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Compensation And Six Sigma Black Belts

Aug 17, 2007
By giving due recognition to an employee for their hard work, they can be motivated to perform better. Observed in different companies and institutions, the job of an employee can appreciated by means of incentives or additional compensation.

In Six Sigma, an important tool used in business, the team's quality improvement and potentiality to excel is gauged. Being a continuous process, it is very often termed as a leadership philosophy, in which case, the commitment and dedication of the workers are also taken into consideration.

Three different levels of experts on a day-to-day basis manage the Six Sigma program. These experts comprise of the Master Black Belt, the black belt and the green belt. Team leaders and members need to be given a satisfactory compensation, as it is instrumental in building a sense of accomplishment and loyalty in them.

The primary function of the Black Belts is to lead and create teams implementing Six Sigma. Even though the objective is implementation of a measurement-based strategy there are no written rules and norms for the compensation of the six-sigma leaders or the team members. Being able to explain the Six Sigma principles and philosophies very effectively, black belts are a key to the Six Sigma process. Therefore, it is necessary to compensate their work accordingly.

Job Of The Black Belts

One of the most important elements of the Six Sigma project is to identify and appoint the Black belts. The black belts are not be formally trained in the engineering or statistician field they belong to. However, taking their ability and knowledge in to consideration, they could be assigned with various roles both in technical or statistical aspects. They are expected to read the statistical reports and formulate necessary remedies for all the loopholes involved. One of the many jobs of the black belt is to keep the team members informed about the project updates in the various departments. This also involves policymaking and rewarding or correcting failures done by the members.

Managing Compensation Issues

In accordance with Six Sigma principles, Black Belts have a considerable understanding of the DMAIC model (define, measure, analyze, improve, control). Companies could formulate a team-based bonus system for the improvement of every single member of the Six Sigma project. These members are the most valuable assets for the company, and timely recognition should be given. The bonuses should be goal oriented.

According to the Six Sigma Academy, completing nearly 4 to 6 projects per year, Black Belts save approximately $230,000 per project. The base pay offered to the level of the Six Sigma employees should be in the organizations top featured range. If another employee, for e.g. the manager, is asked to devote some of his time to the Six Sigma process, his contribution should also be equally compensated.

Innovative ways to give the six-sigma employees their deserved compensation should be thought of. Other than the base pay given, special recognition namely through award ceremonies, dinner parties or plaques could also be given. These acknowledgements act as a boost to the morale of not only the Black Belts, but also the other members of the Six Sigma project.

Additionally, the team's performance also depends on the leaders way of working. If a black belt is not satisfied with the compensation allotted, it could lead to a plummeting team performance affecting the company's profit in return. Therefore, to help the company to keep profits intact and the workers to be contented with their job, proper acknowledgement should be given from time to time.
About the Author
Tony Jacowski is a quality analyst for The MBA Journal. Aveta Solution's Six Sigma Online offers online six sigma training and certification classes for lean six sigma, black belts, green belts, and yellow belts.
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