Performance Based Incentives

Labor Performance offers a comprehensive and fully customizable pay for performance system.  Why incentivize?  Most sales organizations compensate performance based on some sort of incentive structure for revenue creation.  Why not do the same for employees for cost reduction?  After all, a dollar in cost savings is worth far more than a dollar in new revenue.* Labor Performance's incentive methodology does not pay out any incentive bonuses unless substantial value is created by employees.  By measuring what the direct labor cost is to produce a given service or item, you then have a baseline model to build an incentive program.  As an example, let's assume your organization can product 100 widgets per labor hour at a loaded direct labor cost of $20 per hour.  Each widget then costs in labor 20 cents to produce.  If an employee can produce 200 widgets in a labor hour, then that labor cost per unit is no 10 cents per unit and that employee created $10 of extra value through improved performance during that one hour.  Labor Performance allows you to measure, report, and incentivize based on that value creation and you can customize exactly how those bonuses are calculated and paid out. The end result is an employee that is very focused on their work in alignment with the goals of the company and motivated to produce at an optimal level. One criticism of production incentives is that quality suffers.  Labor Performance incorporates  comprehensive quality tracking and reporting metrics which can be configured into your company's incentive plan.  Additionally, supervisors can receive bonuses based on the performance of their work group. Labor Performance's team of experts can work with you, if desired, to design the optimal incentive program for your company's objectives. *  Assume a company profits 10% on sales.  $1 saved is equivalent to $10 in revenue.