Performance Based pay

Discussion in 'Employment' started by hortman30, Jan 12, 2010.

  1. CLS LLC

    CLS LLC LawnSite Senior Member
    Posts: 487

    I do not currently have any employees, but here is an idea. What if you assigned a point system to the dollar value you charge. Say the points are base one dividing the price per lawn by 10 to keep it simple.

    For example if you have a $40 lawn you dived the 40 by 10. And that lawn has a point value of 4. Now make that point value known to all employees. Now you can pay all your employees $10 an hour and then when they get raises just raise their point percentage. Example: Your crew leader starts at $10 per hour plus %100 dollar value of the points. So if his crew completed 2 $40 lawns in one hour he would make $18 further more the crew members would make $10 plus %25 the dollar value, so they would make $12 in the same hour.

    This both keeps them working quickly, but also efficiently, because if they have to return the following day they don't receive any more points.

    Just my thoughts.
     
  2. MarcSmith

    MarcSmith LawnSite Fanatic
    Posts: 7,157

    North tex-

    I did have good luck with day labor from temp agencies (labor ready) ect). you pay a higher wage, but they cover the other costs (wc, taxes, ect) Its a good place to start for someone who wants to "try out" an extra person. The growth from solo to crew is a huge step and its a hard one to make. What worked for me was kinda like the way I worked it for mowers. IE do all you can with your current model. IE fill up schedule the whole nine then buy a bigger mower and so on. well its the same with people. do all you can by yourself then add a person once you are filled up up again, then you need to add another person. then fill up again, and then add a new crew and split the labor and work and then continue to grow ( if thats you plan)
     
  3. NorthTXlawnguy

    NorthTXlawnguy LawnSite Member
    Posts: 83

    I couldn't agree more Marc! Especially with the mower upgrading! I never used temp agancies, nor thought about that, but it is a great idea as you aren't bogged down with figuring out all the tax/insurance $$ or paying someone else to do that for you.
    Lots of good stuff here. I am glad to be involved with this site.

     
  4. landscape5050

    landscape5050 LawnSite Member
    from Idaho
    Posts: 6

    interesting
     
  5. MarcSmith

    MarcSmith LawnSite Fanatic
    Posts: 7,157

    tex
    the temp agencies will "hire" an employee if you bring them someone that you want to work with. so you are not limited to the folks they have hanging around.
     
  6. maintenanceman

    maintenanceman LawnSite Member
    Posts: 34

    Here's an idea. pay a low hourly wage, but also pay a good "quality bonus" each week. Maybe $4-5 per hour bonus. To qualify for the bonus work must be completed on time, no complaints, and no damaged equipment. Or something similar. Of course if your help can't hit the "quality bonus" regularly they will leave on their own because of the low pay, or you will need to replace them with better people since you want them to collect the bonus.
     
  7. grassman177

    grassman177 LawnSite Fanatic
    Posts: 9,795

    that is a pretty good idea there, i like it and we do somthing like this over the whole year, but this is good
     
  8. JayD

    JayD LawnSite Silver Member
    Posts: 2,060

    Hey nobagger,

    Do you mind if I PM you, I have some questions if you don't mind helping me with on this subject.

    Thanks,
    Jay
     
  9. JayD

    JayD LawnSite Silver Member
    Posts: 2,060

    there is a good point if it really works and how long can you do this with a helper before they make you change him to a full time?
     
  10. eaglescout1993

    eaglescout1993 LawnSite Member
    Posts: 108

    i started fall of 2009 picking leaves up with a friend and my dads Chevy 1500 truck, pay was easy then. we just split profit 50/50 and switched off on who bought gas/oil etc. starting this spring i will mow about 10 yards by my self and if i have any extra I'm going pass them off to my friend. obviously the ones i do my self will be straight profit but those i pass off i will make 10 dollars on and my friend will get the rest. next fall i am going to get 3 employees to help with leaves and pay them 10-20 an hour. my policy is "if you work you get paid, work harder get paid more, don't work don't get paid" it may sound dumb but i haven't had any problems with those I've employed.
     

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