paying on production

Discussion in 'Business Operations' started by lbrtulsa, Sep 17, 2012.

  1. lbrtulsa

    lbrtulsa LawnSite Member
    from Tulsa
    Posts: 3

    So I'm wondering if paying on production is applicable to lawn care? Some say when you pay on production you get production without quality.... But I looks as if you could implement certain sad guards like you get your production pay if we have no return work... Give me you thoughts???
     
  2. grandview (2006)

    grandview (2006) LawnSite Gold Member
    Posts: 3,466

    So to abuse this all you need to say is I got a complaint call,no pay for you.
     
  3. lbrtulsa

    lbrtulsa LawnSite Member
    from Tulsa
    Posts: 3

    If thats the way I operated then your assumption would be correct. However your ASSUMPTION is incorrect. Thanks for your input but lack of advice.
     
  4. grandview (2006)

    grandview (2006) LawnSite Gold Member
    Posts: 3,466

    Please give more info. Are they getting a base pay and bonus if no complaints? Or are you basing their pay on production only and if they get call back then no pay. Either why my post is the same. Get a complaint ,no pay.
     
  5. Duekster

    Duekster LawnSite Fanatic
    from DFW, TX
    Posts: 7,961

    I am afraid there could be quality problems and less eye for detail when you pay piece meal. You can also get into some problems if crews think one route is better or worse than another. Also they get to where all they want to do it mow and not do other jobs.

    I think a complex bonus system is better.

    Include things like
    Production goals
    Complaints
    Compliments
    Equipment care
    Profit

    Should all be in the mix.
    Provide some info on how bonuses are given but not an exact formula. You do not want workers knowing exactly so they do not learn how to game the system.
     
  6. 32vld

    32vld LawnSite Gold Member
    Posts: 3,984



    Complex is never better. Complex is never even good. Complex means more more work/time to do something. Complex is only bad.

    No exact formula the employees are going to think that the boss is out to "game" them out of there money.

    A business owner has to do what works out best easiest for him.
    Hourly, salary, piece work, base guarantee + commission, commission.

    I have a friend come out one day a week he gets $10 a lawn. These lawns are under 1/3 acre or less. Sometimes I'm not loaded up before he gets there he helps. End of day he helps to unload and clean up. We don't rush to get done faster. We don't cut corners. Travel time is not a factor.

    Now if I was to get larger lawns I would have to pay more him more on those. Pay would have to reflect the size of the lawn to be fair.
    $10 on a $30-$35 is fair. $10 would not be fair on an $72 lawn.


     
  7. Duekster

    Duekster LawnSite Fanatic
    from DFW, TX
    Posts: 7,961

    you sound like you pau piecemeal... I do not. I pay more than the median wages in my area. Guys are with more close to 7 years. Not gaming anyone.
     
  8. 32vld

    32vld LawnSite Gold Member
    Posts: 3,984


    Here you are advocating playing games.





    Now you say you don't.



    Years a go I worked as a mechanic. Got a weekly guarantee min. salary. When I did not bill out much labor I got my min, and when my 45% of the billable labor hours was greater then the min. I got my 45%. So if I produced $1,000 I earned $450. Straight forward to figure out.

    I stand by keeping all systems simple as possible.
    Being straight.

    Piece meal works for me because I do not have 40 hrs a week of work.
    Paying based on the job works for me because it reflects the cost of doing that job.

    Paying say per hr the labor costs do not reflect the cost of any actual job.
    Same for weekly salary.

    Example:
    Monday 8hr day, 1hr drive time, 7hr production
    Tuesday 8hr D, 2hr DT, 6hr P
    Wednesday 8hr D .75hr DT, 7.25hr P
    Etc....
    Etc....

    As one can see prodution time varies from day to day. So salary costs can only be an average of actual production costs.

    Again business size, number of accounts and employees, and anything else will make one system best for them.

     
  9. knox gsl

    knox gsl LawnSite Platinum Member
    Posts: 4,918

    This is how I would do a larger mow only operation. Base of min wage. Then pay each guy so much per stop based on the gross of that one property. If any call backs that needs to be on them but the min wage clock is running. You will need to do some spot checks to be sure they are on their A game but you could use a system like this and it would work for most operations. The reason I said min wage on the clock is because they should be getting that by law. They can choose to make more if they want to and in the mean time they could do more with less equipment while keeping the quality up. You also wouldn't have to worry to much about overtime in this setup as per stop rate should be high enough that they would make more on it than on min wage plus overtime. Basicly they are guaranteed any hours on min wage but could make more on a per stop basis if they work efficently.
     
  10. Duekster

    Duekster LawnSite Fanatic
    from DFW, TX
    Posts: 7,961

    You seem to have mechanic work mixed up with lawn care. Two different creatures. Mechanics / body shops have well documented production rates for which items are to be billed.

    So how do you calculate the piecemeal rate on different jobs. How do you keep some crews from thinking someone got the sweet easy job. How do you keep them motivated to doing jobs that do not pay as well but have to be done?
     

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