Electronic Manufacturing Services

Workforce Engagement

Integrity defines the way we interact with our customers, employees and suppliers

Manufacturing Excellence Every Day

Workforce Engagement Program Detail

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.

  • Improved Quality

    By having every employee partake in an incentive program, there is less turn-over and employees who have higher levels of care in what they do produce fewer errors. Additionally, because ESC is more competitive in its total compensation package, higher level individuals are attracted to ESC, and retention rates are higher which yield higher quality to our customers. Quality data prove this.

  • Improved On-Time Delivery

    By having highly motivated and caring employees, employees work more diligently and are more committed to making on-time deliveries to customers. During surge events, employees are more willing to put in necessary overtime to meet the needs of ESC and its customers.

Lowest Overall Cost of Ownership

The most costly defect is field failure.

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.

ESC Workforce Engagement

Workforce Engagement Tracking

Below is a snapshot of ESC’s employee engagement tracking metric survey.

Plan Description and Background

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.  

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.

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