Performance management and incentive design for Paper Bag Makers: pay for passed bags, not counts
In a paper bag unit, output is easy to count and quality is easy to miss. Incentives decide whether handle fixers rush, whether setters guard paper, and whether a crew stays for a small rise elsewhere.

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Share your requirementsWhy performance management and incentive design matters in paper bag makers
Where handle fixing is paid by count alone, workers race. Handles are glued unevenly, bags tear at the shop, and the retailer or caterer sends the lot back. The fixer who was fastest earned the most, so the habit spreads. Setters are rarely measured on paper waste at a size change, so a careless changeover costs reels and nobody can see it.
Good looks plain. A pull test by the checker on a few bags from each fixer, paid only on bags that pass. A setter's size-change time and waste noted for every change, shared with the crew. A small step in daily pay for regular attendance. Each scheme fits on one page and is explained to the crew in their own language before it starts.
How to set it up
1. Pull-test a sample from each handle fixer
Ask the checker to pull-test a few bags from each fixer's bundle at fixed times in the shift. Write down passes and fails by name for a week before changing any pay.
2. Write the handle rate on one page
Set a rate per passed bundle, say what counts as a fail and show one sample of each. Read it aloud to the fixers and answer questions before it is used for pay.
3. Track waste at every size change
Note the setter, the old and new size, the time taken and the paper wasted. After two weeks show the crew the best routine and ask that setter to teach it. See HR reporting and analytics.
4. Add a small attendance step for regulars
Agree a clear step in daily pay after a set run of present days, paid with the same day's wages. Keep it simple enough that a helper can work it out alone.
5. Review the scheme after one festival peak
Sit with setters, fixers and the checker after the rush. Ask what was unfair, what was gamed and what to change, then update the one-page note.
Check these first
Before changing anything, find out what is true today. These take an afternoon and use your own records.
- Pull a week of handle-fixing fail counts and see whether the same two or three people account for most fails.
- Compare paper waste at size changes between your setters over the last month.
- Count daily-wage workers who stayed through the last festival rush and those who left within a week.
- Ask the checker which bag defects the shop or caterer complained about most recently.
GullyHR can do this with you. Read how we approach performance management and incentive design in general, or share your requirements and we will tell you where to start.
Questions owners ask
Not much when it is a sample from each fixer at set times. A few bags checked in a minute stops a whole bundle being returned, which costs far more time.
Pay on passed bundles and have the checker, not the fixer, pick the sample. Fair feedback with the sample bag in hand works better than a warning.
Many units give a small share tied to waste at size changes and output hours. Agree the measure with the setters first, so they trust the figure.