Who We Are
Our Core Value:
"To provide opportunity and growth for our employees and reward all involved when realizing exceptional results."
This is reflected in our Workforce Engagement Surveys
Gain Sharing Pay:
We derived our bonus system from the book by Edward Lawler, "Performance Pay."
According to Lawler, the four principals that make performance pay effective are:
- Objectivity – no preferences for personalities or friendships.
- Timely payout for the result – ESC pays bonuses monthly for the previous month’s performance.
- Belief in the ability to impact performance – our people impact revenue per labor hour and we constantly reinforce this.
- 4% of gross pay – this is the threshold that begins to effect behavior – below four percent, people don’t care.
ESC bases bonuses on two factors: Customer Satisfaction and Revenue per Labor Hour (RLH).
Customer satisfaction: Each month ESC surveys all customers invoiced and asks them to rate us on a scale of 1 to 5 (five being best) on quality, delivery, communication and responsiveness. When the customer satisfaction’s cumulative average is 4.3 or better our employees are eligible for bonus.
Revenue per Labor Hour: This determines the bonus pool or the amount to be distributed. We take value-added labor revenue (Revenue, less material) and divide it by the total number of hours of direct labor. That gives us revenue per labor hour (RLH). In relation to the RLH, ESC has a monetary threshold for remaining profitable. 40% of anything above that threshold an hour goes into the bonus pool. The bonus pool then is pro-rated by what the individual made that period. This way people who make more get more; people who worked more overtime when needed, also get bigger bonuses. We review these results monthly at the company meeting.
ESC measures what is important to the company and we pay on it: keeping customers happy and making sure we are shipping profitably.