Off the Cuff: Evaluating and Compensating Production Employees, Part V

Because no company is the same, each will set its own priorities and determine what skills count for measuring employee performance.
March 3, 2008

By Mark L. Venit, MBA

In "Evaluating and Compensating Production Employees, Part IV," we discussed the need to establish production output standards, proactively monitor employee performance and production rates, and develop skill-level classifications.

Let’s look at creating those skill-level groupings and tying wages to performance. Every company has its own priorities here as to what skills count at each level. But here are a few examples to help you understand how to get started on your way:

Example A - LEVEL ONE TECHNICIAN (Screen Printing, Embroidery, Engraving, Etc.)
1.    Can demonstrate a working familiarity with policies explained in the company’s employee manual (mainly showing the employee knows how to use the handbook to find policy information).
2.    Can locate fire extinguishers, first aid kit, material safety data sheets, eyewash, equipment emergency shut-off switches and other fundamental safety aids promptly.
3.    Can set up equipment from start to finish.
4.    Knows where all machine on/off switches, plumbing valves and light and fan switches are as well as shutdown procedures for all pertinent equipment.
5.    Can correctly identify different types of orders, materials needed and other basic prerequisites for
6.    Learning the rest of the basic technology
7.    Can set up and register a routine order.
8.    Can properly load/place materials onto/into equipment.
9.    Can accurately count items (sounds simple, but you know it isn’t for a rookie).
10.    Can pack items for pick-up/delivery/shipment according to company requirements.
11.    Meets all quality control standards established for Level I Technicians.

Example B - LEVEL TWO TECHNICIAN
1.    Can accurately read and diagnose a printed work order, can correctly identify items, sizes, colors/fabrications, and demonstrate the ability to stage an order for production.
2.    Knows where all supplies are stored, knows proper procedures for returning supplies and complying with all company recycling requirements.
3.    Can set up and register a (more complex) order on (specify) equipment.
4.    Can execute order and meet quality control standards for design placement, clarity, etc.
5.    Can operate (specify other equipment) in production area.
6.    Can identify basic manufacturing defects in items and fundamental technical errors.
7.    Can accurately complete production quality and administrative reports.
8.    Meets quality control standards established for Level II Technician.

Level III Technicians will have even more skills, many of which require experience with performing lower skill tasks and working for a sufficient period (months or years) in a general production environment to learn how to operate the various equipment at your business, be it for a Level III Screen printing Technician, a Level III Embroidery Technician, etc. Level III personnel also might be required to be able to supervise other employees and provide direct training of new hires in Level I and II skills.

In addition to ever-increasing professional responsibilities in technical areas, the component skills at Level IV also will likely entail a degree of management ability — perhaps to be competent in managing one or more complete functions of the process or managing a second shift.

Where applicable, certain general skills also should be incorporated into your creation of classifications, functions such as:
•    properly answering a customer’s questions or at least being able to pleasantly take a message accurately over the phone,
•    operating your alarm system,
•    communicating via e-mail,
•    diplomatically handling order purchasing/production glitches and surprises directly with vendors and customers,
•    and using the company’s software programs that entail specific skill level-appropriate modules (scheduling, inventory management, etc.).

Establish Eligibility and Qualification Periods
At each level, employees will need to spend a certain amount of time on the job to become proficient within their classification. So, formal eligibility periods must be mandated for advancing up the skill ladder. For instance, a Level I technician may qualify to be tested for Level II classification after 60 to 90 days in a Level I position, while a Level III employee might be required to work within this advanced classification for six months to a year before becoming eligible and qualified to test for becoming a Level IV.

Another incidental and beneficial outcome of the process of creating classifications is that you’ll finally be writing your company’s job descriptions as you go along. The recommended methodology here is to determine your classifications and then hire, train, groom and develop your personnel management system to reflect how things should be made to work, fitting people to jobs, not the other way around — a mistake most small companies make routinely.

In Part VI, the conclusion to this series on "Evaluating and Compensating Production Employees," which will appear in the March 18, 2008, edition of the Impressions newsletter, we’ll discuss the criteria for wage increases and benefits of standardizing your compensation procedures.

Mark L. Venit, MBA, is president of Apparel Graphics Institute Ltd., Ocean Pines, Md., which provides management and marketing consulting and proprietary research to apparel graphics companies throughout the Americas and Europe. He is also the chairman of ShopWorks Software LLC, a provider of industry-specific business software. Venit teaches pricing, strategic marketing, salesmanship and other business management topics at the Imprinted Sportswear Shows. You can reach him at markvenit@cs.com.

Click here to read "Evaluating and Compensating Production Employees, Part I."

Click here to read "Evaluating and Compensating Production Employees, Part II."

Click here to read "Evaluating and Compensating Production Employees, Part III."

Click here to read "Evaluating and Compensating Production Employees, Part IV."

Off the Cuff: Open Houses Prompt Open Wallets
Hosting an open house shows off your shop's capabilities and attracts new customers.
Looking for a way to boost first quarter sales? Consider hosting an open house at your shop.
December 08, 2008

Off the Cuff: Artistic Holiday Gifts
This holiday season, send creative gifts to clients to show off your talents.
Planning on sending holiday gifts to your customers? Thinking now — and fast — about what to send can pay big dividends in impact, recognition and response.
November 21, 2008

Off the Cuff: Credit Cards — Plastic Primes the Pump
Accepting credit cards improves cash flow and reduces headaches, giving you more time to focus on growing your business.
Most apparel graphics companies take credit cards, but it’s clear that very few make it a practice to encourage their customers to use them. Why? Conventional wisdom says that accepting credit cards consumes an unacceptable percentage of your profits. This logic measures costs against benefits — but without really weighing and understanding the benefits. 
November 10, 2008

Off the Cuff: Avoiding Political Pitfalls
Selling promotional apparel and products to political organizations can yield high profits, but make sure you're aware of the possible risks.
The U.S. presidential election is only a week away — along with U.S. Senate campaigns in 33 states and 435 races for seats in the U.S. House of Representatives. The national election brings 1,000 candidates in need of what we sell. Add to these campaigns those of several governorships and contests for office seekers vying for municipal, county and state legislative, executive and judicial positions. For our industry, that means tens of thousands of orders — and reorders — for T-shirts, sweats, caps, bags and promotional products.
October 27, 2008

Off the Cuff: Confidentiality Agreements
Confidentiality agreements protect more than your assets. Just as importantly, they protect your customers.
Some of you might recall a column I published last November that addressed how to keep contract customers out of your production area in order to protect your work. This week's column looks at the other side of the same coin -- employee confidentiality agreements. These are legal agreements that are intended to keep your employees from talking about who's placing orders, for what quantities and dollars, what's being produced and who the end-user might.
September 15, 2008