Discussion in 'Business Operations' started by mlbock, Mar 19, 2008.

  1. mlbock

    mlbock LawnSite Member
    Posts: 10

    Does anyone pay bonuses or have a profit sharing plan? I'm playing with the idea of giving out bonuses based on bid vs. actual hours as well as a profit sharing plan with the majority of the payout coming from an employees division(lwn mnt, lndscping, irrigation, etc)and then the remainder of the bonus coming from all other divisions. I'm looking for details - how you do it, percentages paid, etc. I'm trying to instill a sense of ownership as well as a "git 'er done" attitiude. I would appreciate your input. Feel free to email me with more details if you would.
  2. shovelracer

    shovelracer LawnSite Silver Member
    Posts: 2,009

    I give bonuses for performance and at the end of the year. The performance would be for someone going above and beyond what there fellow workers do. If everyone busts all week and gets a job done under hours and all is well Ill take them out to lunch and throw them a few bucks. If there is optional work over the weekend after a long week, and someone comes in and works like they are happy to be there they get another kick. Usually give a few more for July 4th to get them some burgers and beers. And then there is the big one, the end of the year. I offer an end of the year bonus to all my employees that have worked at least half the year, ,and stay till the last day. It usually amounts to $3-500 each. Usually based on amount of hours worked all year X $0.50. This gets them through the holidays and ensures that they finish the leaf cleanups. Keeps them from acting up about cold wet miserable work due to the fear of getting fired.
  3. Az Gardener

    Az Gardener LawnSite Gold Member
    Posts: 3,899

    I am working on an incentive based program myself right now. I have been calling it our gitter dunn system too :laugh: I am thinking a base pay rate with weekly goals that triggers higher rates for the week. Some others that are monthly or quarterly based. We are thinking one for hitting our production goal one for customer satisfaction, one for passing a weekly on the job surprise inspection, and one for completing paperwork.

    I would like the guys to be able to make up to 3.00 per hour more above the base every week if they are performing at a high level. I have never been so excited to spend money in my life but I know if we are doing these 4 Items we will be very successful. I have not worked out all the details yet. I would also be interested to see if anyone else has been exposed to similar programs.
  4. shovelracer

    shovelracer LawnSite Silver Member
    Posts: 2,009

    That sounds like a good program to me. A lot of work though. If I was a worker I would try real hard to make an extra 120+ a week. My guys are happy to get much smaller kicks, but then there are the ones that wont ever work better regardless of price. Your luck those even show up, if that much.
  5. mlbock

    mlbock LawnSite Member
    Posts: 10

    We do that now...seems the only way to get them to stick it out when its 38 degrees, raining and they are raking leaves!! Do you do any type of profit sharing? Our challenge isn't so much the job site performance, it's slowing down @ $.25 gallon, it's shutting off the lights, its keeping down the heat!! These are all little things that add up to big dollars on a large facility !
  6. creatived

    creatived LawnSite Member
    Posts: 69

    Bonuses, Hell Yes If You Have Productive Honest Employee's Keep Them Happy Very Happy Because If You Dont The Compitition Will Hire Them Or They Will Go Out On Their Own. You Dont Want Any One To Ever Work For You With Too Much Information. Good Work Makes You The Best In Town Period.
  7. bob the king

    bob the king LawnSite Member
    Posts: 13

    I started one this year. its simple. If a guy goes above and beyond or has a full week of good attendance they get a thank you card. anyone in the organization can give another a thank you card but I must sign off on it. 10 cards they can turn them in and they get a $20 gas card. a couple guys have been getting 5-10 cards a week, so good guys get compensated. $20 in gas makes a happy guy.
  8. mlbock

    mlbock LawnSite Member
    Posts: 10

    that's agreat idea, I never thought of. We've done dinners, tickets, things like that in the past. Do you do anything at the end of the year tied to the overall profitability of the company?
  9. GatorLawnCare

    GatorLawnCare LawnSite Member
    Posts: 59

    i tried that and it did nothing to motivated a loser that always needed to be watched. i said $300 bonus if you get this landscape job done in 3 days. it took 1 week. needless to say hes fired.
  10. Superior L & L

    Superior L & L LawnSite Senior Member
    Posts: 567

    I like the thank you card idea, that is cool. I think lots of little things are nice. In the past we used to do year end bonuses. $300-$700 depending on who and what you do in the company. The problem is it ended up these guys expected it evey year and then got p!ssed if they didnt get a bigger one than the year past. Last year we eliminated was just not in the budget.

    The problem with production bonuses is there are lots of variables. The foreman will blame the sales guy for not bidding enough hours on the job and the sales guy will say they are working too slow.

    We have a GOOD christmas party every year booze, food prizes(flat screen tv)

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