Millions of dollars in manufacturing process improvements had fallen short of expectations in improving the performance of a consumer goods company’s primary manufacturing facility. Higher employee performance was the missing ingredient but how could the company get manufacturing employees to up their game?
After developing a clear understanding of manufacturing processes and key performance metrics we identified specific ways employees could improve their performance. We also saw that a two-tiered group incentive plan, which measured and rewarded performance at both the facility and departmental level, could get employees on board with the needed changes.
Using financial and operational performance data to develop a detailed incentive plan kept compensation aligned with corporate strategy. Enlisting employees' feedback in designing the new incentive plan garnered widespread acceptance of the plan among the rank and file.
The successful new incentive plan quickly and cost-effectively delivered the performance improvements management were after:
- Improving employee performance at the facility delivered $1.8 million to the bottom line in nine months.
- The group incentive initiative is expected to deliver an annual ROI of more than 850%.
- Facility performance increased significantly across all key metrics.