[screentech]

I would like to change my payroll over from hourly to piece pricing, I feel like my employees just milk the clock and I am frustrated. Does anyone have a formula for that? I am getting sooooo frustrated but it is really difficult to find great help out here. HELP!

 

[wormil]

First, study the laws governing piece rate very carefully.

To establish the rate you need to conduct time trials - basically you count how many pieces you complete over a period of time. How many shirts can you load in fifteen minutes, then how many shirts can someone else load in fifteen minutes; then you average the count and establish your piece rate. I used to do this fifteen years ago but I'm a little rusty so check the laws carefully.

Interesting article
Piece Rate Pay Design

Let me say that I believe there are better alternatives to paying piece rate in a screenprinting business (e.g. profit sharing programs); but I also think that most of the problems can be turned around with good management practices. Look up a recent thread posted by Out Da Box for some recommendations I made later in that thread.

 

[adrenochrome]

Why not just do some time studies and set some KPI's and Quotas? Make them realistic but stick to the program.