Bonus Type Pay Structure?

Aggie67

We pay our guys a flat wage, and for the most part we pay better than the average firm (and our trade is a rarity - hard to find good men, so we like training beginners). We've been toying with the idea of doing some sort of bonus to provide incentive to bring jobs in quicker. Does anyone else offer incentives like that? I've heard some trades offer incentives that drive manhours down on jobs, like for every crew-day a crew saves, the crew splits part of what that day saved in dollars for the company. So an owner would tell a foreman, look, this job was estimated at 600 hours, here's the drawing and the estimate, down to the nut and bolt, and we'll give you X dollars for every day you save off that 600 hour count. Anyone else do that, or pay by the linear foot, etc? I've run into framing crews (usually from Guatemala or points south) that say they get paid by the linear foot.

We usually can a guy outright if he's slow. But I want to find more winners.

Remodel Bud

Bottom Line is incentives are usually good if 1) written and explained clearly 2) managed properly to avoid more service problems from "quick" work 3) Not unreasonable.

Bonuses are a good way to motivate if structured well & "sold", so to speak to the recipient in a positive manor.

Snow Man

Good idea to me if you are in that situation . But the idea of running illegal aliens puts a sour taste in my mouth.
Our anscestors came here the proper way and if you have to stoop down to this process , I consider it Un-American and there are plenty of hard working American mechanics looking for work .

It just may be your getting this work cause of your labor rate.
I cant see how your producing quality work with any sort of a PROFIT with folks who cannot even speak English.

All my men are from this country , thats where your getting jambedf up .

Thats just my opinion ,

__________________
DECOSnowRemoval&IceControl
Serving Delaware County & Philadelphia Pa
610 457-9721

rbsremodeling

Step away from the bottle and re read the post

__________________

Snow Man

stop rubbing sally and breathe

__________________
DECOSnowRemoval&IceControl
Serving Delaware County & Philadelphia Pa
610 457-9721

Remodel Bud

HAAAAAAAAA!!!!!

Mike Finley

It's always a great idea. You only need a couple of things to make it work, one being a quantifiable work load as the most important.

If you can quantify the job, by units it's simple. Most remodeling doesn't work this way. It's hard to break a remodel into units.

If you are laying tile it's easy to get to simple square footages, you have units now, you simply apply some calculations and you have per days, then a new job is measured, divided into units and you're off.

If 9 units a day is average it's easy to measure and now that when joe did 8 units he is under delivering and when hank did 10 he is over delivering and compensate them accordingly.

Carport King

We pay all installers by the job. They recieve a $25.00 bonus for a perfect job and collect our check.

The owner sends out a thank you letter from us with a rate our company questions and then if they write along a testomonial letter then the installer will recieve another $25.00

That is for the retail side of things. The installer is held accountable for his job for 30 days. If we have a service within 30 days he fixes on his time after that we send out our service department.

MEDIAINSTALLS

What we do is provide a tier pay system (check local labor laws if this is legal in your state). Whether you pay a crew by the job, footage, hourly, etc they can be into a tier system. It is alot of work on the back end but the end results will make your business a success.

Start everyone on the mid level of pay. After 4 weeks and the grading system adjust their pay to their performance. We do it on a point system up to 50. We call every customer for a survey. Here are some of the questions we grade our guys on.

1. Was the installer on time?
2. Was he in uniform w/ id badge?
3. Did he clean up after himself? (our installers are required to have a small shop vac on their truck)
4. Any service calls within 30?

Once the 5th week becomes a factor the 1st week drops off and a new average is taken and their new pay tier is given.

This does great things for both your installer and your business. One when you call for that follow up call it shows you care. 90% of the time we get "no one ever asked me that but thank you." It creates competition among your guys to be the best.

If a guy continues to go on the low tier he can be written up, cut his work, opportunity for up training, or just not the guy for you.

Hopefully this helps