07. Incentives – Pro Or Con

“Best thing we ever did”. “Never again”. We have heard both. Our experience is that productivity and quality can be significantly improved by using an incentive program, but only if it is properly managed. Approximately 70% of our clients use the PEP pay for performance module. The program is normally a combination of individual and group results depending on each department’s mode of operation. If individual incentives can be used, they provide the greatest benefits. Is your organization pro or con?

Comments

  1. Tony - David's Bridal says

    Taking care of our workers is important to us. In the past, we’ve handled peak volume periods by using a mix of overtime and agency employees. This has been an expensive way to operate and at times asks a lot from our employees in the way of overtime. After having PEP for several years, we decided to try incentives. The resulting productivity improvement, particularly during heavy volume periods, has actually let us significantly reduce overtime and the use of agency employees. Has anyone else used incentives, and if so, what results have you had?

  2. Dom - Checkmark Logistics says

    In most cases, I’ve never been a big supporter of incentives. I’ve seen too many organizations get burned by letting them get out of control. We’ve used Cook & Associates and the PEP program in several of our facilities over the years and fortunately have been able to achieve significant results without incentives. If your managers respond to the PEP information and take the appropriate actions, productivity and processing timeliness will improve. If they don’t, I don’t think incentives would help, but I’m always willing to listen to another viewpoint.