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Employee Incentive $$$$$$$$

Discussion in 'Business Operations' started by PaulMoody, Feb 18, 2008.

  1. PaulMoody

    PaulMoody LawnSite Member
    Messages: 25

    It seems like season after season I get employees that don't stick the year out. They will go 3-5 months and take off. I'm considering offering an incentive program in an attempt to motivate them to stay on. My plan will offer them one dollar extra per hour that will accumulate in a separate account that they can have as a bonus at the end of the season if they stick it out. For example an employee working 40 hrs a week will accrue $40 per week in his account. Over 36 weeks this will end up being $1440. The accumulated amount will be listed on their pay stub so they can see how much money they are laying away and what kind of a financial loss it would be to simply walk away in the middle of the season.
    So what do you think? Good or bad idea? Too much money? Input welcomed.

  2. DaveinSWFL

    DaveinSWFL LawnSite Member
    Messages: 178

    I have a situsation where my only fulltime employee is always late or sick. He works like a mad man when he is there but when he's not he leaves me in a pinch. I started in the beginning of the month with an incentive program for him. If he is not late or no call off's he is given a bonus of $200 for the month, each month. So far it has worked well. I like your idea. Let me know how it works. It's a shame we have to pay it out, but unfortunately if is hard to find good help.
  3. greenbaylawns

    greenbaylawns LawnSite Senior Member
    Messages: 563

    What are you doing for them for the last 16 weeks? How about holding money out through out the year so they have some during the off season? I've wondered the same. I think your program may be a good one let us know if it works.
  4. rmmllc

    rmmllc LawnSite Member
    Messages: 222

    I am taking a similar, but different approach this year. I have a theory that pay is only part of the equation. Job satisfaction is part, too. I am encouraging employees to share ideas on how to improve the business and also giving them a percentage of the monthly profits. I have yet to work out all the details, but it will probably be a certain percentage above a threshold. Such as: 4% for crew leader and 2% for workers under him of profit over $1K. So if the crew cut $8000 worth of lawns and expenses were $3000, profit would be $5000. Say the threshold is $2000. So they would get 4% an 2% of $3000. so an extra $120 and $60 respectively.
    My hopes are this encourages thought about improving service (quality and quantity) and lets them feel a part of the company. We'll see how it goes.
  5. rmmllc

    rmmllc LawnSite Member
    Messages: 222

    oops- in my scenario I said $2000 was the threshold, but earlier I said $1K- sorry about the confusion

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