work compensation

work compensation

Our incentive program for hourly employees is graduated. If they hit X production, they receive $.50 per hour, up to $2.00 an hour for the best performance. This works great for us, as the employees bought in to the whole process and were able to very specifically relate their performance to their bonus amounts. I would suggest the concept of a graduated system, which seemed to better motivate them to improve their performance and reach the highest amounts.

The payroll part is fairly straightforward. Incentives are given on a quarterly basis. Its pretty simple to total their hours for 12 weeks, and figure the amounts they are due.

The only advice I can give you is that you need to keep making the presentation of the incentives a big deal every quarter. After a few years, its become kind of hohum around here when they just get $1.00 for every hour they worked.

posted by raisingsand at 7:38 AM on February 24, 2009

I understand wanting to reward attendance, but to you really want to incentive it? If youd got a super sick person who definitely shouldnt be at work, but knows that if he doesnt come in not only does he lose his days pay but $0.35 for every hour hes already worked assuming perfect attendance already, hes going to come in, make everyone else sick, and really reduce production.

I wouldnt make it an allornothing thing. For example, if they hit 97.5% attendance averaging 1 sick day per 2 months, they get rewarded at the max level. If they hit 95%, they get rewarded at a lower level. That sort of thing.

posted by cgg at 7:50 AM on February 24, 2009

I dont see why you have to make it affect their hourly pay. Why not make it a bonus amount paid at the end of each quarter or whenever, and the bonus is $x hours_worked? Then its just a variable amount bonus, which is pretty common.