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Measuring performance accurately is both an art and a science. It is important that you differentiate between various products or services when you evaluate the direct labor contribution. Because of the challenge to do this, most companies will average the work over a period of time like a week, month or quarter. This is fine for estimating direct labor costs, but it is ineffective when incorporated into a performance accountability and incentive program.
Labor Performance has developed several powerful, yet simple to use tools to help companies identify their direct labor costs across every product or service provided. The end result will be that an employee’s performance measurement, for an equal amount of effort and skill, will vary less than 5% across all the various processes they perform throughout the day. This enables a company to create Fair Labor Standards for all work done and eliminates the possibility of favoritism on work assigned by supervisors.
The daily production data is then input into Labor Performance and detailed daily and historical performance reports are readily available for review.
Some of the specific reports are:
- Daily Production Reports – gives a detailed breakdown of each task completed by the employee and a summary of his or her results for the day, including bonuses earned.
- Daily Performance Report – Lists each person’s daily results, the person’s lifetime average productivity and an adjusted goal for the employee based on length of employment. This report helps the Supervisors identify which employees are not meeting goal and adjusts standards for new hires.
- Daily Non-productive Work – This is a breakdown of all non-productive hours logged in the system. The Supervisors should be rewarded for minimizing these hours. Although non-productive hours do not impact an employee’s ability to achieve bonus, any bonus they do earn for the day does not include the hours they spent on the non-productive work. Therefore the employees, the supervisors, and the company all benefit from reducing these costs.
- Dashboard Report – This report provides management with a summary of daily productivity and labor costs by shift.
- Weekly Production Reports – Same as Daily, but shows an employee’s production for the week
- Weekly Bonus Reports – Gross and Net bonuses earned by each employee for the week. Net bonuses may be higher if there was overtime (to comply with state law) or lower if the employee had an unexcused absence or quality issue.
- Individual Productivity Reports – for any specific time period on an as needed basis for employee reviews or counseling.
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