Performance appraisal and bonus calculation for warehouse employees

Abstract

The development of global supply chains, market liberalization, and new business trends have contributed to creating more competition in the market and increasing demand. Logistics companies strive to generate revenue by providing services of a higher scope and level of quality, while cost minimization is often associated with a system of calculating salaries and employee benefits. The fluctuation of workers is one of the current problems faced by a large number of companies, so the development of a system that will improve conditions and motivate workers is very important. The paper proposes a model for evaluating work performance and calculating bonuses for employees in the warehouse. The model considers the main performance indicators that refer to work engagement in terms of the number of picked items and presence at the workplace. The sensitivity analysis of the model established the convenience and universality of the application.

Keywords

• work performance
• variable payments
• bonus
• incentive system
• working conditions