View Full Version : Incentive Plans - carry over from "hundreds of yards" thread

05-01-2010, 09:38 AM
This quote is from the "How to get hundreds of yards thread"

3. Pay a low hourly rate, but a very nice monthly bonus based on profit of the route. Break a mower? Less profit, less bonus. Have to redo a lawn because you didnt do it right the first time? Less profit, less bonus. Mow more lawns in less hours? More profit, bigger bonus.

Controlling labor was the toughest part. By using a bonus system like I do in my business now, everyone takes ownership, and everyone is directly affected by how well the company does. No longer am I the only one to take the hit if a machine gets bashed up. Its a self policing system. It also provides for the ability for a laborer to make a very nice living compared to working straight hourly......

This fits with my overall management philosophy. I want my employees in any endeavor to be making money like mad, but I want them to be earning it with incentives. If my incentive plan is well structured, we will both make money. I'm curious how many of you use incentive plans and if you do, how you structure them.