Incentive award programs can help improve warehouse productivity by as much as 15-30 percent, even after the implementation of engineered labor standards. Other incentive program benefits include increased job satisfaction and improved employee morale, which in turn lead to reduced employee turnover, a key metric that is often overlooked in the distribution industry.
Human resource departments estimate the on boarding and hiring cost of a new employee to be in the range of $2,500-$5,000 or more, depending upon factors such as required background checks, medical screening, internal reviews and indoctrination training. Companies experiencing high turnover rates of 50 percent or more may want to consider implementing an incentive program to help retain employees.
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