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View Full Version : Performance based raises


hoyboy
10-07-2004, 09:17 AM
Hey everyone, I'd like your input. If you are like me, then you must get sick of employees coming up every year and asking for their usual raise. My gut reaction wants to say "you want more from me, but what extra do I get from you?"

Well, this next year I want to implement a system where everyone knows what they need to do to get a raise, and how much they will get. For example, I may have a list of 20 commonly used perennials and if a laborer can learn to identify them all, he get's an extra 25 cents/hour. I think it would be wise to have different "tiers" for different levels of employees. A foreman, for instance, was probably hired with the understanding that he already knows how to do certain things...he shouldn't get paid extra for, say, learning to run a bobcat. He may get a CLT, or get his pesticide operators license, or take a class, etc, etc,.

The idea is to make guys earn their raises. At the same time, it SHOULD make them feel better knowing they are not stuck at the bottom rung with no way up the ladder. Do this, get paid more. Do that, get paid more. Simple. This would be posted right out where everybody can see if. No more complaints about not getting paid enough.

I'd like to hear some ideas from some of you folks about what SPECIFIC tasks, talents, skills, etc. you would like your employees to learn, and what kind of raises you would be willing to pay for each of them. Here are some of my initial ideas...feel free to share yours. Please make them specific.

General laborer: (per hour)

.10 Demonstrate a mastering of running a walbehind mower (obstacle course?)

.05 Demonstrate ability to change filters and oil on a given machine.

.25 Learn to identify 20 commonly used perennials and how to prune them.

.25 Ability to run a skid loader through an obstacle course in a given time.

.50 Get a valid drivers license (for those without)

1.50 Get a CDL

.10 Take a class on a given subject (will provide a list)

1.0 Get an operator's license for pesticides

1.50 Pass a CLT exam

.05 vote for Bush...(heh heh, just kidding)

.10 demonstrate the proper way to plant a tree or shrub.

.20 demonstrate the ability to properly identify a number of weeds



Ok, I have more. But you get the idea. I'd like to hear your ideas.


Thanks!

Dan






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bobbygedd
10-07-2004, 09:29 AM
since you're "employed by the customer", ask them first for a raise, if they say yes, then you can let some flow down to your workers

hoyboy
10-07-2004, 09:30 AM
bobbygedd

Did you think of that all by yourself?

Mo Green
10-07-2004, 09:42 AM
I aleays feel that it is important to treat employees the same way that I would want to be treated if I were working for some one else. There should always be some sort of cost of living raise done every year. You can't expect them to live their lives and pay their bills every year with out one. It should be at least 3% of their annual pay. As I'm sure that you raise your prices each year. If not, then it is something you should consider.

Also, like you said, there should be some pay for performance raises. This will give them the drive to better themselves and work harder. I think a great way to reward your employees is a nice bonus every now and then. This shows them that you are watching what they are doing and that you appreciate extra effort. You may be suprised at how morale will go up and all the raise questions will come with less frequency. ALways remember that if have hired the right people: a happy employee is a productive employee.

lars
10-07-2004, 02:02 PM
I really like the idea, however I think it needs a little tweaking. Rather than posting a list it may be better to sit down with the employee for a goal setting meeting. Tell them your intentions one on one and set goals. Mabye it is more important that they know how to plant trees properly than have a CDL. Mabye your head installation guy wants to get his applicator's licensce for more pay. Does he need it? Is he better off taking a class? Some of your requirements should be standard. In special cases, you may want to change the raise amount depending on person or situation. The point is be clear of what your employees want and make it clear what you want out of them. Set some goals with them and if they are met, they will be rewarded.

Trevors Lawn Care
10-07-2004, 03:48 PM
I really like the idea, however I think it needs a little tweaking. Rather than posting a list it may be better to sit down with the employee for a goal setting meeting. Tell them your intentions one on one and set goals. Mabye it is more important that they know how to plant trees properly than have a CDL. Mabye your head installation guy wants to get his applicator's licensce for more pay. Does he need it? Is he better off taking a class? Some of your requirements should be standard. In special cases, you may want to change the raise amount depending on person or situation. The point is be clear of what your employees want and make it clear what you want out of them. Set some goals with them and if they are met, they will be rewarded.


Eventually though...your employees will have all the knowledge you do, if not more, and will ask themselves "why make 14.34/hour when i can start on my own and make $100/hour." Probably unlikely but it could happen.

Trevor

out4now
10-07-2004, 03:52 PM
Idea sounds good just needs a little fine tuning. I have a CDL and I would be pissed if all I got for it was an extra 1.50 an hour. Guarentee I wouldn't do any commercial driving for that. Might as well go drive for Swift and make .25 cents a mile. Even though their trucks are governed at 62 MPH that's still over 15 an hour in the a/c.