Pilots above industry standards not only increases retention but also increases responsibility and loyalty towards the company objective of customer satisfaction.