Why reward schemes for warehouse workers work!

Bonus schemes for hourly paid workers aren’t a new concept, yet surprisingly, despite labour and skills shortages being a longstanding headache for the sector, employee reward schemes have previously not seemed popular across the industry.

In the first of a two-part blog, Dave Morris, Operations Director at Vitesse® explains the importance of introducing incentives and rewards for staff as a way of boosting overall efficiency and morale in your warehouse.

Recognising and rewarding hard-working and well performing staff is surely something of a no-brainer when faced with today’s major challenges in attracting, motivating and retaining good workers.

The rise of online shopping and order fulfilment, together with the rapid growth of warehousing, have led to a perfect storm of staffing issues with vacancy rates high across the industry.

With warehouse talent becoming a scarce resource for businesses, a scramble has ensured to become the employer of choice as companies bid to attract and retain the very best people.

But becoming the employer of choice is only half the battle. Keeping employees happy, well-motivated and engaged is an ongoing requirement for a successful operation.

Accordingly, in recent years warehouse workers have seen many improvements to their working environment. From canteen facility upgrades, training room refurbishments, staff surveys, better quality uniforms, flexible working arrangements, enhanced communication and improved pay rates.

Yet research from Talent in Logistics tells us that above all, employees want to feel recognised and appreciated for their efforts.

Employees in a warehouse are the largest cost item in most logistics budgets – so getting the most from this precious resource is imperative and understanding the need to reward effort is key.

So how can Vitesse help?

Vitesse software measures the efficiency and utilisation of employees in your warehouse on a granular basis, creating a much fairer target for each individual employee.

Warehouse operators and managers can access real time data to understand an individual’s efficiency rather than simply an individual’s Units Per Hour.

Using this data, you can identify those performing above standard and use pre-defined targets to improve productivity. Plus with the bonus scheme in place, there is a compelling incentive for the worker to rise to the challenge.

Vitesse has supported a number of bonus schemes in warehouses. Contact us to find out more.

Louis Hill

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