Benefits of Activity Based Compensation

Distribution center executives continue to be pressured for improved results. Management has discovered - rightfully so - that those that are going to excel in the logistics arena need additional tools to achieve greater profitability. There are many options for process improvement and technology investment, and those that make sense for one particular company or facility might not be the correct option for the next. However, there is one category that each one of us constantly face - Labor Costs.

  •  Employees become self-managing

  •  Reduces employee turnover

  •  Provides incentive for the average employee to produce more

  •  Rewards superior employees with larger take-home pay

  •  Compensates the poor performer for what they actually produce

  •  The desire to improve productivity becomes the employee’s

  •  Prompts the employee to use all available technology and good methods to improve their performance with positive work habits.

  •  Improved Safety

  •  Reduced Worker’s Compensation claims

  •  Improved equipment utilization

  •  Reduced equipment requirements

  •  Reduced warehouse product damage

 

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