| One of the more ambiguous elements of a Six Sigma | | | | of recognition to boost morale. |
| project is the level and type of compensation the | | | | Monetary bonuses are another way to compensate |
| organization should give to its Six Sigma leaders and | | | | people for successful Six Sigma projects. Since Six |
| team members. On the one hand, setting | | | | Sigma projects are about helping the organization |
| compensation is not an integral part of any stage of a | | | | make more money it makes sense to share some of |
| Six Sigma project; on the other hand, compensation is | | | | the cost savings from Six Sigma projects with the Six |
| an important instrument to build loyalty and a sense of | | | | Sigma team. Develop a structured, team-based |
| accomplishment that is a crucial element to the | | | | process improvement bonus system that will |
| organization's Six Sigma success. While there are no | | | | appropriately benefit each worker in the organization. |
| hard and fast rules for compensation for Six Sigma | | | | As measurable and lasting improvements are made to |
| leaders and team members, there are some good | | | | processes, it is appropriate to share a part of the |
| ways to think about how to productively provide | | | | financial gains with employees. Just be sure there is a |
| compensation to your people. | | | | formal performance appraisal system that will identify |
| Black Belts are the key change agents for the Six | | | | what is to be accomplished, what success looks and |
| Sigma process. They have an important role and | | | | feels like, and how an employee will be compensated, |
| should be compensated accordingly. If your | | | | and that this is fully communicated to everyone. Such |
| organization is large enough to have people dedicated | | | | an organizational goal-sharing program will effectively |
| full-time to leading Six Sigma projects, their base pay | | | | support Six Sigma efforts. Being able to link |
| should be in the top of your organization's range for | | | | compensation to Six Sigma implementation is much |
| their level of management. If your organization is asking | | | | easier in a small company compared to a larger |
| a manager to also devote part of his or her time to | | | | company. |
| leading a Six Sigma project, you need to find some | | | | Bonuses can also be paid to Black Belts, but with |
| way to compensate them for their extra efforts. In | | | | differences due to their unique status. Instead of |
| addition to base pay, you can find creative ways for | | | | paying bonuses to Black Belts as a share of actual |
| recognition for completed projects. Black Belts should | | | | process improvement, pay them bonuses related to |
| receive some special and public recognition for their | | | | specific project goals. There is a danger in directly |
| efforts, whether it is dinners, award ceremonies, | | | | tying their bonus with a share of the actual |
| plaques, etc. Whatever fits best with your | | | | improvements as they may be motivated to inflate or |
| organizational culture. Such recognitions should not be | | | | misconstrue actual gains. That still leaves you with |
| strictly limited to Black Belts either, as acknowledging | | | | many concrete project milestones that can be the |
| the achievements of all who participated in and benefit | | | | basis for their compensation. |
| from the Six Sigma project should receive some sort | | | | |