Originally Posted by foreplease
First, it was great of you to share that much in depth information. Do I understand it right: they make less as a percentage after hitting their goal if they continue to work (10%) than they do throughout the week (12% = 600/5000)?
It seems like you have a system pretty well thought out. Wondering what kind of turnover you have?
No, their weekly salary is their weekly salary. They get paid their salary once the $5000 is hit - regardless of hours. The bonus is completely different. They simply receive a bonus for all the money over the $5000 for the week. Example -> Tech. billed $6500 for the week. That is $1500 over their goal. Bonus = $150 (untaxed). So the tech receives his weekly salary plus his $150 bonus.
It does work well and the tech's seem to really like it. The beauty is that they have options. They can essentially take a whole day off and still get paid for the whole week. I've had guys who have had Dr's appointments or whatever say on a Tuesday. Mon, Wed, Thurs, and Fri they bust their buts to hit that $5000 and still get their full salary for the week. Hitting your goal in four days usually requires four 10 or 11 hour days but they are glad to do it. They also always have the option of making more money by producing more. It's a win - win for the techs and the company.