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How to fix a spoiled company culture?

Discussion in 'Business Operations' started by GatorGardener, Jun 27, 2014.

  1. whiffyspark

    whiffyspark LawnSite Fanatic
    Messages: 6,506

    Do you're employees work 50 hours every week? Or 30,35 etc plus 10 or wether they're over or not?
    Posted via Mobile Device
  2. TPendagast

    TPendagast LawnSite Fanatic
    Messages: 10,710

    was he spanish?

    are you sure he couldn't read or write, or just couldn't read or write ENGLISH?

    just a perspective thing, if guys are ted to getting 50 hours a week (which includes 10 OT hrs.
    and you say no more OT.
    YES, you are cutting their weekly pay, because it was money they were getting before.

    INSTEAD of just cutting their pay.

    Make it bonus pay instead.

    Lets say George is 20/hr . He works 50 hrs every week. $800 reg $300 OT.

    law says you have to pay OT, so don't schedule OT anymore.

    But George is "EXPECTING" $1100 gross a week.


    You work George 37.5 hours every week. That's $750.00 (40 hours minus half hour mandatory lunch)
    That gives you a POSSIBLE $350.00 bonus to AWARD George EVERY WEEK.
    IF, he performs, IF he gets everything done, IF he doesn't break anything, loose anything or have to redo anything.
    THEN he gets his money.
    Not simply for logging hours.

    So…if George doesn't get $1100 every week, it's for something HE didn't do, NOT for something you DID do.

    Additionally, you are giving him goodies because he's only working a 40 hour week for 50 hours worth of pay….

    and you might think, OH thats backwards! NOW I'm paying him $29.33 an hour!

    Well yes and no.

    1) a well organized motivated employee can do more in 37.5 hours than a guy that is taking advantage of the system can in 50 hours.

    2) how often do you think this guy WILL earn his full bonus every week.

    3) it s performance based plan rather than an accrual plan

    4) if you think my pay plan is worse, leave the guy alone he must be doing fine!
  3. GatorGardener

    GatorGardener LawnSite Member
    Messages: 23

    We have to pay our guys with clean driver's license $1 more an hour premium because we have trouble finding guys that have a license that is cleared for insurance that are also willing to work outside getting dirty all day.

    We bill our guys out at $30/hr - so when they make overtime and some of them make $30 or more an hour during OT we lose money every hour of OT they work due to overhead.

    Lastly - don't comment anything if you are going to come on here and start telling me about how clean or dirty my hands are. You don't know me and I don't know you so don't come at me trying to start an unprovoked argument.

    Thanks to the rest of you guys with the tips - I clearly have a lot to learn about management so that is why I'm here looking for advice.
    Posted via Mobile Device
  4. whiffyspark

    whiffyspark LawnSite Fanatic
    Messages: 6,506

    That's your problem right there.

    $30 a man hour

    If you seriously have a CPA background you need to figure your numbers out. Because that's no where close to where you need to

    And you might want to listen to T. He does consulting. A lot of people that comment have no experience with what they are talking about
    Posted via Mobile Device
    Last edited: Jun 28, 2014
  5. Efficiency

    Efficiency LawnSite Bronze Member
    from zone 6
    Messages: 1,808

    Dunno whiffy. Down south the big maintenance companies are as low as 27 a man hour...
    Posted via Mobile Device
  6. whiffyspark

    whiffyspark LawnSite Fanatic
    Messages: 6,506

    Kind of hard to make a profit when you charge less than what you pay people..
    Posted via Mobile Device
  7. TTS

    TTS LawnSite Senior Member
    Messages: 615

    Wasn't that the whole point of the thread?
    Posted via Mobile Device
  8. 32vld

    32vld LawnSite Gold Member
    Messages: 3,983

    I have to apologize. It appears I have spoken to soon.

    It now has been brought to my attention that his math skills are just as good as his people skills. :rolleyes:
  9. GatorGardener

    GatorGardener LawnSite Member
    Messages: 23

    Does it make you guys feel better about yourselves to bash others on this forum? I'm not sure what point you're trying to make. I have zero interest in getting into a fight and I'm only seeking positive advice and differing opinions.

    The bottom line is that I inherited a $30 an hour billing rate and high direct labor expenses and I'm trying to solve the problem.
    Posted via Mobile Device
  10. hackitdown

    hackitdown LawnSite Silver Member
    Messages: 2,632

    I'm not so sure that you have a spoiled company culture. It sounds more like an unsustainable business model. It is not the fault of the employees. It is the fault of the previous management to allow things to slide a little too far away from profitability.

    I would think that you could explain this to the employees without being a dick. Explain that you don't want to do it, but you need to cut expenses. Ask them politely to stay, and that they will be sorely missed if they quit, but the reality of the situation requires changes.

    It is important to accept and acknowledge that it is not their fault. They are not spoiled. They are doing exactly what I would do...making the most $$ I can at my job. Yes, they will be angry that their pay is cut, be prepared to deal with the negativity. That is the tough situation you need to address together.

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