Hertz 2009 Annual Report Download - page 5

closed under performing locations, and we operated
with fewer resources. Employees worked reduced hours
and we temporarily reduced salaries and cut other
compensation programs. We communicated our decisions
and rationale clearly, and employees rallied together and
performed exceptionally well in difcult circumstances.
Given the fact that there were fewer employees working
harder than ever with temporarily reduced compensation,
why did morale improve? Part of the answer is the character
of Hertz employees who are loyal and dedicated to the
Company in good and bad times. Also, management
communicated openly about the challenges we faced
and how we would
recover. We backlled
resources wherever
necessary to provide
good customer service
and to relieve employee
stress. All sacrices
were shared company
wide and we delivered
on our unequivocal
promise to restore
compensation programs
and resources as quickly
as the business began to
rebound.
Additionally, we
continued to invest in our
employees last year. The
following are just a few of
the long-term, resource-
efcient investments in
our people:
n A performance management and employee development
system that links compensation to performance and sets out
clear, individualized development plans.
n New learning and mentoring programs.
n Accelerated program/process management training
programs to enhance skills.
n Expanded Employee Stock Purchase Program.
As a result of these and other initiatives, employee
satisfaction in late 2009, as measured by our internal
survey with over 85% employee participation, improved
to year-end 2007 levels.
Customer Satisfaction
Customer satisfaction remained a focus throughout
2009, and we invested in technology and acquisitions
to improve the customer experience and reach a wider
range of potential renters. By year end 2009 customer
satisfaction had reached an all time high for several
reasons:
n We freshened the car rental eet in the second half
of the year, adding 80,000 new vehicles in December
and sold high mileage vehicles as the used car market
improved.
n We added staff at locations where demand improved.
n We reviewed service levels at under-performing locations
on a weekly basis and
implemented specic
improvement plans. We
rewarded locations which
maintained the highest
sustainable customer
satisfaction standards.
n We implemented a new
program we call “The
Lighthouse” at our HERC
location in Oklahoma
City and at three airports
with the most difcult
operating conditions —
Chicago O’Hare, Boston
Logan, and San
Francisco — to completely
modernize facilities and processes that
touch our customers. We will implement The
Lighthouse at more than 20 additional locations
in 2010.
n We added new products and services to meet
the needs of a wider array of customers, and
we acquired Advantage Rent A Car to serve
the growing price-focused leisure business.
n We introduced customer-centric technology
innovations to speed and enhance the rental
experience.
n We acquired Eileo, the worldwide leader
in car sharing technology, to enable Hertz
to expand our competitive edge in this
technology-driven business.
n We continued to expand our ability to
service local and international customers. We
now operate in 146 countries from approximately 8,100
locations, and we have plans to add over 150 off-airport
locations in 2010.
We have developed an operating culture focused on
attaining continued improvement in operations and support
functions. We believe 2010 will provide greater revenue
growth opportunities, many of which were developed
during the recession. Our core businesses are poised for
tremendous revenue and prot growth, we believe, with just
a little help from a global economic recovery. The operating
leverage we will generate as the business grows, on what
we believe is the lowest cost base in the car and equipment
rental industries, should result in signicant shareholder
value creation. Creating that value will be the senior
management team’s top priority throughout 2010.
Mark P. Frissora
Chairman of the Board and Chief Executive Ofcer
Hertz Global Holdings, Inc.
Our Core Businesses…
are poised for tremendous
revenue and prot growth,
we believe, with just a little
help from a global economic
recovery. The operating
leverage generated as we
grow the business, on what
we believe is the lowest cost
base in the car and equipment
rental business, should result
in signicant shareholder
value creation.
3
Mark P. Frissora
Chairman of the Board and
Chief Executive Ofcer
* Indicates a Non-GAAP measurement presented and reconciled within the section of the Annual Report
to Stockholders entitled “Denitions and Non-GAAP Reconciliations,” which follows the SEC Business
and Financial Information in this Annual Report.