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Variable Pay System for Mowing Foreman

Discussion in 'Business Operations' started by MowJo, Aug 16, 2006.

  1. MowJo

    MowJo LawnSite Member
    from KY
    Messages: 70

    I've searched and read countless threads on this topic and here's what I've devoleped... could this actually work?

    Each mowing foreman will be paid weekly through a combination of a “base salary” and “variable pay” component. Each component will make up one half of the employee’s current 40 hour gross pay. The objective of this system is to offer a financial incentive for foreman to increase production of their crews. The desired effect is higher production for the company and more dollars per hour for the foreman… the proverbial WIN / WIN.

    Base Salary
    The base salary represents a guarantee of income and would cover stuff like support duties such as equipment maintenance, marketing with doorhangers, meetings, paperwork, fueling or training sessions. The base salary will be paid equal to one half of an employee’s gross pay for a 40 hour week. In this case say, $220.00 per week.

    Variable Pay
    The variable pay is a set percent of each job completed with no callbacks or failed inspections. In this case the percent would equal $220.00 per week (one half employee’s current weekly gross) based on the current workload. As long as the work is completed successfully the foreman is guaranteed his variable pay, no matter how long it takes him to complete… whether its 20 hours or 50 it’s up to him. Therefore the faster the work is completed the higher his hourly wage actually becomes. In the event of a callback or failed inspection the variable pay for that job is forfeited (quality control mechanism). Unlike a traditional “fixed salary” the variable pay system also rewards foreman when new customers are acquired by raising the variable pay amount in relation to the increased workload.

    Any suggestions? Should he numbers be tweaked? Would a base salary of say 25% and a variable pay of 75% be more effective.
  2. mslawn

    mslawn LawnSite Senior Member
    from LA
    Messages: 483

    Pay them hourly and then give them a production bonus at the end of each month if you want. Why make it more complex than it has to be? What about overtime? You can break laws doing stuff like this and not even know it when it comes to overtime. I have been audited by the DOL and I pay hourly so it was nothing to it. I would hate to have to explain this system to them and then sweat bullets as they critique it.
  3. dvmcmrhp52

    dvmcmrhp52 LawnSite Platinum Member
    from Pa.
    Messages: 4,205

    So you have a foreman making $11.00/hr. and you want him to work piece rate for half of it?
    Good luck with that approach because there is no "incentive" here.
  4. AintNoFun

    AintNoFun LawnSite Bronze Member
    Messages: 1,807

    the best thing i've come up with is give the foreman a decent salary and pay the laborers hourly. this way the foreman wants to get home and not waste much time hence cutting down on the o.t. for laborers...
  5. rodfather

    rodfather LawnSite Fanatic
    Messages: 9,501

    You have to be kidding...my foremen make twice the total of that combined and that is guaranteed.
  6. rodfather

    rodfather LawnSite Fanatic
    Messages: 9,501

    Wish I had seen your post sooner Dave.
  7. Brianslawn

    Brianslawn LawnSite Silver Member
    Messages: 2,004

    wont find anyone interested. white guys want more money for less work. not vice versa.
  8. rodfather

    rodfather LawnSite Fanatic
    Messages: 9,501

    my white foremen guys Brian make 22.50 an hour, get 1/2 medical reinbursement and 5 floating personal days
  9. CutInEdge Lawn Care

    CutInEdge Lawn Care LawnSite Senior Member
    Messages: 677

    Good golly molly!! Guess you could'nt afford me rod. I did one job today. It took one hour and got a 200 bucks. Guess that means I make a $200/hr :hammerhead: J/K. :laugh:
  10. fastpitcher

    fastpitcher LawnSite Member
    from PA
    Messages: 91

    How will you handle the weeks in mid summer (like now) when lawns do not need to be cut. I do not think my forman will go out and work all day cut 1/2 the lawns because they dont need it. He will cut every lawn and I will get complaints for them being cut. And I will not get paid for them!

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