How to bring fairness to warehouse pay

It goes without saying that employers want a positive working environment and one built on trust between a business and its employees.

Crucially, it’s the way in which employers manage people that can often determine the nature of the working environment and the level of satisfaction felt by employees.

When it comes to managing warehouse staff, one of the key tools to get the best out of your employees is to measure performance fairly. Doing so in a fair way isn’t an impossible task and thankfully Vitesse software can help you to make this a wonderfully straightforward process.

In this blog, we’ll explore why fairness in the workplace is so important to business success and how it can be achieved with the help of Vitesse’s labour management software.


Why fairness matters to your business

Research shows that employees who feel that they are treated fairly will trust their employer more and feel more dedicated to their role. It’s something that cannot be underestimated, particularly in a warehouse setting.

Employee satisfaction is a by-product of having an equitable workplace and it can have a huge impact on the success of that warehouse.

A Cardiff University study found that procedural fairness was an important aspect in any workplace, as it affected how secure employees feel in their role and therefore their satisfaction, which is why having a fair measure of productivity is crucial.

Research has also shown it is vital from a welfare perspective, as a University of Stockholm and East Anglia University study even found that workers who were unfairly treated were more likely to develop health problems. This could lead to employees having to take days off which subsequently will cost a business time and money.

A fair and equitable measure of employee performance in your warehouse is something that shouldn’t be underestimated as it can bring huge benefits for your business.


Why old performance measures could be holding your business back

Units per hour has been the standard form of productivity measurement since the early days of the Industrial Revolution, but at Vitesse we think it’s time that warehouses sought a more 21st century approach to measuring their employees’ performances.

Let’s use an example to illustrate the shortcomings of units per hour:

It’s Christmas time – a busy sales period, so it’s even more important that warehouse managers can understand the productivity levels of their staff.

In the warehouse there are 20 aisles for picking and worker A has been assigned to aisles 2 and 18, while worker B is on aisles 9 and 10 but both have the same picking targets.

Worker B completes more units per hour than worker A, which shows the warehouse manager that the former has been more productive as he or she hit the target set.

However, what this measurement doesn’t take into account is that worker A had a bigger distance to travel and could’ve actually completed the task more efficiently than B.

Yet, because this warehouse has an imprecise way of measuring performance, B is shown to be performing better and may be rewarded over A.

This, of course, is unfair if worker A had more distance to cover than B and may well have overall been more productive.


How to bring fairness to warehouse pay

Put simply, Vitesse helps to create a fairer workplace.

Vitesse, a labour management software, makes use of information each warehouse has such as product dimensions, weight, numbers of pallets or cages being used and stretching to reach higher locations, to create fair task times.

This way, warehouse managers can get a precise measurement of employees’ productivity levels and understand who the highest performers are.

Employees who perform well can then be rewarded and this will ultimately lead them to feel more valued as well as more dedicated to their role.

To find out more on how Vitesse can help you to manage your warehouses in a fairer way and boost performances visit our website to find out more.

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Louis Hill

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