Anthony
Marlene Frasca
Human Resource Management
CarMax Project CarMax is a relatively new company in an industry that basically did not exist before they were introduced and has become the United States largest used-car retailer changing the way cars are sold. The company is a Fortune 500 company and has been listed as “100 best companies to work for” ten years in a row (Forbes).
Background and History of CarMax:
Between the year 1990 and 1991, Circuit City executives Rick Sharp (CEO) and Austin Ligon (Vice President of Corporate Planning) led an effort to identify a new retail opportunity to extend Circuit City's growth into the next decade. They looked for a large retail category with no significant national competitors and unmet consumer needs. Extensive research showed an excellent opportunity existed in automotive retailing, especially in used cars. In December 1991, the Circuit City board committed $50 million to fund the development of the concept, as well as several prototype stores. In 1992 they tested the idea with a broad range of focus groups, where consumers said what they did not like about car shopping. The CarMax concept was thus refined and a business plan was developed. On September of 1993, Rick Sharp and Austin Ligon opened their first auto superstore, CarMax, with an inventory of 500 used vehicles. Their first car sold was a used 1993 Jeep Grand Cherokee. A year later the two would open another CarMax in Raleigh, North Carolina and a year after that in Atlanta, Georgia. In June of 1996 the two announced a five-year rollout plan, under which they expected to be operating 80 to 90 superstores in 45 of the nation's top 50 advertising markets by calendar year 2001. The plan called for the opening of 15 to 20 superstores per year. The plan was made more ambitious by the entry of AutoNation and Sonic Automotive, into the used car auto superstore arena. During the same year Rick Sharp and Austin Ligon launched carmax.com. The website includes a proprietary vehicle search feature with which consumers can view information on price, make, model, mileage, and features for CarMax's entire inventory. As of January 2014, CarMax has been named one of the “100 Best Companies to Work for” by FORTUNE magazine for the tenth consecutive year.
Mission Statement and Values:
CarMax’s mission statement is as follows “To provide our customers great quality cars at great prices with exceptional customer service”(Company Information pg1). CarMax’s mission statement fits their company perfectly, as well as follows their business statement which consist of “offering tens of thousands used cars across the country” this allows the consumer to have multiple options. “Every car we sell has a low, no-haggle price” which helps consumers get the best price for their car without having to negotiate with a sales person. The vehicles offered are “superior in quality” which means they have met CarMax’s high standards quality check so the consumer does not have to worry that once they drive off the lot their car is going to break down. Also, CarMax will buy your car from you whether you bought a car from them or not, ensuring a great customer experience as well as great customer service (Company Information pg2)."

