Production Bonuses?

Discussion in 'Lawn Care Business Management' started by Turfdoctor, Dec 28, 2013.

  1. Turfdoctor

    Turfdoctor LawnSite Member
    Messages: 51

    I am trying to come up with a way to offer production bonuses for my Spray techs, without causing reduction in quality or increase in service calls. I am looking for ideas. The hourly pay disparity seems to cause more strife than incentive to produce more. Any ideas? I have been in business for 16 years, but can't ever seem to come up with ideal compensation plans. Salaries backfired!
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    BRIARPATCH LawnSite Member
    Messages: 91

    I give "surprise" bonuses. Maybe cash--maybe gift cards etc. Guys never know when or if they get them. If you always pay on a quota basis, I too worry about the quality my guys supply just to get the extra cash. Fair pay--treat them right--bonus when you think it's needed. My guys seem to really like the surprise but don't expect it.
  3. RussellB

    RussellB LawnSite Fanatic
    Messages: 8,747

    This is what I do.
  4. richardcoffman

    richardcoffman LawnSite Member
    Male, from murray, utah
    Messages: 10

    ive been trying to come up with ideas as well, im the operations manager and the owner likes the get paid depending on your production, but i dont care for it as the guys will just work fast to get the like to make them hourly but make it worth their while as well and incentives...i like this idea above but i dont want it to be the only thing that works for there any ideas anyone else may have???
  5. CNYScapes

    CNYScapes LawnSite Senior Member
    Messages: 916

    leave their hourly pay where it is and start offering bonus each week without call backs on their route. It will be in the back of their head that they want that bonus. You could even start out with $25/week, thats like .60 an hr.
  6. CNYScapes

    CNYScapes LawnSite Senior Member
    Messages: 916

    So I was reading this article or post, I dont remember where, about offering GREAT customer service. Like going out of your way to do something extra for a customer. (help carry groceries in, alert them to other issues in their landscape that need attention)

    My idea is to require each employee to write down and submit one thing they did each week that would qualify as going the extra mile/doing something extra for a homeowner or their property. With higher emphasis when the customer actually sees/witnesses you doing the act. I would then pick the best one out of the group and that employee would get $25 cash.

    So they have to submit it in writing each week and i will choose the best each week.

    Sound Good or no?
  7. Green Sweep

    Green Sweep LawnSite Senior Member
    Male, from Pittsburgh, PA
    Messages: 322

    We have a production bonus program in place that has worked pretty well. We have 5 routes (tech's). I divided up each route evenly. The tech's have a weekly billing goal of $5000 ($1000 per day). They get their weekly salary if they hit their goal. THEIR HOURS MEAN NOTHING! They get 10% of everything billed over the $5000. Sometimes, the guys are able to hit their goal by the end of the day Thursday. Then then have two options. Come in Friday and continue to bill for a big bonus. Or, take Friday off and get the full weeks pay. Usually, the techs are able to just hit their goal sometime early on Friday and head home.
    They are also responsible for all service calls or estimates that happen in their routes. The service calls and estimates must be done within two business days (and is heavily monitored).
    We constantly run reports for service calls to make sure these guys are doing their jobs. I did have a guy last season who was not spraying Nutsedge. Ironically my home and neighborhood were in his route! I made a list of all of the customers that had Nutsedge in my neighborhood and printed 30 service calls for him the next day. Hopefully that was a deterrent and he wont make that mistake again. Aside from that incident last year, it has worked well.
  8. jc1

    jc1 LawnSite Silver Member
    Messages: 2,160

    What kind of pay do they make when hitting their production level?
    What do they get paid if they don't?
    Do they get paid salary year round if they hit their level during the season?
  9. Green Sweep

    Green Sweep LawnSite Senior Member
    Male, from Pittsburgh, PA
    Messages: 322

    They make between $500 & $600 per week as a weekly salary - varies of course. So, if they bill $1000 over their goal, that is an extra $100 (untaxed).
    They always hit their goal unless they are cleaning up a route or something. If that is the case, then they are paid hourly.
    No yearly salary - they are laid off for the winter.
  10. foreplease

    foreplease LawnSite Silver Member
    Messages: 2,062

    First, it was great of you to share that much in depth information. Do I understand it right: they make less as a percentage after hitting their goal if they continue to work (10%) than they do throughout the week (12% = 600/5000)?

    It seems like you have a system pretty well thought out. Wondering what kind of turnover you have?

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