Raises, How Often Do You Give Them

saucedo80

Helo guys, Just curious about raises. How do you guys handle it, do you give them out after a certain amount of time the employee has been working or do you carefully observe the employee for improvement on the job. Do you guys raise pay a few cents an hour or do you just give them a buck or two more an hour. Just curious on how everybody does it.

mdshunk

I always thought those nickel-dime-quarter raises were an insult, and I vowed never to do that.

I like to start guys out on the low side of average, just to see what they got. If they've got the stuff, they get a generous raise in about 30 days (couple 3-4-5 bucks). After that, I wait until I can give a buck or buck fifty an hour raise. That's usually about yearly.

Lately, I've had to hire in pretty high, so they're not getting that 30 day raise because they basically got it (or more) when they were hired.

Consequently, I don't hesitate to give out a performance bonus for a particular project that went well. The downside is that the bonus tax only nets the employee about 60% of the actual bonus given, but it is "free money" to them, after all.

Nathan

Moved to business since it's not a paint specific question.

__________________
Nathan

"He is no fool who gives what he cannot keep to gain that which he cannot lose." - Jim Elliot

Teetorbilt

Give a moderate one, if the person is working out, in a month or six weeks. That relaxes them and then you can discover who you really hired, everybody tries to impress and get that first raise in the beginning. After 3-4 mos. you should have a pretty good handle on them, then pay them what they're worth if you want to keep them.

I have a guy that I hired when he was 24, 2 kids and a bitchy wife. His ATTITUDE just sparkled and I put him in the cabinet shop at $10. Productivity went up 20% and he got a $5 raise. Did I mention that the guy is also sharp as a tack? He picked up on the processes so quickly that 6 mos. later I gave him another $5 raise which brought him up to nearly what I was paying older, more experienced cabinet makers. Today he runs the shop and is paid accordingly.

__________________
You can't solve you're problems with the same level of thinking that created the problems.

Albert Einstein

nadonailer

What's a raise?







Just kidding!

__________________
"History does not long entrust the care of freedom to the weak or the timid”.
Dwight D. Eisenhower

painterjim

I start my guys off at well below industry wage. If they show the basic requirements (prompt, steady work ethic, knowledge of materials/applications, hygiene, follow directions, etc) after 2 weeks they receive a minimal raise ($1.00).

If after 4 weeks they are still performing they receive another $1.00

After 8 weeks if they are still performing $3.00 raise. That's all for the remainder of the year. After 12 months I bring them up to just above industry wage.

Guys that have been with me for 2 or more years are well above industry wage, as well as production bonuses. This system has worked for me for years. Up to the 4Th week my turnover/attrition is about 90%. After 90 days my turnover is less than 2%.

mdshunk

Painterjim.... does starting guys off so far below standard wage ever make you feel like you might be missing a few "gems" because they can't (for whatever reason) tolerate working for such a low wage for an unknown period of time? Not saying... just asking. That is my concern, which is why I've recently changed that up.

Teetorbilt

Followup on md. You can pass over a lot of good people and go through a lot of screwups by not making the pay/promotions interesting enough.

I'm sure that the scuttlebut through my company is 'prove yourself and you will be paid accordingly'.

__________________
You can't solve you're problems with the same level of thinking that created the problems.

Albert Einstein

painterjim

I just typed a 20 minute reply to this. I submitted with a smiley, it told me I wasn't allowed to do that, when I back spaced to erase the smiley, and post my reply, my reply was gone. ARRRRGHHHHHHHHHHHHHHHHH.

I will attempt to post another tomorrow.My one typing finger is frazzled right now.

painterjim

Teetor,
My reply went in depth about the above. But, as posted earlier, a smiley hijacked my reply.

Teetorbilt

Highjacked by a smilie? Even I haven't been able to accomplish that one!

__________________
You can't solve you're problems with the same level of thinking that created the problems.

Albert Einstein

dougchips

[QUOTE=nadonailer;134309]What's a raise?




The people from Canada that chat here use some foreign terms. I am also not aware of it's meaning.

I gave my office manager a 50% raise after 3 months, she is still underpaid. I only received a 10% raise this year.

painterjim

md,
Maybe, yes. It's not an unknown period of time. I discuss my pay scale when they are interviewed. I go through a lengthy interview/new hire process. I explain how the pay scale works, and I also encourage them to speak with the guys that have been with the company for over 12 months...before they hire on.

For three years I started employees off at nearly top of industry wage, I would still have them that came in late, left early at times, and who's work was sub par, I would then feel foolish when after 3 weeks I either had to fire them, or reduce their pay.

My retention rate hasn't changed with either system.I feel that any adult with a family to raise ought to be able to pay his/her bills during this 8 week assessment period, keeping in mind that after 1 year they will be making well above IS wage...in fact making more than they can with any other contractor in town then maybe their not right for the company. If my potential new hires don't have the foresight to see what this company is about, and what I want for my employees then it's just a waste of both our time.

I have found that with the currant system I weed out the trash and the ones that stay with me and can weather the 8 week training period
generally turn out to be OK....the ones that stay with me past 12 months are excellent employees with far sighted goals, and I treat them like the gems they are. <---Dead smiley walkin

realpurty2

We tell our guys upon hire that they control their raise schedule. How fast they move up the payscale depends on how fast they meet the criteria. We give them job descriptions of what we expect of them and those who strive to achieve it are rewarded, sometimes even weekly until they max out on merit raises. After that it becomes yearly with a bonus for bdays and hire anniversaries.

__________________
Woman in a Man's World.

Scott Young

i quit paying by the hour. i don't know if it is exactly legal, but my guys have no complaints. i pay by the job. i got the idea from when i roofed. they paid by the square. the faster the man worked the more he made. i transfered that over to other areas. i pay a percentage of the net. i don't mind my guys know how much i make. when the guys saw how much it actually costs to run a small business they all comment how wrong it is to pay all that overhead.

i will say this, i have faired better cause the guys see how being efficient pays more in the long run. i increased thier speed and it revolutionized thier work effort. they are now working harder cause it increases thier hourly rate.

their are definite pros for this, but there are also some cons for it also.

painterjim

Called piecework, I've tried that as well, didn't work for me.

Scott Young

though i don't use typical piece work such as xx.xx for this and xx.xx for that. it is a whole job. on a remodel, you get your money at the end of the job just like i do. if there is a labor draw, then it is distibuted proportunately.