Tag Archive: Workforce Development

  1. The 3 KPIs Every Employee Watches at Our Massachusetts Machine Shop

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    At our Massachusetts machine shop, we offer all the essentials you’d expect in a reliable manufacturing partner, from high-tech equipment to tight tolerances. But there’s one attribute critical to successful collaboration that’s often overlooked, and it’s an area where Peerless Precision excels: stability.

    In 2026, we will be celebrating 50 years of Pride in Precision, so whether you need a precision parts manufacturer today or five years from now, you can count on us. That kind of longevity only happens through careful planning and coordinated management. Stability requires you to constantly invest in the best team and ensure every member—both new employees and veteran staff, from Baby Boomers to Gen Z—is aligned and moving toward the same shop goals.

    One way we achieve that: a profit-sharing program for every employee based on clearly defined KPIs. Here’s how it works, and why it helps to ensure our customers receive quality results over the long-term.

    Improving Results With a Smarter Approach to Bonuses

    Many precision machine shops offer a bonus program of some sort, where employees will be rewarded based on individual or company-wide performance. At Peerless Precision, we used to follow a similar model, until President Kristin Carlson noticed a problem: bonuses were becoming an expectation, even during slower periods. The rewards felt disconnected from the actual performance of our business or the quality of our work.

    She rethought the program and transitioned to a profit-sharing model. Now, employee rewards are directly tied to our company’s performance and our customer outcomes. When Peerless does well, our team shares in that success.

    The motivation was simple: if our team felt more connected to our mission and saw how their work impacts overall results, they’d be most invested in doing great work.

    The Three Critical KPIs That Drive Performance

    To create an effective program, we required an objective set of criteria to track performance. These metrics needed to matter to both our shop and, ultimately, to our customers. We landed on three key performance indicators (KPIs):

    1. On-time delivery is self-explanatory. At our Massachusetts machine shop, reliability is central to our reputation. Our customers depend on us to deliver when we say we will.
    2. Scrap rate isn’t directly visible to customers, but it’s ultimately reflected in our efficiency and our project costs. Some scrap is inevitable in tight-tolerance machining and employee training, but we never want it to become an accepted part of our process.
    3. Profit may sound like an internal concern, but it really is important, even for our customers. Strong margins reflect operational efficiency, smart quoting, and Lean processes. Low or non-existent profits aren’t sustainable for us or for our customers.

    We grade each KPI on a scale of 1 to 3. For instance, a scrap rate of 2% earns a 1, while anything below 1% would earn a 3. Based on the sum of our ratings in these three categories, we determine the payment our team receives.

    It’s objective, transparent, and directly linked to the quality our customers see.

    What We’ve Seen So Far

    We’ve found that this structure helps team members see the connection between their daily performance and the shop’s overall success. When any metric slips, they rally together to troubleshoot and improve. It creates a friendly, results-driven competition among the entire team.

    Massachusetts machine shop

    For leadership, Kristin notes, there’s nothing better than handing out payments and seeing people proud of their work. Recognition is part of our culture. It’s why we host shop parties, bring in food trucks, schedule team outings, and more.

    Our shop spans all generations and backgrounds, but one thing is universal: people do their best work when they feel valued.

    Experience the Results on Your Next Project

    Programs like this are one reason our customers receive high-quality work from Peerless Precision. Whether you need 5-axis machining, laser welding services, or other complex manufacturing work, we’re ready.

    Request a quote today and collaborate with a team that’s aligned, accountable, and motivated to deliver!

  2. Employee Retention in Manufacturing: How We Build a Great Team for the Long Term

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    At Peerless Precision, we take pride in how long our team members stay with us. This year, we’ve already celebrated one 30-year employee anniversary and two 25-year anniversaries, with more 5-year and 10-year anniversaries on the horizon than we can count.

    Whenever our president, Kristin Carlson, mentions this to an industry peer, there’s always one response: “How do you guys keep people for so long?”

    Her answer is simple: treat people right. The same values that lead to employee retention in manufacturing—values like integrity, consistency, and genuine care—are the same values that allow our precision machine shop to deliver excellent results to our customers.

    Staying Grounded Through Industry Shifts

    The manufacturing industry has changed constantly over the past several decades, but the COVID pandemic brought unprecedented challenges. Shops around the country struggled with retirements, turnover, and concerns about health and safety, and it became hard to keep experienced employees on board.

    At Peerless Precision, we weren’t spared these difficulties—we faced retirements and saw a few valuable team members move on to other opportunities. But overall, we came through it in a strong position by adapting to the times while staying rooted in the values that have kept our shop steady for decades.

    What We’ve Learned About Employee Retention in Manufacturing

    Employee retention advice often revolves around competitive wages and benefits—these are critical, but it takes more than that. Here are some of the other principles we live by:

    Hire for the Long-Term

    We know that manufacturing is a career—we don’t hire people for short-term needs, intending to lay them off after a few months. This would be unfair not only to a new hire but to our existing employees.

    We’re committed to building a team for the long haul and always back it up with action. When turmoil hits, layoffs aren’t our go-to solution. In fact, we always reduce leadership pay before ever letting an employee go in these situations.

    Prioritize Character Over Resume

    Many shops only seek out tenured employees with extensive experience, afraid to take on the challenge of training. While we value experience, we also see potential. If someone without experience shows the right attitude and aptitude, we will invest in training them to become a great machinist and an essential part of our precision machining services.

    Embrace Flexibility and Manage Like a Human

    Throughout our time in business, we have tried to stay flexible with our employees. We understand that life happens—whether it’s a sick parent, recovering from surgery, or needing to drop kids off at school.

    During COVID especially, countless logistical challenges arose in everyday life amid so many challenging shutdowns and unpredictable policy shifts. As long as our team communicates, we do everything we can to support them.

    Employee retention in manufacturingCelebrate and Appreciate Your Team

    Precision machining is exciting work, but it can be challenging. We always try to show our appreciation with fun celebrations for the team.

    We’ve hosted baking competitions, barbecues, axe-throwing events, and team outings to Red Sox games. No “forced fun” or pressure to join— it’s just our way of saying thank you to those who want to participate.

    Show You’re All In

    At Peerless, we’re in this together. If a new hire’s first role isn’t the right fit, we help them find the right one. That kind of support builds loyalty from the start. We’ve even had co-op students join our team straight out of high school because they knew we were dedicated to setting them up for success.

    An Engaged Team Creates the Best Results

    No matter how advanced your equipment is, it’s your team that ultimately drives quality. That’s why we invest so much in ensuring our team is comfortable, well-trained, and ready to produce the best results. Long-term employee retention in manufacturing makes all the difference in maintaining consistency and excellence.

    Whether you need laser welding services or tight tolerance machining, you can count on Peerless Precision to deliver today and for the long haul, because our dedicated team is here to stay.

    Request a quote today and partner with a team that’s built to last!