Incentive Program Sparks Profits
Camarillo-based Power-One Inc. tossed an especially green St. Patrick’s Day party last week for its 200 Ventura County employees.
As a reward for a successful year, the company paid out $342,000 in bonuses--an average of $1,700 per person. That brings the bonuses received worldwide this year by Power-One’s employees to $500,000.
“It was the first year of our new incentive program, and we’re very pleased with the way it’s worked out,” says Steve Goldman, Power-One’s president and chief executive. “We announced specific goals, and everyone rallied to reach them. It’s only appropriate that the rewards should be shared with the employees.”
Power-One is a privately held company that produces power equipment for the industrial, telecommunications, data-processing and medical markets.
Since an incentive program was introduced in January, 1993, employees have responded by improving product quality, cutting costs and speeding up the introduction of new products, Goldman reported.
In contrast to many other California electronics concerns, Power-One showed strong increases in sales and profits last year. Goldman gives much of the credit for the gains to the new incentive program. Company revenues rose almost 8%, to $60 million, while profits jumped more than 50%. Goldman declined to disclose the profit figure, but said he expects a similar percentage increase in earnings and a 15% rise in sales in 1994.
“We’re definitely continuing the incentive program,” Goldman said. “Our employees say they’ll not only reach this year’s goals, but that we’re going to make even greater improvements.”
Power-One this year plans a major upgrading of its 100,000-square-foot plant on Calle Plano, including the expansion of an automated sheet-metal shop and the addition of new manufacturing equipment. About a dozen new employees will be hired in Camarillo this year, mostly skilled sheet-metal workers, Goldman said.
Power-One has a worldwide payroll of about 1,000. In addition to its Camarillo headquarters, the company has factories in Mexico and Puerto Rico.
