In managing production worker compensation and expenditures for best practice training, the overriding objective of company managers should be to achieve the highest possible worker productivity (pairs produced per worker per year). make sure its annual base wage for production workers is always above the average base wage paid by all companies in those regions where it has production facilities. achieve labor costs per pair produced that are at worst below the industry average and at best are very close to (or even equal to) the industry-low in each region where the company has production facilities. establish an incentive pay per non-defective pair that results in the lowest feasible reject rate for branded pairs produced. establish total compensation packages for production workers that are close to the highest in the industry in each geographic region where its production facilities are located--this is because companies with the highest total annual compensation packages attract highly-motivated workers with the skills needed to achieve the highest levels of labor productivity.
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