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magicmike
11-14-2011, 01:53 PM
Has/does anyone pay their employees a certain amount of money an hour and also give them a bonus based on how many houses they get done a day? If so has it worked out good or bad?

Agape
11-14-2011, 02:15 PM
I think a bonus system would cause shortcuts to be taken, so your quality would take a dive as well as your profit margins.

Also you will get a lot of statements to the effect that the best bonus/incentive is that the employees get to keep their jobs.
IMO

C & T Landscaping
11-14-2011, 03:11 PM
I think a bonus system would cause shortcuts to be taken, so your quality would take a dive as well as your profit margins.

IMO

I agree, they will stop working to make each yard look good and just try to get in as many yards as possible which means them rushing at the accounts and in between...and we all now what happens when people are in a rush and are driving.

magicmike
11-14-2011, 03:15 PM
good point

Dr.NewEarth
11-14-2011, 04:55 PM
Check you local laws regarding employment. You should be paying an Employee by the hour.

magicmike
11-14-2011, 06:50 PM
Check you local laws regarding employment. You should be paying an Employee by the hour.

I understand that i said pay them by the hour + a bonus for each house completed which i was thinking might stop guys from slacking but it would also hurt the quality of the lawn care service (like the previous people said) but thanks for your reply

billpiper
11-15-2011, 08:03 AM
A way to provide an incentive may be a bonus based upon frofitabilty - profit sharing. The reason we want them to get done quickly and do a good job is because it increases profits and gets us more customers. If you keep real books, you may be able to take your P&L and possibly pay some percentage of profits as a bonus on a quarterly basis. Paying weekly or monthly wouldn't be very feasible, I would think.

DEPENDABLE LANDSCAPING
11-15-2011, 08:19 AM
We don't do speed performance based bonuses. But on any given week at random if someone has done a nice job on a particular project or mow route we will throw them a bone to say thank you.
Posted via Mobile Device

AI Inc
11-15-2011, 08:28 AM
Better to give them bonuses for getting new customers in existing hoods.

AintNoFun
11-15-2011, 09:33 AM
so tie the bonus system to customer satisfaction.. they get complaints the bonus goes down..

Ticolawnllc
11-15-2011, 10:03 AM
I think a "The house looks great" form the costomer, bonus. That migh work. Any one do that. I to am tring to get the guy to up their game. Or maybe something to make sure they finish the week with no client left behind. During spring and fall rains.

seabee24
11-16-2011, 12:47 PM
tried a couple things

1. if the customer would call me or email me with a compliment to the crew, i would pay out $10.00 to each guy on Friday to that crew member. the good side of things....it means the customer was truly happy, and the crew interacted with the customer giving them the "happy good feelings" about our company. It has also given me good marketing material with customer referrals.

the bad side to that, when we started doing it...seemed like every job that they were on, i was getting calls, so odds are they told the customer----not sure if thats a good thing or not.


2.i have not tried this yet - but next season im going to. second thing is like a profit share....set goals for a month or quarter. then break it out per day, and per week. at first you need to expect them to "rush things" because they want their bonus. but they will screw up and get a complaint.....so you yell at them, and tell them to go back and fix it....then at the end of the week, you yell again and say "why are your numbers for thursday so low?"....they will respond they had to fix that job....suddenly you point out that rushing the jobs and not doing it right cost them part of their bonus....and hopefully it clicks in their minds that its better to do the job right the first time. and I calculate the profitablity using replacement tools, parts, fuel.....so if they loose things or are wasteful they only hurt themselves

I might add, I plan on calculating the bonus at the end of every month, paying it out monthly...but 30 days after. IF any member gets fired or quits his bonus for 30-60 days worth goes back to the company for training someone new.

seabee24
11-16-2011, 12:54 PM
I also read that its best to have a bonus system that the members can not calculate on their own...you do need to have a formula to justify how you come to that number.....but if they can calculate it....they will......and if they do, they will EXPECT IT.....and in their minds if they "expect it" ...and you don't pay it out.... " in their minds your shorting them"

Ticolawnllc
11-16-2011, 02:05 PM
tried a couple things

1. if the customer would call me or email me with a compliment to the crew, i would pay out $10.00 to each guy on Friday to that crew member. the good side of things....it means the customer was truly happy, and the crew interacted with the customer giving them the "happy good feelings" about our company. It has also given me good marketing material with customer referrals.

the bad side to that, when we started doing it...seemed like every job that they were on, i was getting calls, so odds are they told the customer----not sure if thats a good thing or not.


