Is It A Good Idea To Give Bonuses To Employees?

robertpaint

Do you believe it's a good idea to give bonuses to employees who finish the project sooner than expected?

I currently have 7 employees and I am thinking of giving them bonuses should they finish projects faster than expected. The only problem I have is that it might make the work suffer.



What do you think?

mdshunk

I seem to vaguely remember that might have been one of the cornerstones of Paul Burn's method. His free e-book sheds some light on it:

http://www.100ktheeasyway.com/

Chris Johnson

Work will suffer, I usually spring for lunch on Friday's, guys like that. If we work on the weekend I pop for breakfast and lunch. If I see a guy working efficiently and making good time, I compliment him and they appreciate the fact I am noticing their accomplishments in the new trade to them. If a guy picks up materials for me on the way to job saving me time, I buy him a tank of fuel here and there (and we all know the price of fuel these days).

Some clients will ask if one of the crew can do additional work outside the scope of my contract and I will pass it on to the employee who a) I think deserves it b) is actually qualified for the job. The guys make bonus bucks that way.

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Chris

Flikka

I think it's a great idea. If you're worried about work suffering as mentioned then put aside money for your employee's each time you feel it's appropriate and give it to them once a year. Then they don't have to know why exactly they got it other than a years work well done.

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Mary

George Z

Yes, it is a good idea.

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PlainPainter

Before I handed out bonuses - I would also add up all the times employees didn't meet their mark - then at the end of the year, take all their bonus money and apply it towards the 'losses'. And whatever is left is what their yearly 'net' bonus should be.

orson

There are several business management books that discourage the practice of giving bonuses to individual employees based on performance, however, they highly recommend profit sharing across the board with all employees.

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concretemasonry

If you are giving individual cash bonuses for performance it should be related to the project and be very quick and timely to influence future performance and not be watered down by those that are not producing - A tight-rope to walk.

If you are giving annual bonuses, the effect will wear off rather quickly in the year and be diluted by those that were so-so. That is like giving a Christmas bonus or gift in addition to a Christmas dinner. People have egos and like to be rewarded for their INDIVIDUAL efforts.

Breakfasts and lunches, when timely and convenient, are great for creating a team effort and getting things out in the open. They also give everyone a good "warm and fuzzy" feeling of getting paid for not working for one hour.

My $0000.02 worth.

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Dick

Engineer, designer and consultant recently active domestically and internationally on construction and design in about 35 countries.

orson

Jeez, don't break the bank w/ that breakfast...u spring for the buffet?

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Rembrandt

I've got 13 employees. I handed out $15,000 in bonus in the past year. I don't give a bonus for getting a job done quickly but rather for a job done as perfectly as possible in reasonable time. All employees are informed not to divulge bonus amounts to other employees (you know how that goes). The lead men are the ones on the front line making sure that everything happens as it should so they would get the larger bonus. Make no mistake about what a huge effect a $50 or $100 bonus has on a crew member when a little praise for a job well done comes with it. I'll guarantee improved performance and quality that'll put more cash in your pocket. You have to share with the people that are helping you if you want to keep your top of the line crews.

Tin Cup

I'm with Dick on this one. Also, if they do a good job, their bonus is they get to come back to work tomorrow ! Guess that's why i work alone now.

Tin Cup

Brock

Yes unless they drop a sledgehammer through the neighbors Toyota and then lie about it like the other post I read over the weekend.

Tin Cup

i think it was a 2x4 they dropped, and the neighbor baited them with a spare tire bullseye !

Tin Cup

MIbeachbuilder

I agree!

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Norrrrrrrrrrrrm

I don't think the work will suffer if you do a thorough check-up after the job is complete and they know it will be done. That way they know the job has to be done right the first time. If they fail the first time, after the completion of the second time around would be the same time as doing regular paced.
That was confusing.

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donb1959

I have myself and two other guys. I give a Christmas bonus dependant upon profit on the year. I do pay well above industry standard wages. Also seven paid holidays, and a weeks paid vacation.

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Stevelsc8721

If we have a good week, on time and on budget, we go back to the yard and meet for adult beverages at the local beverage and food watering hole. My tab is at least $ 300. -$ 400. with cabs for employees who I don't want them to drive home

Dave Mac

Great idea imo, you could even do it quartly, Lyn fife actually teaches this very system, and you can purchase bboks on it if intrestead re post

Dave Mac

Imo it is best not to become to close of friends with employees, I try to keep it strickly buisness, I certainly would never go drinking with them.

I used to in my younger days, comes back to bite you in the ass.

plazaman

i agree, try not to become friends with them. They will start to slack. For the Past 20 Years, my father has been giving bonuses, christmas parties, and small gifts around christmas. Most of the time, the last workday before xmas we work half day, buy the guys lunch, take a xmas drink, and 100 bucks with a full days pay.

THis year, we done it differently. All except the $100. Its at the point where it became expected and a guy mentioned it a few months ago but i didnt pay no mind to the comment.

It should not be expected, it should be earned. They do work hard, and do deserve a bonus, but i will give it when the time is right. Also, for the past couple of months, business hasnt been all that great, very slow.

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