How To Implement a Productivity Pay Model For Greater Returns

  • May 1 2024
  • Eclipse IA

The light industrial industry is facing many challenges. Some of these were escalated by the recent disruptions to the supply chain and others are a result of the continual staffing and productivity pressures that distribution centers and manufacturing facilities face. While many companies turn to temporary staffing to address these problems, the traditional hourly pay model they operate on doesn’t incentivize the higher production companies need to remain competitive. This is where a productivity pay model can be especially helpful.

Also known as team-based pay or pool pay, a productivity pay system rewards the output of the team as a whole and divides rewards equally among members. Research has shown that the benefits of this model include:

  • Increased productivity and work quality
  • Higher wages for employees without higher costs to your business
  • Improved employee retention
  • Stronger leadership

Want to learn more about the benefits of productivity pay? Download your (free) guide now!

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