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Variable Pay

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Variable pay is compensation linked to individual, group/team and/or organizational performance. Variable pay programs are very poplular, with more than 80% of organizations using them according to a Worldat work annual survey. Variable pay plans attempt to provide tangible rewards, traditionally known as incentives, to employees for performance beyond normal expectations By using variable pay is a better way to attract, retain and motivate employees, said Ken Abosch, business leader at Hewitt Associates during
Worldat work’s Total Rewards conference and exhibition in Anaheim, California. The key to motivating the machine operators is to understand what motivates them. Different things motivate each individual. The first thing Plastec can do is to find out what it is that really motivates each of them, by doing this they can asking them, listening to them and observe them. Plastec can designed a variable pay plan for their machine operators around net operating margin. Each machine operator should have a separate target value. As part of the plan, machine operators can be treated to several days of award (rewards), spa treatments, golf outings, paid time off, gifts, monetary, and meals. Machine Operator managers can be recognized for attainment of their specific goals. Also with financial and non-financial rewards this is a win-win for all. In addition financial reward are provided to the machine operators in recognition of their contributions. To increase their productivity supervisor/managers need to provide direction and give assistance when needed. Supervisor/Managers needed to be trusted, given freedom to the machine operators in their style and adopt measures which they think are the best to deliver results with this a little freedom helps to keep them encouraged, motivated and happy in the belief that they are trusted. Employees want to

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