Employee Incentives?

Discussion in 'Lawn Mowing' started by John Deere, Feb 20, 2000.

  1. John Deere

    John Deere LawnSite Member
    Posts: 128

    For those of you who employee, what type of incentives do you offer your employees? In the dog days of the summer when going to work is dreaded by your employees how do you keep them motivated. Obviously money is a great motivater, but what ways do you pay your employees other than just hourly if at all. I would like different ideas like bonuses?, vacation time?, insurance? or just anything else. Thanks for your ideas!
     
  2. HOMER

    HOMER LawnSite Gold Member
    Posts: 3,183

    I have a 16x32 swimming pool and a grill.<p>Nuff said<p>Homer
     
  3. bdemir

    bdemir LawnSite Senior Member
    Posts: 610

    Homer do you need part time help! I am great with grills. lol.
     
  4. HOMER

    HOMER LawnSite Gold Member
    Posts: 3,183

    COME ON DOWN, THE WATERS GREAT TOO.
     
  5. pogo

    pogo LawnSite Member
    Posts: 37

    Cookouts are the best. The workers seem to like this alot. I will pay for lunches and diners sometimes. Find out their interests and reward them with something they like besides money. One of my foremen likes to fish so I bought him a new pole. I also throw in surprise money on good weeks.<br>OUT<br>
     
  6. southside

    southside LawnSite Senior Member
    Posts: 790

    Put the employee on performance pay.% of <br>gross.In Australia we have fairly high<br>unemployment 8.5% so a big incentive is<br>not being fired :)
     
  7. JML

    JML LawnSite Senior Member
    Posts: 415

    If a crew really hauls ass one day, and i am in a good i'll add a couple bucks to their checks. I also give emloyees anywhere from 5 to 20% for getting new jobs. you would be suprised how many will try to get sod jobs and landscaping jobs on their own, its well worth it..
     
  8. fireball

    fireball LawnSite Member
    from ne Pa
    Posts: 172

    we have several simple ones first<p>Monthly safety meeting--put on by my insurance company I have to pay 1/2 the bill which could be breakfast,lunch or dinner. Really depends on the speaker that they provide. Everybody likes it except the haz mat gets real boring 4 times a year.<p>Free lunch once a week--each crew has one guy talk about the label and Msds. The person doing the talk gets two hours time for prep time. <p>Incentive Sales Plan--Referring employee gets 3% of the &quot;PROFIT&quot; of each job that the company gets. Payable at the completion of job or the yearly anniversery of multi-year contract. Make sure they understand the difference between profit and sales. It is extremely easy to buy unprofitable work.<p>Incentive plan--Main backbone of production. Whenever crew beats estimated time, they are rewarded with 50% of the savings to be shared equally, paid the following month after occurance. For example, lawn mowing at xyz corp. The job was costed at 14 man hrs per cuting. Labor rate for crew is 22.00 per hr. This week, the 3 man crew does the job in 12 man hrs. Net saving of 2 man hrs. 2 times 22 is 44.00 50%of savings is shared equally between 3 men. Each employee gets 7.33 the following month. Each task that the crew does has a time assigned to it and they know what the time they have to beat before they start the job. There are quality standards that they have to meet. A customer complaint results in them doing the complete job over and usually takes them about 3 days to catch up. We don't have complaints to often--once a year tops or whenever the grateful dead was playing in town. This incentive can add on a average of 60% of a guys wages. nobody goofs off, they know their jobs and move out. Biggest problem is when one member of the crew perceives that another person isn't putting out 183%, makes for testy lunches or behaviour modification in the back of trailer. <p>We are in the process of coming up with a profit sharing plan. 50%of the profit stays with the company, the other 50% goes into a pool that is payable one year after.(the reason for this is that the current year might be bad and you need the cash to get over the hump)Everyone shares in the pot according to job position and longevity. You have to be working for three years before you can participate(promotes employee staying with company). Trying to keep it simple and it keeps getting complicated, the latest issue has been if you suddenly have 4 new foreman(this dilutes their share of the pie to the point where the bottom rung guys get more. Also trying to make it pay out every payday is a accountant's nightmare
     
  9. GroundKprs

    GroundKprs LawnSite Bronze Member
    Posts: 1,969

    The problem with employees in our region is that it is seasonal, and like everyone else, it is hard work.<p>To compromise the seasonal aspect, and give incentive to come to work on the day that's going to be over 100, went to a bonus plan as follows. Numbers are fictitious.<p>Base pay will be 7.50 per hour. For every regular hour worked during the season, a bonus of 1.75/ hr will accrue. Overtime paid at time and a half, no bonus accrues for overtime. (For overtime, you get extra pay right away anyhow.) Allso no bonus fro sick pay, holiady or vacation pay. The bonus is payable in lump sum on Dec 15 paycheck, if you are still in employ of company at that time.<br>For any day of unexcused absence, or for 3 tardy days, the bonus rate drops by .05 for the whole season. (You don't just miss a day's pay, you're also losing a nickel an hour for whole season.)<br>Season is over by Dec. 15, so anyone you just needed for season gets up to a $2000 goodbye. If it is someone we want to be here next year, will offer 150% of bonus, to be paid weekly over 12 week slow time, for showing up for 16 hours a week. With our real numbers, this person gets same pay as 40 hr summer week, for only 16 hrs in shop or snow work. Hours over 16 in winter: 7.50 + 1.75 added to regular check.<br>The employee must remain with company to end of season (date specified in employment agreement) to get any bonus payment. If someone leaves in mid-October, because he knows season ends soon and another job came along, he gets nothing. Now you have several hundred extra dollars to hire a short term replacement at 2 to 3 times the regular pay in your area to help with finishing the season.<br>Every 10 weeks, 1 sick day is earned. Can accrue up to 30 sick days. After that must take pay on anniversary date for sick days in bank. Gotta take vacation, can't cash in on vacation pay.<p>Just be careful with any hourly cash bonus plan. Have accountant and attorney review it. I even submitted ours to Wage & Hour to make sure ex-employee can't come back on you. This has happened often in the industry regarding bonuses.<p>Anyone interested in employment agreement forms, relating to this type of plan, email me and indicate .doc or .txt preference. Also have a formula for calculating % of bonus depending on length of your lawn season, but not sure where it is in files. If anyone wants, let me know and I'll send when I come across it.<p>----------<br>Jim<br>North central Indiana<br>
     
  10. Eric ELM

    Eric ELM Husband, Father, Friend, Angel
    Posts: 4,831

    Jim, That is an excellent pay plan set up. I like the way it is designed for getting them to show up. I'll give you a A+ on this post. :)<p>----------<br>&lt;a href=&quot;http://www.townserver.com/elm/&quot;&gt;Eric@ELM&lt;/a&gt;<br>
     

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