Profit sharing...or whatever it's called. And other perks for the guys?

Ijustwantausername

LawnSite Silver Member
Location
Raleigh NC
In an effort to keep good folks around, and encourage them to bring on even more good folks, I'm considering sharing a percentage of the years end profit and doing a few other things. Something like this:

Share 5 or 10% of the net profit margin at the end of the year with each employee. Let's say we make 100K Net. 10% of that is 10,000, split 5 ways is an extra $2000 per man and so on. I can put an emphasis on the fact that the harder they work the more money they can make.

Perhaps make it mandatory that the employee is there for 1 year before they are eligible for this?

Punctuality award every quarter? Money awarded and recognition to those who always show up on time, all of the time.

One of my guys mentioned if I would ever consider an extra PTO day per year worked. I'm now considering this. I was mildly encouraging as he's only been here 3-4 months, I really hope that he is thinking about his long term stay here. :)

What do you do to keep folks motivated?

Forgot to mention that I also have a hiring bonus of $1500 going on now. But so does everyone else and there's still nothing but the sound of crickets.
 

Andrew H

LawnSite Gold Member
Bonuses, especially around Christmas, Some type of pension, health insurance, end of season dinner, Christmas party, Roth/401/ira of some sort, we usually get our guys yeti drink containers after being with us for a couple weeks.
 

Mark Stark

LawnSite Fanatic
Location
Rochester, NY
In an effort to keep good folks around, and encourage them to bring on even more good folks, I'm considering sharing a percentage of the years end profit and doing a few other things. Something like this:

Share 5 or 10% of the net profit margin at the end of the year with each employee. Let's say we make 100K Net. 10% of that is 10,000, split 5 ways is an extra $2000 per man and so on. I can put an emphasis on the fact that the harder they work the more money they can make.

Perhaps make it mandatory that the employee is there for 1 year before they are eligible for this?

Punctuality award every quarter? Money awarded and recognition to those who always show up on time, all of the time.

One of my guys mentioned if I would ever consider an extra PTO day per year worked. I'm now considering this. I was mildly encouraging as he's only been here 3-4 months, I really hope that he is thinking about his long term stay here. :)

What do you do to keep folks motivated?

Forgot to mention that I also have a hiring bonus of $1500 going on now. But so does everyone else and there's still nothing but the sound of crickets.
I like these ideas and I can get on board with this. It's one of those things I really have to think about this off season.

One of the things we do right now is a $300 monthly bonus for no time missed. You can have scheduled time off which doesn't count against your bonus but if you call in then you lose it. So we do a thing where you call in one day and you lose half the bonus If you call in two days you lose the full bonus. In addition you may face other disciplinary reactions if you frequently call in. Although with the way labor is I think most people know we're not firing anyone right now even if we wanted to.
 

prezek

LawnSite Senior Member
Location
Baltimore, MD
I’d be reluctant to open up my financials to my guys…who’s to say you don’t want to take a larger draw on that 100k profit in a couple years? Build a bigger shop? Buy new trucks? Are your guys going to look at you as if you are spending their bonus money?

I have a 401k in place with a 6% match. Only a couple taking advantage of it…week paid vacation after 1 year…5 paid holidays…if things have gone well, I usually bonus at our 3 summer holidays. Memorial Day, July 4, and Labor Day.

Always interested to hear other ideas to keep guys motivated.
 

Observador

LawnSite Senior Member
Location
Lawnsite1210
As much as possible, I'd lean more to buying them something they use and can attach to your company.

I made custom jackets every year for managers and supervisors. Nothing fancy, just a Levis jacket with our company logo. The guys loved them.

I'd also take them out to lunch or dinner every couple weeks. With 300+ employees I couldn't do that for all employees since I paid out of pocket. We did have monthly barbeques for everyone.

The problem with cash bonuses is that they come to be expected and just become part of the pay. Resentment can build up when they aren't recieved for whatever reason, including their own fault.

I don't envy todays employers. It is much tougher today.

If anything I'd buy gift cards for good restaurants and hand them out randomly throughout the year to different guys.

"Hey Joe, I really appreciate how hard you've been working. Here's a 300 dollar gift card to (fancy restaurant) take the family out to dinner on me".

Better yet, "Hey Joe, I really appreciate how hard you've been working. I'm taking my family to (fancy restaurant) in a couple weeks. I'd like to invite you, your wife and kids to join us".
 

Mitty87

LawnSite Silver Member
I considered profit sharing but then I found a lot of problems with it. What if I am mid quoting jobs or someone is not pulling their weight. Those are a couple issues. I also don’t want to give them all our financials so they would just be told the number and have to believe it. It would also be really disappointing if we had an unprofitable year. Like when I bought a truck and excavator new last year.
 

notoriousSTV

LawnSite Member
Location
Atlanta, Ga
All in on motivating the workers. Money is usually a great motivator, but usually short term. They don't understand the numbers like you do.....
Other options, some have been mentioned....
Cash to someone that stepped up unexpected, out of the blue, given in front of everyone....could be gift cards.....

Shut the place down for a day, even a rain day and go buy them all work boots, or whatever....something nice....

On your way into work pick up biscuits for everyone, every Monday or something......buy a crew lunch on Fridays etc....
Big fan of trimg to keep the guys going. Especially as it's getting to summer dog days.

Let me know what ideas u have, I need some more myself
 

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