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b"Hey Hey, and welcome to week 5 of 2020! I\\u2019m Marty and you\\u2019re here with Warehouse and Operations as a career! How\\u2019s everyone coming along with their 2020 plans & goals? I\\u2019m off to a pretty good start, I think. Everything's written down and I\\u2019ve put dates alongside what I consider my stepping stones or those little objectives I\\u2019ll need to get to the bigger goals. I\\u2019ve already had to kick one of those dates on down the road a little, no real fault of my own but I\\u2019m waiting on some information I\\u2019ll need from another person so\\u2026.And that\\u2019s ok, as we\\u2019ve learned adjustments are going to be needed occasionally. The important thing is that I stay on top of it. And you can bet I\\u2019ll keep hounding them until I have the requested information in hand! Anyway, onward through the fog. I\\u2019ve been asked about Activity Based Pay a couple of times and last week I had a conversation with an applicant, who by the way wanted nothing to do with it, so I wanted to talk about it today.
\\nABC pay or Activity Based Compensation plans are nothing new in the distribution and production markets but I\\u2019m seeing more and more and simpler programs being put together today. I\\u2019ve seen programs that uses the program to incentives employees to do even the smallest of tasks. One place pays you x amount to punch in and out every day correctly with no edits needed. If you have no tardies your paid x amount as well. You can make x amount for plugging in your equipment and completing a post shift report too. Then as an order selector your paid x amount for every case you select that shift. Wrapping your pallets as you\\u2019re suppose too earns you x amount. Adding all that together at the end of the week, especially if you\\u2019re a hustler and can select the cases, will add up to a nice weekly wage. The same program can be applied to forklift operators, pallet runners and even delivery and route drivers. Drivers would just have a mileage and maybe a by stop component added to the case formulas figured in for those positions. These programs work very well, we\\u2019re actually being paid for what we do. If I pull 300 more cases than my friend, I earn for pay for it. So, the more proficient selectors, fork drivers, runners and drivers are earning more than the employee still learning or maybe even just not hustling like they could. It's great for us as employees and of course works for our company too. They may be able to accomplish the task with less headcount, paying out fewer benefits because of fewer associates. I mean, if they have 3 of us doing a third more than what the average is, then they don\\u2019t necessarily have to add another employee, right?
\\nNow it seems some people want that hourly wage though. And there's nothing wrong with that, but I do feel we\\u2019re holding ourselves back a bit. From my experiences, ABC pay is always over what a base wage will be figured too. And it only makes sense. I\\u2019ve rolled out activity programs several times. Those first few weeks payroll does go up because everyone is trying to be top earners. Oh, and we should probably mention that along with all the pros to these programs there can be some con\\u2019s. I know several places that have error kickers built into them. If we have say maybe 3 errors that\\u2019ll cost us like $30 as an example. Anyway, I strayed again, so everyone's gonna try and be a top earner that first week but by Friday we\\u2019re going to settle into what we can physically do and do correctly! With a base wage, you may be working harder than me, pulling many more cases than I am but I\\u2019m making the same as you and the company is getting less productivity out of us. Their spending the same amount of money on us. But with ABC, there more than happy to pay for that additional productivity.
\\nAnother type of productivity compensation is the tiered hourly rates. Other words say we select 150 cases an hour or move 30 number of pallets an hour as a lift driver our hourly pay rate may be XX an hour."