Possible Solutions for High Non-Employee Performance Costs

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Exploring Motivation as a Possible Solution for High Non-Employee Performance Costs

To be an effective manager, you must understand both the value and price of your employees. In the manufacturing industry, employee performance can be a huge source of financial losses or gains – making it critical to ensure that team members give their all every time they are on a production line. But what monetary value does an employee need to contribute to ensure that an organization is not losing money because of their non-performance? The most apparent answer is that they need to be producing as much as their benefits and income cost.

Unfortunately, pay is only a tiny piece of the puzzle, and several other non-employee performance costs can quickly rack up to make matters even worse. Some of these costs that may not be factored into the equation in many manufacturing facilities include utilities, transportation, equipment, telecommunications, real estate, and much more. From this perspective, no business that has employees that are only performing to meet their gross salary would be able to survive long-term because all profit margins would be lost.

How Can Motivation Reduce High Non-Employee Performance Costs?

It can be challenging for a business to identify high non-employee performance costs and understand how they are impacting their business’s finances. Since these things can take time to pinpoint and remedy, it is crucial to be vigilant in your motivational strategies company-wide until more financially sound systems are found to offset high non-employee performance costs. This will be an ongoing process for many businesses as technology and project requirements continue to change.

While motivation will not work directly on non-employee performance costs, they can be mitigated by motivating employees to work efficiently. For example, if the employees responsible for the transportation of parts are happy and performing well, they can often overcome the minor limitations with the equipment they are using, leading to higher costs. Likewise, a motivated employee will also be less likely to have errors in their work or a loss of productivity simply because they are so engaged in the process.

Forklift is putting cargo from warehouse to truck outdoors

Once employees become motivated, they will be able to work towards the same common goal to ensure high non-employee performance costs are dealt with as quickly as possible. For some managers, it can be challenging to have a difficult conversation with employees about their performance and how it affects the business; however, this is a critical step in reducing high non-employee performance costs and any direct employee expenses that may be accrued.

Any manufacturer that is struggling to reign in high non-employee performance costs will benefit from the performance-based staffing services provided by Certified Source. We work together with employers to ensure their staff remains motivated and engaged through a unique job advancement and variety approach that limits burnout. With the right people in place, any business can take the time to determine what high non-employee performance costs are affecting their business and address them quickly.