My company works on a "pay-for-production" basis. For example, we base a 100% bonus on your crew producing 1900 tons of prime, to-order steel during a 12-hour shift. So if your base rate is $15.00/hour, and your crews (day shift and night shift production is averaged, to keep one crew from screwing the other one) runs 7600 tons in a 24-hour shift, your hourly rate is $15.00 + 200% bonus = $45.00/hour. Our six-month average is 187%.BDK wrote:I like that policy. I know I want to structure a profitability incentive somehow - production bonuses drove productivity through the roof.
I'm not sure how well it could apply outside of engineering, but I like it...
Not sure how that would work in an engineering environment, but it seems to work well for us.