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Piecerate article, a different slant

Employee Incentive Pay

Or, Piece Work, Piece Rate, Work Incentive, Incentive Program, Incentive Plan, Pay for Performance.

Motivate employee performance in return for a monetary reward.

Why do incentives work to everyone's benefit?

Incentives are effective employee motivators because most people go to work for money in the first place, and incentives offer an opportunity for them to increase their pay by their own efforts both physical and mental.

But incentives also benefit a company, who will pay closer attention to labor performance, to measure it and relate it not only to costs but also to output, and calendar performance, and customer service, and capacity. Good performance in these factors will benefit the company balance sheet, P&L, and corporate image.

Good company performance will also motivate employees indirectly because people want to feel that their contribution matters.

Incentives can be effective in any organization.

If you consider incentive pay in a manufacturing setting, that was the original use for incentives and still is as appropriate as ever. But service organizations, and construction firms, and warehouses, and labs and call centers are also prime candidates for incentives. incentives are quite effective for an individual, a team, or a group.

Incentives often reward output, or units produced. But any criteria may be selected, such as widgets built ot installed, or customer satisfaction, or first time quality, or phone calls, or tests processed, or block laid, or applications processed, or feet of cable, or cubic yards of concrete poured, or cartons shipped, or tests completed. The key is to create a measurement system to meet the client's objectives.

What's Next

If you need to correct a particular incentive or piecework problem, or update rates, or put a motivational plan into effect for the first time,

Click Here

to inquire. Tell me about the situation and we can explore some practical actions to accomplish your scope. Or, Jack Greene at 626-375-2468; either way, there is no cost or obligation.

If your idea is to motivate employee performance in return for a monetary reward,
Jackson Productivity Research Inc. can help you establish a fair and consistent system. We've done this before, and can apply our experience to generate a successful application for you, quickly and objectively.