Benefits of Pay for Performance

Pay for Performance (PFP) is a very powerful way to create a productivity-oriented culture in any organization. To learn about the key requirements of a pay for performance program, please read our previous blog post, “The Building Blocks for Successful Pay for Performance.” In this post we will continue the discussion with a review of […]

The Power of Pay for Performance

At one of my prior companies (Integrated Management Systems), we used Pay for Performance (PFP) extensively to motivate employees and drive productivity substantially higher. We have worked with PFP for over 20 years and have seen both big successes and big failures with it. We like to look at pay for performance as nuclear fuel. […]

Productivity versus Quality and Safety

One of the common concerns we here when discussing pay for performance is that quality and safety can suffer. From our experience, this has not been the case even if quality and safety are not measured.  However we do encourage companies to include quality, safety and other non productive criteria if they can. When you […]

Employees Gaming the System

Pay for Performance (PFP) can be a powerful tool to reduce the unit cost of labor in a Distribution Center while also increasing the take home pay of the workforce. Although the vast majority of employees will focus on doing their job as effectively as possible, it is important to make sure that you are […]

All Stick – No Carrot

Each time I read a “hit piece” in a newspaper describing the working conditions at an Amazon Distribution Center I am reminded of the importance of workplace culture. We are lucky to have so many customers that value their employees and understand that they are a key component in the success of their businesses and […]

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