Incentive Bonuses Save 113,000
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INURING the past two years, the LI metals division of I.C.I., Ltd., has saved £13,000 because of the operation of employees' incentive-bonus schemes. That for millwrights and vehicle maintenance men is on an individual basis, but the scheme for drivers is according to groups of operatives.
At first, the 16 drivers were included in one group, but after a time three categories were formed and graded according to the men's efficiency. These are revised every six months. Units are awarded according to daily mileage, varying from 9-11 units per mile for 15 miles a day to 4.5-4.8 units for 110 miles a day, and for loading and unloading and ancillary duties. Units for every collection and delivery
vary from 15-50 for loads ranging from 10 cwt. to 10 tons.
At the end of each week, total units for each group are divided by hours worked and it is upon the figure so obtained that bonus payments are made. Operatives on day rates are expected to average 60 units an hour: if they gain 80, they receive a 331 per cent. bonus.
During the first three months of the scheme, drivers averaged 67-70 units an hour. After a year they were regularly achieving 75 units. In the second year, the top group attained 8084 units, the second 77-81 and the third 73-77. To avoid speeding, the amount of pay which is awarded is scaled down after the 80 unit-hour figure. For a 100-unit hour, the driver would he paid for 92.
Because fewer vehicles have had to be hired, the division saves £2,500 a year, Millwrights and maintenance men have different jobs timed by an estimator and the stipulated time is divided by the time they actually take; the result is multiplied by 60 to give a unit-hour figure. Any performance in excess of 45 units-hour is subject to bonus, which is decreased after 80 units-hour to obviate rushed workmanship.
Before the introduction of the scheme, the average time per job was 41 hours; it is now a little over two hours. Whereas 50 men were formerly employed in the maintenance section, there are now 34 and the wages bill has dropped by 20 per cent., saving £4,000 a ear.