paying employees

Discussion in 'Business Operations' started by magicmike, Nov 14, 2011.

  1. magicmike

    magicmike LawnSite Senior Member
    Messages: 266

    Has/does anyone pay their employees a certain amount of money an hour and also give them a bonus based on how many houses they get done a day? If so has it worked out good or bad?
  2. Agape

    Agape LawnSite Bronze Member
    Messages: 1,644

    I think a bonus system would cause shortcuts to be taken, so your quality would take a dive as well as your profit margins.

    Also you will get a lot of statements to the effect that the best bonus/incentive is that the employees get to keep their jobs.
  3. C & T Landscaping

    C & T Landscaping LawnSite Senior Member
    Messages: 480

    I agree, they will stop working to make each yard look good and just try to get in as many yards as possible which means them rushing at the accounts and in between...and we all now what happens when people are in a rush and are driving.
  4. magicmike

    magicmike LawnSite Senior Member
    Messages: 266

    good point
  5. Dr.NewEarth

    Dr.NewEarth LawnSite Bronze Member
    Messages: 1,476

    Check you local laws regarding employment. You should be paying an Employee by the hour.
  6. magicmike

    magicmike LawnSite Senior Member
    Messages: 266

    I understand that i said pay them by the hour + a bonus for each house completed which i was thinking might stop guys from slacking but it would also hurt the quality of the lawn care service (like the previous people said) but thanks for your reply
  7. billpiper

    billpiper LawnSite Member
    Messages: 82

    A way to provide an incentive may be a bonus based upon frofitabilty - profit sharing. The reason we want them to get done quickly and do a good job is because it increases profits and gets us more customers. If you keep real books, you may be able to take your P&L and possibly pay some percentage of profits as a bonus on a quarterly basis. Paying weekly or monthly wouldn't be very feasible, I would think.

    Messages: 1,343

    We don't do speed performance based bonuses. But on any given week at random if someone has done a nice job on a particular project or mow route we will throw them a bone to say thank you.
    Posted via Mobile Device
  9. AI Inc

    AI Inc LawnSite Fanatic
    Messages: 27,061

    Better to give them bonuses for getting new customers in existing hoods.
  10. AintNoFun

    AintNoFun LawnSite Bronze Member
    Messages: 1,807

    so tie the bonus system to customer satisfaction.. they get complaints the bonus goes down..

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