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Chapter 17. Show Me the Money! > Incentive Pay Plans - Pg. 212

Show Me the Money! 212 It doesn't always work. One of my clients, the Sweet Sixteen Cosmetics Company, used this com- bined incentive system for its packers. Some sharp operators figured out that their personal pro- duction bonus would be higher if, instead of helping the slower members improve, they concentrated their efforts on personal productivity. The team bonus would be less or even nonexistent, but they would earn incentives. FYI The straight piecework system lives on. In the late 1990s, government agents raided illegal garment factories in which undocumented workers worked in sweatshops for 12 or more hours a day at piece rates that netted them earnings well below minimum wage. It also continues to be used by global companies that have opened plants or subcontracted production in developing countries. To correct this, I redesigned the program so that time spent in helping other team members was factored into the incentive plan. The result was a significant increase in total team productivity and even higher bonuses for the better workers. Profit Sharing