New Labor Management Software Reveals Why Most Incentive Pay Programs Don't Work

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nGROUP performance partners has announced they will release a new Labor Management Software solution in Q1 2013 that will revolutionize the employee and employer relationship within the manufacturing and distribution industry.

“Respecting how we as human beings work is the key to increasing productivity,” says Zimmerman. “Now we finally have a sophisticated labor management software that understands the power of the individual.”

nGROUP performance partners has announced they will release a new Labor Management Software solution in Q1 2013 that will revolutionize the employee and employer relationship within the manufacturing and distribution industry.

Jim Zimmerman, nGROUP COO, says nGROUP created the new software because traditional Workforce Optimization and Labor Management systems did not provide the information needed to take workers and their companies to higher levels of performance. Structuring incentive pay programs is part “art” and part “science, he says. “By working on the production floor with workers for decades we have come to better understand what motivates.”

“Most workers are motivated by the opportunity to make more money and we all believe that incentive programs should work,” Zimmerman says. “Yet most are actually demotivating– and CFOs and Productions Managers often ask us, ‘why don’t they work’?”

Leaders and managers assume that workers will be more motivated if a financial carrot is dangled, according to Zimmerman. He says they’ve been taught that the increase in productivity will fund the incentives and boost morale. Most often they don’t, in fact it is rare if they do, because often the individual and corporate goals do not align, and companies cannot measure true individual performance.

Consider these facts from a decade of study by nGROUP performance partners. Workers increase their productivity when they:

  •     Receive specific training on how to do a task in the most effective manner possible
  •     Know what is expected of them
  •     Receive immediate recognition for meeting or exceeding standards
  •     Have the opportunity to earn more based on their performance
  •     Believe the performance tracking methods are objective and fair

According to Zimmerman, traditional labor management systems are built around the units of measure common to executive reports. This is a disconnect for the workers on the job. nGROUP found that using units of measure that workers relate to, such as their individual production data, improves their trust in the numbers and motivates them to achieve more, which is the goal of incentive pay programs.

Zimmerman adds that customizing the software to capture individual productivity is crucial in understanding if quality and production standards are being met or improved. It also must identify the precise point in the production process where opportunity exists. “Our business is to create the highest possible performance within an operation, and that means we most know what each individual is doing,” Zimmerman says.

Unlike other systems, the new nGROUP software is built around the employee and measures efficiency by employee, by date range. All paid time is accounted to a task. When individual performance is tracked accurately the reports have meaning to the individual, the manager, and the executives, says Zimmerman. “It’s accurate information that everyone can trust.”

When nGROUP performance coaches give employees their results in the form of data reports, employees are motivated to improve and become open to coaching on technique and process. With this data structure in place, incentive pay programs are highly effective, says Zimmerman, and can quickly increase employee morale. When people are succeeding and getting paid for their personal achievement, the work floor becomes a positive, high-energy environment, according to Zimmerman.

The results are hard to argue. nGROUP consistently achieves 20 – 100% increases in productivity. With their new web-based software, nGROUP is now able to seamlessly capture and report not only the big “P&L Picture” but also gain snapshots along the way of the individual efforts and procedures that make or break a company’s bottom line.

“Respecting how we as human beings work is the key to increasing productivity,” says Zimmerman. “Now we finally have a sophisticated labor management software that understands the power of the individual.”

nGROUP performance partners is the leading onsite-outsourcing provider for manufacturing and distribution companies that require cost improvement and risk protection in their labor intensive operations. To learn more visit http://www.ngroup.biz or watch nGROUP.biz/movie, or call 877-202-9677.

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Jim Zimmerman
nGROUP
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