| Incentive schemes have been much criticised in recent | | | | employee representatives?24. Will you be undertaking |
| years, and it is quite true that some schemes have | | | | the training of any employee representatives in work |
| been singularly unsuccessful. Their failure, however, has | | | | study techniques?25. Are the mechanics of your |
| often been the result of inadequate planning, rushed | | | | scheme simple enough to enable all employees to fully |
| introduction, or not thinking through such a scheme | | | | understand how their pay is calculated?26. What |
| properly. These points should not be used to generally | | | | standards will you use to evaluate performance to |
| condemn other more successful applications.Whether | | | | ensure that a proper balance is maintained between:a. |
| any particular incentive scheme achieves long term | | | | Increased outputb. Maintaining qualityc. Efficient use of |
| success depends initially on the thoroughness with | | | | equipment or materials?27. How will you relate |
| which the current working situation is reviewed, hence | | | | payment to performance? e.g. in direct proportion to |
| the need to re-look at some key Action Points, and | | | | output?28. On what length of time will you base |
| question why you need an incentive scheme.1. | | | | payment? e.g. hour, shift, week?29. Will you gear the |
| Increase in earnings for employees? | | | | scheme to the individual, working group, department or |
| 2. Increase in output? | | | | factory?30. Will you apply the scheme in some way to |
| 3. Improvement in quality? | | | | direct as well as indirect personnel? If not, how will the |
| 4. Better mobility of labour? | | | | problem of increased or decreased differentials be |
| 5. More efficient methods of working? | | | | solved?31. Will official disputes concerning the operation |
| 6. Improvement in safety? | | | | of the incentive plan be handled through the normal |
| 7. Higher housekeeping standards? | | | | negotiating and disputes machinery?32. What will be |
| 8. Reduction in absenteeism? | | | | the principles governing payment for 'waiting time' or |
| 9. Reduction in labour turnover? | | | | unmeasured work?33. Will any scheme you introduce |
| 10.Reduction in overtime working?Any of these points | | | | be on a gradual basis or do you intend to apply it to all |
| or a combination, will determine how you introduce and | | | | appropriate sections at the one time?34. How will you |
| communicate such a scheme. The following questions | | | | calculate holiday pay for pieceworkers?It's notoriously |
| will act as an "aide memoire".11. Does the work | | | | difficult to put together an incentive scheme that |
| necessitate skilled, semi-skilled or unskilled labour?12. | | | | motivates all of its targets, and that continues to do so |
| Can individual skill be fully applied when manipulating | | | | over an extended period. You may be looking to get |
| machines etc. or is the employee's quantity and quality | | | | the most from your staff by increasing motivation, |
| of output regulated to a large extent by factors | | | | improving morale and encouraging efficiency.Incentive |
| outside his/her control?13. Does the level of output | | | | awards are a way of rewarding employees and |
| remain steady throughout the year or is it subject to | | | | others with cash, goods or holidays rather than |
| seasonal variations?14. Is production organized on a | | | | increases in pay. There are Two Basic Types Of |
| process flow line, batch or jobbing basis?15. Have your | | | | Incentive Scheme, Financial and Non-FinancialSchemes |
| current production methods been recently reviewed | | | | can vary from national promotions to a prize raffle |
| for maximum efficiency?16. Is any new machinery or | | | | held by a small firm. |
| plant, to be introduced in the near future, likely to upset | | | | Rewards of goods or holidays will usually involve the |
| the standard upon which an incentive scheme might | | | | use of a voucher.Awards may be linked to sales |
| be based?17. Have you sufficient qualified staff to | | | | performance, good timekeeping, safety or production |
| introduce an incentive scheme, or alternatively, have | | | | records, or may involve participation in a lottery or |
| you one qualified employee who is capable of training | | | | prize draw.There should be increasing consistency in |
| other staff in work study techniques?18. Once the | | | | the ways that reward, recognition and incentives are |
| scheme is introduced, will you have the necessary | | | | offered to customers, staff and distributors. |
| number of staff to be able to keep it under constant | | | | Participants should always have the power of choice, |
| review, and to introduce modifications where | | | | enabling them to self-target and work towards things |
| necessary?19. Will the present staff in the wages | | | | that are exciting or important to them.Incentives that |
| department be able to cope with bonus calculations | | | | are always won by a small group of high performers, |
| etc. without additional help?20. Are other parts of the | | | | breed more resentment than motivation, while the high |
| organization such as Production Control, Maintenance, | | | | performers themselves soon become bored with the |
| Distribution etc. geared to cope with the increased flow | | | | repetition of holidays, and activities that are open to |
| of materials and output that are likely to result?21. Are | | | | them.The aim of an incentive scheme is to improve |
| your present channels of communication, both formal | | | | the performance of your business, whether it is your |
| and informal, capable of coping with the dissemination | | | | employees, customer's or supply chain.As a result the |
| of detailed information to all employees, on the | | | | most successful incentive schemes tend to be those |
| workings of any proposed incentive plan?22. Have you | | | | matched to the individual's requirements, but which still |
| the necessary facilities, away from the production | | | | appeal to the company as a whole.You will find that |
| area, for any operative training or re-training that might | | | | with a little extra thought, allied to a willingness to be |
| be required?23. Have you agreed the principle of using | | | | creative, can make a quantum difference to the |
| work measurement with the trade unions and | | | | effectiveness of an incentive programme. |