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Production incentive ideas. Discuss mine and share yours.

Discussion in 'Business Operations' started by JDUtah, Jan 11, 2011.

  1. JDUtah

    JDUtah LawnSite Silver Member
    from UT
    Messages: 2,636

    Hey guys,

    Quick background goes like this. Built business (full service) with brother in law. Broke off and started over, just fert. This year I am adding mowing. Workload should cause me to hire help again. I want the help for mowing and will do the fert.

    I am putting an attractive production incentive program together and was wondering what you guys have done and what suggestions you have for mine.

    Mine is pretty simple.

    Each property has an estimated completion time. Each day has an estimated drive time and equipment set-up/lock up time. Add those together and you get the estimated time it should take your guys to do the work that day.

    If they complete the work faster than you estimated, you pay them for the estimated time. IE, you assume the work will take 16.25 man hours to complete (8.125 hrs each for a 2 man crew). They complete it in 14.75 hours (7.35 hours each). Thus each worker did 8.125 hours of work in 7.35 hours time so you pay them for the 8.125 hours.

    To keep the quality up you reserve the right to remove the over-production incentive if a client has a valid complaint, or if you check on their work and it is unsatisfactory. In that case, for that day, they get paid only for the time they worked, and not for any overproduction.

    To keep overproduction attractive you will make the estimated times relatively beatable. That way they feel like they can make some good money and stay motivated.

    This is based off an incentive program I came across in a certain warehouse. It seemed to work very well.

    What do you think? What questions do you have? What suggestions do you have? And most importantly, what other ideas do you have to promote production?
  2. familylawncare

    familylawncare LawnSite Member
    Messages: 177

    I think this could take up most of your time to calculate daily. Does anyone have a program in place that perhaps rewards work with no incidences, or damages but deducts "points" for damage to customer or company property? We have WAY too much window breakage,cars damaged by rocks being hit by weedeaters,etc., and on and on. Welcome your ideas.
  3. JDUtah

    JDUtah LawnSite Silver Member
    from UT
    Messages: 2,636

    I already have a prototype set up to calculate it automatically. It is pretty slick so far. I build my rout in excel. One tab for each day of the week. On a given day I goto the tab and print it out. Each property is listed in order on that sheet with a spot to record start and stop times on each property (and start and stop for the day). Thus they have their days work printed right in front of them.

    At the end of the day I simply enter the start and stop information into the spreadsheet. It automatically calculates how much to pay with incentive, and how much to pay if they loose the incentive (like if they break a window, get a valid customer complaint, etc).

    Note: this helps solve your problem because no-one wants to get paid less.

    This also allows me to have a hard copy of exactly when the crew was at the property (for customer payment collection/legal purposes). And a hard copy telling me how many hours to pay my employee's for.

    This discussion is also going in the Mowing Forum with some different concerns discussed so far.

    Thanks for the input. Keep it coming!

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