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niteliters
12-13-2008, 08:41 PM
would like to hear some thoughts on this subject. Our system is going to have to become just that a system. something that we, the employees are aware of. What i would like to know is a way, throought the year that motivates us in a positive and trackable way so each guy can have more control over his bonus, rather than hope for the best...i.e. profit sharing

INTEGRA Bespoke Lighting
12-14-2008, 12:50 AM
One of the strongest ways of providing your employees with a bonus is to give them equity in the business. This does not have to mean that you are watering down your ownership or control position in the company. It does offer substantial remuneration and taxation advantages to both the employer and employee over a straight cash type of bonus package. It also helps to solidify and strengthen the loyalty of your employees to the business and gets them thinking in terms of improving the operating efficiency of the company. In the long run, an equity bonus is a great tool in that the employees now 'own' a portion of the company and as such are elligible to receive dividends as part of their remuneration package. Dividends are taxed at a much lower rate then income, offering the employee a much more rewarding position overall.

Talk to you accountant about "Golden Handcuffs". I think this is the most novel way to provide your employees with significant bonuses while at the same time ensuring your control and their loyalty and longevity with the company.

INTEGRA Bespoke Lighting
12-14-2008, 12:56 AM
Another effective way to provide a straight cash bonus to the employee, and encourage them to do a great job everyday, is to set up some performance based bonuses that can be measured.

One example is the "Craftsmanship Bonus" for installers. Here you set up a system whereby the installer will receive a $100 bonus for every new system installed that does not require any form of callback or warranty service by a specified date. So, if the installer puts 30 new systems in, and over the course 12months following these installations there is no need to return to site, the installer will end up with a $3000 bonus.

The nice thing about this for the employer is that the bonuses get metered out over a period of time and do not all come at once, which can be a big drain on the cashflow of a business.

The drawback of this, and other forms of cash bonuses, is that it can have a negative effect on the tax position of both employer and employee.

INTEGRA Bespoke Lighting
12-14-2008, 01:02 AM
Then there is the "Benefits Bonus": Here you provide your employee with some form of remuneration other then cash or equity, but something that will help improve the financial position of the employee none the less.

Examples are: Allow the employee the use of a company vehicle to commute to and from work. Here the employee will realize a real savings, having to spend less of their disposable income on transport, and the company can declare this use of the company vehicle as an expense. A much better tax footprint for both employer and employee.

Provide the Employee with a Fuel Credit Card. Much like the scenario above.

Pay for the Employee's extended medical insurance. Probably a very different scenario in the USA then it is here in Canada... enough said.

Pro-Scapes
12-14-2008, 08:46 AM
Chris I do not want to post about it here as my main competitor reads this site. If you want you can email me.

clcare2
12-14-2008, 12:33 PM
ANytime a customer compliments a worker or crew to me in a conversation or phone call, the employee gets $10 bucks. Its not a lot but when I walk up and hand a guy an extra 20 everynow and then they can see that I pay attention and that customers care enough to say something. Like I said, small but fairly effective.

JoeyD
12-15-2008, 01:30 PM
I know a lot of guys that have resorted to paying piece work to their employees and then like stated above give them a bonus at the end of the year based upon performance, work completed, and trouble free installs. Round here we get paid bonuses depending on salary and tenure.