Rewards programs are not just for frequent flyers and good little boys and girls anymore. Today’s workforce demands recognition and added rewards for performance above minimum expectations. Our society and the workplace are now part of the culture of immediate gratification and material rewards.
A generation fostered and reared by those of us who fit the Baby Boomer mold now dominates the workforce. This generation - “X”, “Y”, “Z”, or whatever – has taken the concept of recognition, and many other things, to a different level. Boomers have rewarded everything from good report cards to soccer goals to gymnastics stunts with significant, tangible rewards. One of the most asked questions during the childhood of today’s workers was, “What are you gonna give me if I do?” Boomers have responded in great ways with great giveaways and financial rewards. For our purposes the important point is that we recognize that for most of their lifetime today’s workforce has received something extra every time they performed above the accepted minimum.
The most powerful bonus reward is cash compensation. Periodic payment of cash (paycheck) bonus based on fair, equitable, and accurate measures provides the most possible motivation for the workforce. “What are you gonna give me?” effectively works in both interests with this type of bonus reward. Workers are able to increase their earnings based on performance over and above the expectation of the employer. The employer pays additional wages in exchange for exceptional performance. Employers are saying, “Give me productivity above expectations and you will receive wages above expectations.” The present workforce expects to gain from extra effort – as they have been conditioned to expect since early childhood. Some of your workers are not American and did not come of age with the comparably plush standard of living enjoyed in the United States. The power of rewards, particularly financial rewards, may however be even greater with these workers. The reasons for the motivation and the expected timing of the rewards may differ, but, those who are striving to improve their standard of living will respond to increased earnings potential with great fervor.
LABOR MANAGEMENT MEASURES
Fair and accurate measures must be established prior to the execution of cash bonus rewards. Those measures should be established through an Industrial Engineering process resulting in engineered productivity standards. Engineered standards provide equitable measures for all direct labor type jobs in the distribution center. Standards also account for the ease or difficulty of certain shipments, orders, or batches of work by incorporating multiple volume indicators into each measure of performance. In summary:
Productivity Standards must be established using an Industrial Engineering Process.
The standards must provide equitable measures for all direct labor jobs.
The Standards should account for the ease or difficulty of shipments, orders, or batches of work.
Supply Chain Experts can help your organization design an effective labor management system that creates a balanced cost/benefit relationship that will benefit your organization today and into the future.
Dr. Edward F. Knab BLOG
Productivity Constructs, Inc.
800 660 8718 office
949 413 7333 mobile
ed@edwardknab.com
www.productivityconstructs.com
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Dr. Knab is an academic practitioner and seasoned Global Supply Chain expert whose company, Productivity Constructs, is focused on driving cost and inefficiency out of the Global Supply Chain. Dr. Knab can be contacted for speaking engagements, coaching, or consultation at efk@productivityconstructs.com, ed@ewardknab.com or www.edwardknab.com.
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