Incentive-Based Pay

Rewarding Superior Performance with Activity-Based Compensation

When it comes to the overall approach to structuring incentive programs, companies can create either individual or team-based rewards, or a combination of the two. 4SIGHT can help quantify the benefits of team incentives by fostering group cohesiveness and cooperation, facilitating a flexible workforce, and developing an overall process that is subject to fewer measurements. We can also quantify individual incentives which can motivate goal-oriented employees to perform at a higher level, especially if there is a reward that can be earned multiple times.

There are many pitfalls when implementing a pay-for-performance program. Using a trusted partner to navigate the landmines can help ensure your program is successful. Ultimately, an incentive program can be the largest driver of workforce performance because it is directly tied to an employee’s pay. It also encourages the entire organization to adhere to best practices, maintain their engineered labor standards, and continue to improve coaching and feedback exercises across the workforce. At the end of the day, a happy, motivated workforce will have far-reaching benefits when it comes to the efficiency of overall operations.

  • Leverage the latest best practices
  • Develop communication and accountability plans
  • Implement engineered labor standards (ELS)
  • Implement incentive programs for individuals and teams 
  • Evaluate incentive plan options, such as:
    a. Scanlon
    b. Rucker
    c. Improshare
    d. Custom

Other Workforce Services

Engineered Labor Standards
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Engineered labor standards (ELS) allow you to effectively evaluate performance for your associates and supervisors against multivariable standards. These represent the level achievable by the average trained worker, working at a reasonable pace over the course of a day. By factoring in the variability that affects each task, having ELS in place removes the excuses that can result when expectations aren’t met. These standards also help identify what causes your warehouse team to underperform.

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Labor Management Systems
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4SIGHT’s professional expertise with Labor Management System (LMS) implementations has enabled our clients to save millions of dollars. We know from experience that your typical labor management/pay for performance project is really a transformational change project. All of the Tier 1 software providers have robust functionality, but their software alone is not the key to a successful project. Having worked with each of the top Supply Chain Execution software providers, 4SIGHT brings you unique insight about the strengths of each platform.

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Workforce Optimization
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Your people are the most important assets in your supply chain operation—and often your biggest variable. Effectively optimizing your workforce depends on having the right blend of training, performance standards, technology, change management, and motivation. Choosing and implementing a world-class Labor Management System (LMS), is the most effective way to achieve fast ROI while improving your operation’s performance.

Start your optimization efforts by focusing on your management team: Train your supervisors to create a win-win situation by teaching the skills they need to coach the associates they manage and emphasize positive behavior before taking corrective action. The real benefit of a labor solution is having management and associates work together to drive sustainable productivity and performance gains. Developing an accountability plan with incentive-based pay is a highly effective way to sustain the improvements your new best practices generate.

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