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O'Reilly Automotive Inc. Message Board

  • samwillinstaf samwillinstaf Jan 1, 2013 11:54 AM Flag

    Not doing so well?

    Long term I think it's still a small win, I do hear some skuttlebut that leads me to believe ORLY is cutting corners how ever they can to show better profits after the acquisition. In the past several months key players have steped down and accrepted lesser positions and either not being replaced or replaced with lesser paid as others in the field are activly seeking new employment. It's no secret that ORLY is not a preferred employer due to wages but in the past took care of it's people, That is getting lesser as the company grows but they don't seem to be compensating the "we care" decline with wages. While Corp. Managment and above get there six figures and stock options they do very little for the soldiers in the support roles, offices and on the front lines, In fact it has been reported that Senior VP's in the company are directing leaders to limit yearly raises to 2% while other leaders are saying that that is all the budget allows due to the economy, thus sending mixed signals. For employees that make an average of 8 an hr to entry level saleried employees with no stock options, that is no more than a reason to look elsewhere and abandon there loyalty, but with the economy being what it is it could be that ORLY is just taking advantage as there profits grow quarter after quarter knowing that it's workers have little recourse, (for now). I predict in the future you will see a moderate exidus as these desissions from corprate managment can only be more inviting to Unions seeking new members and could use this as an "in". I also predict in 2013 you will see a shift in the bonus programs and stock options that ORLY always used as an incentive to get new workers but does very little to retain them. That being said, with these desissions being made on employee wages at a time America is hurting the most with healthcare increases, new taxes, and cost of living increasing by 4.75% a year ORLY workers will be making less than they ever have at a time they need it the most and will only invite the competition to swoop in and recruite key members with little more incentive than offering a living wage. To wrap up to the beginning, this could just be growing pains and maybe not thought through by senior managment, so I stick to my long term win, I always look at retention, success and attitude of employees as well as the "pulse" of the stores to gage a companies condition, so it does make me wonder. Is ORLY really doing ok?

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    • Good points, but you left out another reason to watch, In another desperate attemt to create new revenue and lower the morale of the workers, In addition to anual pay decreases they hand out in 2013 with there 2% max stance they made substantial decreases to the team member discounts in 2012. In alot of cases there shop customers get a better discount than employees on some items. I know they keep showing groath but at what cost? These tricks wont work for long to increase numbers for there investors and the cost to re train new people once people start leaving the company will for sure out way these tactics.

      • 1 Reply to billsmonroe
      • if you are an orly employee which i assume you are here's the new one in the field. your annual raises are CAPPED at 2%. 2013 pay increases are subject to challenges and boost and RPM'S.and if you don't produce you will receive NO applies to middle mgr and down.i sold all my stock and moved it elsewhere.this stock in my opinion has plateaud and your investments can do better elsewhere.also if you get a chance look at incentive or commission chart.the magic number is 19000.notice YOUR numbers go that insentive or what.if money and profits are what its all about, behind the counter employees are in for a hard row to hoe. hang in there and do what you have to do.....

        Sentiment: Sell

    • your analysis is pretty much right on point.i myself try to stay informed on internals.rumor has it all new hires (not essential) will be put to work part time 28 hrs or less.payroll is being cut acrossed the board full and parttime.S&P status stockholders and profit is what its all tibet i track the most is employees average about 38% while parts mgr turn is approx 18%.BUT ITS A JOB......

      • 1 Reply to speezman57
      • Your note on turnover is correct, That is something I look at as well, With the cliff deal, Payroll tax not being extended and rising healtcare means a reduction in pay with with the new raise structure. But I belive you last statement says it all, "BUT ITS A JOB......" I believe if ORLY focused on keeping good employees, being a preferred employer and paying atleast industry standard more would be saying ITS A CAREER and I don't see how that couln't not be a win-win.look for turnover to exceed 40% in 2013, Now that does tell you a lot.

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