Integrity defines the way we interact with our customers, employees and suppliers
Electronic Source Company has developed an innovative employee incentive plan based on research data. This has resulted in a win-win-win, for the employees, the company, and company’s customers. How does this benefit customers? By aligning the interests of the customer with the interests of the employees. All employees receive monthly bonuses based on stick rate and on-time delivery. Individual departments are bonused on their DPMO and driving world class results.
With the tightest process controls and repeatability, ESC reduces the chance of field failure that is caused when reworking the product. Let’s face it, introducing the variability of rework raises the likelihood of thermal shock and therefore field failure.
Although the incentive program costs money, ultimately it reduces labor expenditures and therefore, pricing to customers. With higher compensated employees who are motivated by our pay for performance bonuses, there are fewer employees needed for rework, and the overhead associated with more employees.
Below is a snapshot of ESC’s employee engagement tracking metric survey.
ESC’s employee engagement plan is primarily based on the research of Edward Lawler and his book, Performance Pay. It’s description and key principles are described below.
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:
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