CEO Thomas J. Folliards has been CEO of CarMax for six years and has worked for CarMax for nineteen years. At age 47, Forbes Magazine listed him #24 within the retail market. Mr. Folliards salary is $1.06 million dollars a year with a $2.19 million dollar bonus. Folliards total compensation is $5.75 million, which includes stock options and employee benefits. Folliards has been a crucial factor in the company since the beginning; he worked as a senior buyer and later became director of purchasing in 1994. In 2001, he was promoted to Executive Vice President of Store Operations for CarMax before being elected CEO on June 21, 2006.
Positions at CarMax / Salaries
At any CarMax there are numerous positions that include, but not limited to, Accounting, Auction Services, Audit, Background Screening, Business Operations, Construction and Facilities, Corporate Management, Customer Relations, Environmental Health and Safety, Human Resource, IT, Legal, Loss Prevention, Marketing, Merchandising, New Car Merchandising, Operational Excellence, Payroll, Procurement and Supply Services, Real Estate, Service Operations, Strategy, Transportation and Logistics, Training and Treasury are some of the numerous jobs CarMax offers (Jobs at the CarMax Home Office pg.1). Below is a list of the average salaries employees of CarMax make.
CEO: $1,086,154
Sales Consultant: $30,750
IT Associate: $75,153
Manager: $69,500
Buyer: $64,441
Human Resource
Department: $54,500
Business Office
Associate: $11.77/hr.
Career Webpage On the career page of CarMax’s website, the viewer is welcomed by three diverse faces smiling and a slogan that reads “CarMax is Different | the way your career should be”. Under the three smiling faces is a large yellow section, advertising that CarMax is hiring automotive technicians and sales consultants. Under each of the headers for the job titles are links for potential employees to apply for the job via the Internet. Also on the page, there is a section for store positions, home office opportunities and financial careers at CarMax. The image that CarMax projects on their career page is that they are different and consequently they welcome people from diverse backgrounds. The types of employees CarMax’s career page projects are clean-cut, well-mannered, enthusiastic people that love what they are doing.
Benefit Programs CarMax offers its full time employees a number of different benefits. Full time employees at CarMax have health benefits that include a medical plan, dental plan and vision plan. CarMax utilizes a consumer-driven health plan, allowing them to give their employees multiple medical options as well as a variety of other benefits for a low price. Along with health benefits; full time employees receive ten days of paid vacation during their first six years of working at CarMax: employees who have worked for seven years or longer receive fifteen days paid vacation; and anyone who has worked for fifteen years or longer receive up too twenty days of paid vacation. All employees are eligible for up to six paid days if they become sick and are allowed to take one personal day a year. Other benefits employees are entitled to are retirement and financial planning benefits that include stock options and a 401(k) plan, as well as additional wellness benefits that include employee assistance programs, tobacco cessation assistance and a weight watchers program (CarMax Salaries and Benefits in Richmond, VA).
Training Programs
On average, each store associate completes at least thirteen online or classroom courses, totaling more than 57 hours of training per associate. Store associates receive structured, self-paced training that introduces them to company policies and their specific job responsibilities. CarMax also provides comprehensive, facilitator-led classroom training courses to sales consultants, buyers, automotive technicians and managers. All sales consultants receive extensive customer service training both initially and on an ongoing basis. Buyers-in-training undergo a 6 to 18 month apprenticeship under the supervision of experienced buyers, and they generally will assist with the appraisal of more than 1,000 cars before making their first independent purchase. CarMax utilizes a mix of internal and external technical training programs in an effort to provide a stable future supply of qualified technicians. Reconditioning and mechanical technicians attend in-house and vendor-sponsored training programs designed to develop their skills in performing repairs on the diverse makes and models of vehicles CarMax sells. Technicians at CarMax’s new car franchises also attend manufacturer-sponsored training programs to stay up-to-date of current diagnostic, repair and maintenance techniques for those manufacturers’ vehicles. Additionally, new managers attend an intensive weeklong workshop at the home office where they meet with senior leaders and learn fundamental CarMax management skills (CARMAX(KMX).
Discrimination / Wage and hour disputes.
CarMax has not had any known discrimination lawsuits against them although they have had a wage dispute. The wage dispute consisted of employees in California who were “buyers”. A buyer’s job is to look for potential inventory. This causes them to drive around for hours looking for potential new vehicles to ship to the numerous CarMax’s around the country. The lawsuit that was brought against CarMax was filed in California and alleged that CarMax was not paying overtime according to California laws. CarMax challenged the lawsuits; both parties settled out of court for an unsaid amount of money (Los Angeles Employment Lawyer: CarMax Comes Out on Top in Employment Lawsuit).
Safety and Risk Management
In any automotive business there is always risk of injury; to prevent injuries from occurring employees are put through rigorous training exercise in order to prevent these possible injuries from occurring. Employees of CarMax that are more prone to injuries are the technicians and mechanics that work on the cars throughout the day and year. These injuries include but are not limited to, falling from ladders, stairs, elevated platforms, falls from wet, slippery or greasy floors, injuries from faulty equipment such as lifts, hoisting equipment, and cars falling from lifts. Other injuries include crushed toes from heavy objects falling, eye injury and, injuries caused by rotating parts of machine tools. Other employees who have possibility for risk on the job are the sales men and women. Other risk employees are prone to are ones that for the most part they have no control over. These risk are usually when they take potential buyers out for test drives. While on test drives they can be in a car accident which may be the fault of another driver, or cause an accident if the client who is driving the car is not paying attention.
Corporate Social Responsibilities * The CarMax Foundation was established in 2003 to provide a means for CarMax's charitable contributions. Since establishing the CarMax Foundation in 2003, nonprofit organizations have been awarded more than $6.62 million to help the communities where CarMax associates live and work. The foundation seeks to promote automobile passenger safety and improve the communities in which CarMax associates live and work. The foundation funds programs that supports the local community as well as charities that promote education among the youth. The Regional Giving Program provides annual grants to qualifying organizations with programs focused on education and youth leadership for children and families in the seven regions where CarMax has stores. The Richmond Giving Program improves opportunities for children and families in the Richmond, Va., area and promotes education and leadership through athletics, arts, and cultural programs. The Matching Gifts Program matches personal contributions of time and money made by CarMax associates to public charities of their choice. The Volunteer Program encourages Associates to participate in team-building activities and donates a minimum of $500 to aid organizations in their communities (Company Information pg2). * Future Plans CarMax plans for the future are already underway. The company has announced that by June of 2014 they will be opening 17 new stores across the United States. These stores will be in states that include New York, Alabama, Washington, California, Delaware and new locations throughout Pennsylvania. The company also has plans to open more locations that partner with automobile companies. This will allow CarMax to offer brand new cars for a no hassle guarantee thus allowing CarMax to change the way in which cars are sold once again. Along with the expansion of new stores and new business models the company is looking into ways to make the car buying process more convenient. CarMax has found that online car shopping is one of the top ways in which their customers are looking at cars. CarMax is looking to add a feature in which if a customer finds a car they might be interested in buying they can schedule an appointment where a sales person will transport the car to their location whether it is home, office, etc. This approach allows the customer to inspect and test drive the car without ever having to come to the nearest CarMax location.
From the research, I have concluded that CarMax would be a great company to work for. The employee satisfaction rating is great for a company of its size and employees have great benefits as well as opportunities to move forward in the company. I enjoy everything about cars and CarMax does a great deal of business in the automotive industry. I could see myself working for CarMax but not for the long run. I believe working at CarMax would give me a great deal of exposure and experience in the automotive field of business, which would allow myself a better opportunity of pursuing a career in the automotive industry.

Work Cited

"Company Information." Jobs at the CarMax Home Office. N.p., n.d. Web. 16 Apr. 2014

"Company Information." CarMax Benefits. N.p., n.d. Web. 16 Apr. 2014.

"CarMax Salaries and Benefits in Richmond, VA." Glassdoor. N.p., n.d. Web. 20 Apr. 2014
"Thomas J. Folliard." Businessweek.com. N.p., n.d. Web. 20 Apr. 2014.
"CARMAX (KMX)." Training. for. N.p., n.d. Web. 19 Apr. 2014
Forbes. Forbes Magazine, n.d. Web. 21 Apr. 2014.

"Los Angeles Employment Lawyer: CarMax Comes Out on Top in Employment Lawsuit." Los Angeles Employment Lawyer: CarMax Comes Out on Top in Employment Lawsuit. N.p., n.d. Web. 20 Apr. 2014.