Measure and Pay for Performance

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Issue #10217 - August 2017 | Page #6
By Joe Kannapell

A funny thing happened after Toll Brothers erected this “Board Foot Display” in their wall panel plant. Toll workers didn’t complain. In fact, they actually asked for digital readouts at their individual work stations. Hats off to Keith Fell, Toll’s Director of Manufacturing, for developing this fine workforce; people who recognize their purpose, and who willingly embrace it.

Mike Ruede, Executive VP at A-1 Roof Trusses, discovered a similar thing. When he incentivized each build team, crew leaders no longer tolerated a poor performer, because it affected their pay.

Joe Hikel, CEO of Shelter Systems, greatly boosted performance when he introduced live streaming hourly bonuses in the lunch room of his new plant. Not coincidentally, 20% of his plant workforce received additional cash rewards for perfect attendance for the second quarter of 2017.

Whether in the challenging Philadelphia environs, or booming South Florida, or in between, it pays to accurately measure results, and to reward workers for their achievements. That’s why hundreds of CM’s now use real time shop software like ShopNet or MVP to track labor, and digital displays to inform workers (see Blade Saw’s metrics above). Keith Fell calls this “gain sharing”, but emphasizes the equal importance of team building exercises, like having regular lunches with small groups of workers. Joe Hikel recognizes outstanding performance quarterly, during a shared meal with his entire workforce (see photo).

You're reading an article from the August 2017 issue.

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