Following on from our last blog on the importance of introducing incentives and rewards for staff as a way of boosting overall efficiency and morale in your warehouse, Vitesse Operations Director Dave Morris goes on to explain the basics of setting up a rewards scheme.
To have an effective system of performance pay, measures should be transparent and equitable. Often this means industrial engineering standards are required to inform target times. When it comes to implementing a fair scheme, it’s important to factor in elements within the task being measured. This may include distances walked in the warehouse, number of units being picked, weights and dimensions of items being picked and more.
Ultimately, employees must have the confidence to carry out a task, knowing that they are being set reasonable targets that reflect the task in hand.
With this in mind, how do logistics directors and finance directors go about calculating the bonus itself?
The optimal way is by measuring the efficiency of an employee against a target task time along with their utilisation – utilisation being the amount of time spent on (or off) direct tasks. Combining these two outcomes gives the bonus equation and ensures fairness as it demonstrates how effective the employee has been against a target time. Vitesse can help with this.
How Vitesse can help
Vitesse® software measures efficiency and utilisation of employees in your warehouse. Our technology calculates the number of metres an employee travels, amongst other things, to complete each task, creating a fairer target for each employee.
The X, Y, Z map coordinates created by Vitesse® software are key to measuring distances being travelled, providing valuable insights that enable these distances to be reduced or altered where appropriate.
Warehouse operators and managers can access real time data to understand an individual’s efficiency rather than simply an individual’s units per hour.
This is a much fairer way of evaluating performance rather than the imprecise ‘units per hour’ measurement so is unreliable to use as a basis of measure for a bonus scheme.
Vitesse has supported several successful bonus schemes in warehouses. Contact us to find out how we could help you to achieve a fairer workplace with a better motivated and higher performing workforce.