April 14, 2015

Automating Incentive Pay Policy Impacts the Bottom Line

Automating Incentive Pay Policy Impacts the Bottom Line

By Kit Dickinson on April 14, 2015

 

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Duckwall Fruit Company was wasting a lot of time (money) until our payroll partner showed them what great looks like.

Located in Oregon’s Hood River Valley since 1919, Duckwall Fruit Company has grown from a small packing house to an international firm that packs over 1.7 million cartons of premium pears annually. Duckwall has over 300 employees—many of which are responsible for packing produce.

To calculate employees’ piece earnings for payroll, Duckwall needed to accurately capture employee time information and associate it with their piece production data. Their method was painful and onerous. Factoring in union rules and regulations made the incentive pay process even more time consuming for the payroll department.

Manual Payroll Processes Drain Resources and Profit

The company’s internal Graphic Labels system tracked the raw piece production for each employee. Supervisors had to review the data from this system and spend several hours determining production earnings before sending them to the corporate payroll team. The payroll staff would do a final review and attempt to enforce government and union regulations. After the data review was complete, the results had to be manually entered into payroll.

As you may have noticed, the payroll process consumed too many resources, pulled supervisors from more important work, and took much too long to complete. Not to mention the rich opportunity for manual errors and misapplied regulations! Duckwall was losing money to these inefficiencies every pay period, and they didn't know it.

Automated Data Integration Boosts Enormous Savings

Duckwall began talking with one of our payroll partners, who recognized the opportunity to create enormous savings for the company—implementing a fully integrated time-and-labor management and payroll solution. The integrated solution would drastically reduce wasted resources and meet Duckwall’s goals for automating piece rate and maintaining government and union compliance.

Our partner introduced IDI to the project and we implemented our Time Bank™ integration solution to automate many of their manual procedures. Our partner’s systems were configured to reliably track employee time and enforce Duckwall and government-required pay policies. Time Bank was customized for Duckwall to provide reliable data transfer between their systems with the following capabilities:

  • Automate the transfer of employee piece productions from the Graphics Labels system into time-and-attendance.
  • Calculate employee union dues based on when an employee is eligible to pay union dues each month. Deduct the amounts from payroll.
  • Calculate employee piece earnings for each job performed and piece type worked on during the pay period. Time Bank ensures employees receive the higher of minimum wage vs. their piece earnings, and includes a user-maintainable table for Duckwall administrators to update as piece rates change.
  • Export union and piece production information to payroll to complete the process and generate labor reports.

After installing Time Bank, Duckwall Fruit Company could run their payroll processes in a fraction of the time. Not only did they save money every pay period, they freed up valuable time for their managers and dramatically reduced their risks for human errors. Their payroll operations are like a well-oiled machine.

Next Steps

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