Commission Plan for employees ??

Discussion in 'Lawn Mowing' started by jccordes2, Dec 13, 2004.

  1. jccordes2

    jccordes2 LawnSite Member
    Posts: 124

    This is more of a question to all the seasoned LCO's here.

    Have any of you ever used an incentive plan along with a Salary/per HR rate of pay?

    Example, having employees find more accounts thru word of mouth, flyers and/or looking for more business on there off time.

    I had an idea of offering a certain amount $$ ?? per new account. and offer this continuoisly through out the season to keep a good employee.
    it would be an incentive to find new business for me, and an incentive to make more money thru the season for him.

    Some ideas I kicked around were maybe 10% percent of that account he aquired was paid to him as long as we had the account.
    thinking we get a $60 account, he get's $6.00 per mow, $24 a month more.

    I have read so many horor stories here on keeping good employees in this industry, that i almost think I want to start off with this??

    I helped run a Wireless company for 9 years, I know that good employees stick around if they can see more money at the end of the road.

    what have you guys here done/do to to keep good employees with you year after year? how do you increase there pay?

    any suggestions/advice is welcome!

    Jeff
     
  2. bobbygedd

    bobbygedd LawnSite Fanatic
    from NJ
    Posts: 10,178

    no way. i would never ever suggest an employee correspond with a potential client. you already taught him how to mow, wack, and edge on a professional level. he knows where your distributors are. now, let him get comfortable with dealing with clients, and when he knows enough now to start his own business. it wont be long before you are out of a good employee, and created your own competition.
     
  3. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    Just as we offer an incentive for referral work from our customers, I do the same with my employees. Hell, I figure that is the least I can do since they are helping me get new business. And at the same time, it is helping them out as well with more and more hours.

    BTW, I give them 2 times the weekly mowing rate for that new account.
     
  4. jccordes2

    jccordes2 LawnSite Member
    Posts: 124

    Boddygedd,

    I thought of that also!! it may be to much of a gamble??

    do you just stick to a flat hourly rate? any changes in Comp?? how do you justify a raise??

    thanks
     
  5. out4now

    out4now LawnSite Bronze Member
    from AZ
    Posts: 1,796

    I could see a performance bonus, like getting more efficient so you could do more accounts in a day. Makes a better employee but keeps them out of the pricing game and so forth. Like bobby said once they know the pricing structure and learn to communicate bye, bye employe, hello to another LCO.
     

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