Executives have it and so do Sales people. Most Managers and Supervisors have it too: Pay for performance. Incentives. Performance bonuses. All of these compensation elements are essentially the same thing and are designed to help motivate people to drive results for their respective businesses.
But when it comes to hourly workers, well, that is a different story, especially for temp workers. Temps are motivated by hours on a clock, period. That’s how they get paid – by the hour. And generally, their pay isn’t high enough to be highly motivating and so working slowly and for a lot of overtime is a good thing. (And, not good for you!)
The staffing agencies that send those temps are motivated by the hour as well along with the bill rate or markup they receive for the bodies they send you – not by how good a job those bodies do for you. In reality, the more hours worked and the more overtime all drives their P&L in a positive manner while costing you more and more.
If that’s not bad enough, the impact can be even worse. Put your best hourly employee in the same work cell or on the same production line as the temp worker. Your employee may have an incentive to do better, but the temp sure doesn’t. So what’s most likely to happen? Is the temp going to get motivated to do a better job so your employee hits their goal, or is your employee going to get de-motivated by having to work with someone who just doesn’t care how long the job takes?
And attendance – just showing up – doesn’t get the job done effectively. Often times the worker who just shows up for the hours impedes getting the job finished.
With the current challenges in the labor market, let Insource show you a different and better way to handle flexible staffing AND performance pay to make a difference in your operation.
Reach out to us today for a Free Labor Assessment!