Parador implements premium wages in the warehouse

Parador implements premium wages in the warehouse

The specialist for innovative floor design changes its remuneration system for the warehouse workers.

The result: Cost savings through increase in productivity and an improved quality of work.

The task

Before the start of the project, Parador was using a system of pure time pay with agreed supplements for extra or special work. That is common in this industry sector. A premium wage system that is well adjusted to the specific needs of the company can increase the productivity of the employees considerably. Furthermore, it can provide an incentive in the desired direction by comprising components like quality or presence.

The company

Parador is a renowned producer of products for floor and wall design in Coesfeld and belongs to the Hüls-Group.

Its large assortment comprises 2.500 items from the ranges laminate, parquet, solid wood boards, terrace boards, screens and decorative panels for walls and ceilings.

More than 600 employees made a turnover of 135 millions of euros in 2011.

Parador distincs itself from competition through high quality of products in combination with unique design and wins regularly international design awards.

The solution

The implementation of the premium wage system proceeded in three phases:

Premium wage maturity - processes, potentials and productivity: The data base is created, basic parameters for implementation are checked and the saving potential is calculated.

Premium wage development: Form the variety of systems the optimal one is chosen and adapted to the specifics of the company. In the case of Parador, a combination of productivity premium and quality premium was best in realising the potential determined in phase one.

Premium wage implementation: In the final phase the system is explained to the employees, an adequate software is installed and a timely monitoring of results is implemented.

The result

In implementing a premium wage system with the elements

productivity and

quality

considerably increases in efficiency can be realised. At the same time, the quality element of the premium gives incentives for continuous improvement.