Money Motivates

Material Handling Management

November 2005
Written by: Clyde E Witt

When it comes to motivating employees, money is far more persuasive than just about anything else. An effective incentive program, however, is about more than money.

Sometimes managing the workforce begins with re-defining the business. Such was the case at Creative Memories (St. Cloud, Minn.). Ole Dam, vice president of operations for the company that virtually created the scrapbooking phenomena, says competition drove it to find a better way.

To meet the demands of its customers and direct-sales consultants, and stave off competition, the company instituted an incentive program to reward its manufacturing and distribution center employees. The program is educational and financial. As skills improve, rewards follow.

“Speed to market is critical for us,” explains Dam. “So rather than have distribution employees standing around waiting to fulfill orders, we train and certify employees in all areas of manufacturing, and how to do the pick, pack and ship part of distribution.”