I'm sure this is an age old problem. We have initiated a effort to improve the efficiencies in our manufacturing facility. It is beginning to be effective, however, the result is becoming a decrease in the necessity for overtime and a reduction in the required labor. Consequently, many of the associates who are contributing to these cost savings are beginning to see a reduction in their take-home pay (albeit they are having more free time).

How have others overcome this issue, because the reality is hitting that if I become more productive, I will make less money.

We have instituted a gain-sharing program, that pays a % of the savings back to the associates, but that is not nearly the $$$ they get paid with the OT. Any other solutions?

-- Ken Pachla (kpachla@nobleintl.com), October 25, 2000

Answers

Short of participating in a profit-sharing scheme the only other possibility that crosses my mind is using the free time to find money making opportunties outside the employ of your organization. I am not talking about getting a second job, use the time to establish a part time business. Of course that doesn't cater for everyone but then you really need to find out first who exactly is being hit by this issue.

If you survey your organization at least you can determine the extent of the need and if there is a great need, you have data to show your company and push to find ways of sharing in the fruits of the productivity. (As long as increase in productivity is translating into additional sales revenue and profit).

That may not be much an answer Ken, but I hope you found it helpful to you in terms of coming up with ideas of your own.

(Mark Zorro is a pseudonym I use on-line to protect my career and personal interests)

-- Mark Zorro (zorromark@consultant.com), October 25, 2000.