At Staff Management | SMX, we provide our industrial staffing clients with a range of creative outcome-based pricing and compensation models that align with their operational requirements.
Our consultative approach allows us to understand a client’s needs and recommend a model to meet their operational objectives. Our deep domain expertise in light industrial staffing and lean principles allow us to create win-win models that drive results.
Pay for the Result, Not the Labor Hours with Outcome-Based Pricing
Outcome-based pricing, also known as price per piece (PPP), offers our clients a significant opportunity to realize efficiency gains and cost savings. Rather than billing our client for labor hours worked by our associates, we bill the client for our output, regardless of labor usage.
Whether we are billing based on production rates, pallets processed, routes completed, calls answered or another performance metric, outcome-based pricing is an effective way for our clients to migrate to a more fixed-cost environment. This model creates a win-win for our clients and Staff Management | SMX with both parties working towards the same goal—a highly efficient operation.
Pay for Performance (PFP) Drives Productivity & Quality
Pay for performance (PFP) or gainsharing pricing models can be effective strategies to improve productivity and quality and ultimately to cut costs. Developing and delivering solutions that align pay with performance is a strategy to that helps our clients remain competitive and drives program value.
PFP programs are based on the premise that pay is one of the greatest motivators. The idea is to pay the associates for their work while allowing high performers to earn significantly more than lower performers. This provides associates with a financial incentive to perform better than before and directs outcomes that are important to the company such as improved productivity and reduced rework. Effectively administered PFP plans can increase individual productivity significantly and lower variable labor cost per unit produced.
Learn more about how we drive productivity for our clients >