Performance-Based Motivation System for Warehouse Pickers
Project Info:
Designed and implemented a performance-based motivation system for warehouse
pickers in the largest retail company, directly linking their income to productivity, resulting
in improved efficiency and cost optimization.
Challenge:
The company faced low productivity, high labor costs, and uneven workload
distribution. Without a structured performance-based incentive, pickers had no
motivation to increase efficiency, leading to excess staffing and operational inefficiencies.
Solution:
Developed a KPI-based incentive system, directly linking picker salaries to
performance.
Set tiered bonus structures to encourage higher efficiency and accuracy.
Introduced real-time tracking to measure individual picker performance
transparently.
Conducted training sessions to help pickers adapt and improve their speed and
accuracy.
Result:
- Picker headcount reduced by 35%
- Productivity (picked lines/hour per picker) increased by 42%
- Labor costs decreased by 28%, driven by performance-linked pay
- Employee motivation improved, with top performers earning up to 20% more in monthly wages, resulting in higher retention and engagement