The Power of Pay-For-Performance with IncentRight
The primary tasks in a distribution center are to receive goods, transport goods to pick slots, pick, load, and ship product. The one commonality between all of these functions is the employees. Without quality labor, warehouses cannot function efficiently.
Distribution centers want to maximize labor efficiency. One way to improve productivity in a warehouse is to implement a Pay-For-Performance program. When employees have more impact on their take home pay, they are more likely to work faster. Employee incentive programs will reduce turnover and increase morale and loyalty.
Effective PFP policies need to be clearly understood by both management and employees, consistently applied across all employees, and easily calculatable.
According to Steve Stomel, CEO of ProCat Distribution Technologies, “Warehouses can increase productivity by at least 10-20% and in some cases up to 30% by implementing a Pay-For-Performance program”.
ProCat recently developed its Pay-For-Performance modeling tool. IncentRight, a simple and straightforward solution to reward workers for achieving productivity targets, is designed to allow management to set different incentive pay amounts by pick area. With IncentRight, the order picker can be measured on either picks or lines. Two key management judgements are needed for the IncentRight calculations: (1) target pick rate by area and (2) incentives for achieving a targeted pick rate. The IncentRight application also comes with a reporting suite, increasing management oversight and analysis.
IncentRight is an extension of ProCat’s PickRight solution. Since IncentRight uses the PickRight platform, achieving high accuracy is already addressed as part of the pay-for-performance solution. As a result, the IncentRight system was designed to drive increases in through-put or productivity.
Contact ProCat Distribution Technologies today to speak with us about IncentRight and Pay-For-Performance. You can reach ProCat at (866) 776-2285 or through our Contact Us form.