2.i have not tried this yet - but next season im going to. second thing is like a profit share....set goals for a month or quarter. then break it out per day, and per week. at first you need to expect them to "rush things" because they want their bonus. but they will screw up and get a complaint.....so you yell at them, and tell them to go back and fix it....then at the end of the week, you yell again and say "why are your numbers for thursday so low?"....they will respond they had to fix that job....suddenly you point out that rushing the jobs and not doing it right cost them part of their bonus....and hopefully it clicks in their minds that its better to do the job right the first time. and I calculate the profitablity using replacement tools, parts, fuel.....so if they loose things or are wasteful they only hurt themselves

I might add, I plan on calculating the bonus at the end of every month, paying it out monthly...but 30 days after. IF any member gets fired or quits his bonus for 30-60 days worth goes back to the company for training someone new.

I also thought of doing a big end of year bonus with deductions for being late, not finishing work load, pissing me off. not using uniform ect... any ideas?

landscaper22
11-16-2011, 03:10 PM
My idea of a bonus would be, as mentioned, more of a performance bonus rather than number of jobs completed. The system I was thinking of implementing is basically pay the employee per hour. Then set up guidelines for bonus that basically would be based on customer satisfaction/complaints, attendance record/being on time, and taking care with equipment (treat it like you have to pay for it). The whole idea of a bonus for me is to ensure that the employee will slow down enough to make sure the job is done right. Also, to make sure just because he/she didn't buy my expensive z mowers/blowers etc. that they still realize that by NOT running my equipment over with the truck, or NOT leaving my nice blower by the road out of their sight to be stolen, and by NOT horse playing on the z mowers gets them rewarded.
I have not implemented anything yet, but I was thinking of something like 50 to 75 cents per hour bonus paid monthly, quarterly, or even twice per year so that it adds up. Then set up the guidelines. It obviously wouldn't be fair to take an entire year of bonus away for a couple of small complaints. But, set some straight forward guidelines and it would motivate (I hope) Just my thought. I $500-600 bonus check in June, and another in December, just for basically taking pride in my work and job, would motivate me.

Ticolawnllc
11-16-2011, 03:53 PM
My idea of a bonus would be, as mentioned, more of a performance bonus rather than number of jobs completed. The system I was thinking of implementing is basically pay the employee per hour. Then set up guidelines for bonus that basically would be based on customer satisfaction/complaints, attendance record/being on time, and taking care with equipment (treat it like you have to pay for it). The whole idea of a bonus for me is to ensure that the employee will slow down enough to make sure the job is done right. Also, to make sure just because he/she didn't buy my expensive z mowers/blowers etc. that they still realize that by NOT running my equipment over with the truck, or NOT leaving my nice blower by the road out of their sight to be stolen, and by NOT horse playing on the z mowers gets them rewarded.
I have not implemented anything yet, but I was thinking of something like 50 to 75 cents per hour bonus paid monthly, quarterly, or even twice per year so that it adds up. Then set up the guidelines. It obviously wouldn't be fair to take an entire year of bonus away for a couple of small complaints. But, set some straight forward guidelines and it would motivate (I hope) Just my thought. I $500-600 bonus check in June, and another in December, just for basically taking pride in my work and job, would motivate me.

I was thinking yearly but you have a point with the quarterly. Some guys don't have the drive to make it that long. An extra $100 or so at the end of the month might work. It would be a lot of work keeping track. I'll let you try first. Let me know how it gos.

landscaper22
11-16-2011, 04:10 PM
I was thinking yearly but you have a point with the quarterly. Some guys don't have the drive to make it that long. An extra $100 or so at the end of the month might work. It would be a lot of work keeping track. I'll let you try first. Let me know how it gos.
Haha...I may next year. It shouldn't be difficult. It will be easy to track employee hours, so maybe just have an excel spread sheet to calculate the bonus for you. You're right it is difficult to keep a good employee sometimes in this biz. But, when I find one I want to hold on to, I will offer whatever incentives I can to keep the person.