Warehouses are under increasing pressure to do more—with fewer resources. Throughput targets are rising, labor markets are tightening, and operational budgets are being scrutinized more than ever. For many organizations, the ability to stay competitive hinges on finding smarter, more sustainable workforce strategies.
One model that’s delivering measurable results is team-based productivity pay—an approach that compensates teams based on their collective output. At Eclipse Advantage, we’ve implemented this model across dozens of sites, helping clients improve productivity, reduce turnover, and build stronger workplace cultures.
If you’re exploring ways to improve labor efficiency and stabilize your operation, here’s why the team-based approach is worth serious consideration.
Team-Based Pay (TBP), sometimes referred to as a pool pay or Cost Per Unit (CPU) model, ties compensation to a team’s collective performance. Instead of rewarding individuals based on solo output, TBP measures what the team achieves together—such as the number of trucks unloaded or containers processed—and distributes pay evenly among members.
This model shifts the focus from individual effort to shared responsibility. It fosters peer accountability, eliminates favoritism, and encourages cross-support. In real terms, that means faster onboarding for new hires, stronger day-to-day collaboration, and fewer silos.
In a team-pay environment, productivity becomes a shared goal. If one associate finishes a load early, they’re incentivized to help elsewhere—because everyone benefits from higher output. Unlike individual pay structures, which can create fragmentation, TBP encourages adaptability and a unified pace.
At Eclipse Advantage sites, we’ve consistently seen that team-based models outperform individual ones. With the right leadership and tracking tools in place, clients often experience double-digit gains in throughput within weeks of transitioning.
One of the most common misconceptions about TBP is that it limits earning potential. In fact, the opposite is true.
Because productivity rises, team earnings increase—often significantly. At one client site, average hourly wages rose from $12 to $21 within a year, while the client’s cost per unit remained flat. By linking pay to performance, you create an environment where teams can consistently earn more without inflating your labor budget.
Turnover remains one of the most costly challenges in warehouse operations. Training, onboarding, and lost productivity from attrition add up quickly—and create constant instability.
TBP addresses this by giving more employees a path to meaningful, reliable income. Rather than watching lower earners churn due to underperformance or burnout, teams support one another—and earn more together. The result is a stronger sense of ownership and a dramatic reduction in attrition. One Eclipse Advantage client saw turnover drop from 180% to just 28% within months of implementing TBP.
This model requires a more engaged management style—and that’s a good thing. Team-based pay demands leaders who are present, responsive, and tuned into what’s happening on the floor.
Supervisors shift from task managers to team coaches. High-performing associates naturally step into mentorship roles, helping onboard and guide newer employees. Over time, this cultivates a deeper leadership bench within your operation—and strengthens your culture from the inside out.
When compensation is tied to shared success, the culture shifts. Associates are no longer just showing up for individual gain—they’re invested in team performance. Managers and team members alike spend more time in the trenches together, driving toward common goals.
This type of environment creates natural accountability and a shared sense of purpose. In short, it transforms the warehouse floor into a more stable, collaborative, and engaged workplace.
It’s a fair question—and one we hear often. If everyone on the team earns the same rate, what happens to your top producers?
At Eclipse Advantage, we’ve developed proven strategies to retain high performers during the transition, including short-term earning guarantees and targeted incentive structures. And while some initial attrition can occur, the long-term gains typically far outweigh it. In nearly every transition we’ve led, clients have seen net productivity increase between 10–15% within weeks—and wage levels rise without pushing up labor costs.
A Track Record of Success
At one 75-person site, Eclipse Advantage transitioned the operation from an individual pay structure to team-based productivity pay. The results were immediate:
Over the past three years, we’ve supported transitions at 14 different sites, all of which experienced higher team earnings and increased productivity—without an increase in client labor spend. In nearly 20 years of operations, we’ve never seen a site revert back.
If you’re looking for ways to increase throughput, improve employee engagement, and manage labor cost with more precision, team-based productivity pay may be the solution. Our specialists can walk you through the model, explore its fit for your operation, and develop a transition plan that works for your team.
Get in touch with Eclipse Advantage today to start the conversation.