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