How Seta Corp. reduced its labor fulfillment costs by 45 percent.

By Reported Donna Loyle

As a result of this incentive program, Seta’s DC employees increased their average production from 250 units per hour to more than 500, all in a manual batch-processing environment. And they increased their wages by $2.50 to $3 per hour over their average base pay of $10.

Takeaway Tips: Holody, who calls himself an “incentive advocate,” says staff motivation programs in general should be reserved only for jobs in which individual performance (e.g., productivity, accuracy) can be measured objectively. “Picking and packing operations are good examples,” he offers. And special projects, such as cleaning the warehouse or the parking lot, shouldn’t count toward incentives. “Such duties comprise non-productive time,” says Holody, “and as such, they’re beyond the employees’ control.”