Paying employees commision?

Discussion in 'Business Operations' started by wendicp, Jan 2, 2008.

  1. wendicp

    wendicp LawnSite Member
    Posts: 12

    This year we are considering paying our employees by commision instead of per hour. We are going to have a salesman who gets the jobs-he will be paid a certain commision for the jobs he gets. Plus he will be required to check on the jobs he has gotten to make sure the customers are happy. If the job isn't getting done he won't get his commision! The lead man will be paid a higher commision than the laborers below him. He will be responsible for his crew and making sure the job is done correctly. We are thinking that this will make the guys do the jobs we know they can get done in a day instead of dragging their rears and still getting paid by the hour and not completing the jobs they could have. If they don't complete the jobs they lose money that day. Everyone does-including the salesman. Our hope is that this will encourage everyone to stay on each others butts to get the job done. If they try to rush through the job and do a crappy job just to get the job done there will be consequences. Does anyone else pay this way? Can it work?
     
  2. jimmyburg

    jimmyburg LawnSite Senior Member
    Posts: 701

    you will get rid the the dead wait, or butt draggers with this new pay scale. your workers will either quit or get in line.
     
  3. tthomass

    tthomass LawnSite Gold Member
    from N. VA
    Posts: 3,497

    how would you handle unforeseen delays......be it the job was bid incorrectly or weather etc.
    ?
     
  4. PaperCutter

    PaperCutter LawnSite Bronze Member
    Posts: 1,954

    Unless your sales rep has actual authority over the crews, not just nagging them, you'll burn him out in no time. Been there, done that. Sales and production work better as two different entities.
     

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