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2011 Changes.

 
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Old 01-06-2011, 05:10 PM   #1
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2011 Changes.


Well, we know that I have some questions and problems. I posted about them as I have a lot to learn and got some great ideas.

Monday came with a company meeting. I told everyone that the guy I just brought on a month ago is the Foreman. You listen to him when I am not here. If he bitches you out, it is because I bitched him out. I trust him the most and he is the most efficient worker.

I also changed the way pay works and so far everyone loves it. Reason why? They (think) are making more money. They are moving quicker and more motivated to get it done. Now I know my direct labor costs before jobs start. I also created an incentive program that they are excited about.

Two weeks ago a laborer kept asking if I was going to get another laborer. I told him I don't need two laborers so if I get one, he is going to be taking your job. He didn't believe me and still wanted one. Well, as of yesterday, he took his job and that shook things up because all the guys thought I would not get rid of that laborer.

Bottom line is that I shook some things up, productivity increased, morale seems to be high and the guys believe they have a future of eventually moving up within the company if they continue to do good work
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Old 01-06-2011, 05:14 PM   #2
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Re: 2011 Changes.


Way to take action! Sometimes we get used to the way things are, and we don't want to rock the boat. Sometimes we don't see that the boat is sinking until it is too late. I hate firing people, I really do. But over the years I have done it when it was merited. Let us know how things work out and all of the details of your new "incentive" program.

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Old 01-06-2011, 05:20 PM   #3
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Re: 2011 Changes.


Quote:
Originally Posted by BamBamm5144 View Post
Well, we know that I have some questions and problems. I posted about them as I have a lot to learn and got some great ideas.

Monday came with a company meeting. I told everyone that the guy I just brought on a month ago is the Foreman. You listen to him when I am not here. If he bitches you out, it is because I bitched him out. I trust him the most and he is the most efficient worker.

I also changed the way pay works and so far everyone loves it. Reason why? They (think) are making more money. They are moving quicker and more motivated to get it done. Now I know my direct labor costs before jobs start. I also created an incentive program that they are excited about.

Two weeks ago a laborer kept asking if I was going to get another laborer. I told him I don't need two laborers so if I get one, he is going to be taking your job. He didn't believe me and still wanted one. Well, as of yesterday, he took his job and that shook things up because all the guys thought I would not get rid of that laborer.

Bottom line is that I shook some things up, productivity increased, morale seems to be high and the guys believe they have a future of eventually moving up within the company if they continue to do good work
WOW!

Way to go!

Spill the beans on your pay incentive plan, now!
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Old 01-06-2011, 06:13 PM   #4
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Re: 2011 Changes.


Excellent....

I have a few of my own changes for 2011, but not all are implemented yet....stay tuned.
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Old 01-06-2011, 06:51 PM   #5
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Re: 2011 Changes.


Good work bam, Always intresting to hear what is working for others.

Please share what you switched the new pay program too and the incentive program to go along with it.
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Old 01-06-2011, 08:19 PM   #6
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Re: 2011 Changes.


I have jobs budgeted on what my payroll should be. I figure that out by a percentage of each job. To make it simple let's say a job is 1k. My labor should be at $250.

If the labor only costs 200, 50 gets put in a fund or quarterly bonuses. If it costs 275, 25 dollars gets withdrawn from that fund. I started it with $200.00.

I tell them before the job how much labor should be and it's a fair number. Example today's job was a partial roof replacement of 10sq. Labor price could not exceed 500. They ended up putting $120 in that "fund" today.
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Old 01-06-2011, 08:22 PM   #7
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Re: 2011 Changes.


Sounds all well and good as long as they are adding to it and not subtracting. I bet the first time you subtract from it, there will be discord. They will accuse you of either underbidding or hiding the actual numbers. I hope it works well, but only time will tell.
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Old 01-06-2011, 08:30 PM   #8
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Re: 2011 Changes.


Yes I have already thought about that. They know how it is though. That is money that would usually be put directly in the company and wouldn't be theres in the first place

For now it may work. I will have to see if it will continue to work. If it doesn't I will have to scrap it and think of something else.

They all liked it today!
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Old 01-17-2011, 11:10 PM   #9
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Re: 2011 Changes.


Do you split the pot up evenly, or by position? Like the foreman gets the highest, the installers get middle, and the laborer gets the least. Or an even split? JAW
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Old 01-17-2011, 11:23 PM   #10
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Re: 2011 Changes.


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Do you split the pot up evenly, or by position? Like the foreman gets the highest, the installers get middle, and the laborer gets the least. Or an even split? JAW
It would be unfair to do it evenly. I've only done two jobs so far this year so it's still a test in progress.

It goes by title and length of time employed.
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Old 01-17-2011, 11:37 PM   #11
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Re: 2011 Changes.


No, I didn't think it would work like that. Keep us updated, I have thought about trying to do something like that, and as long as you have a good foreman who checks quality control I would imagine it would work. JAW
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Old 01-18-2011, 09:02 AM   #12
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Re: 2011 Changes.


Quote:
Originally Posted by BamBamm5144 View Post
I have jobs budgeted on what my payroll should be. I figure that out by a percentage of each job. To make it simple let's say a job is 1k. My labor should be at $250.

If the labor only costs 200, 50 gets put in a fund or quarterly bonuses. If it costs 275, 25 dollars gets withdrawn from that fund. I started it with $200.00.

I tell them before the job how much labor should be and it's a fair number. Example today's job was a partial roof replacement of 10sq. Labor price could not exceed 500. They ended up putting $120 in that "fund" today.

Just remember people forget really quick.

With a new pay program they are excited and overly ambitious for the first week. then they will start to die back off very quickly.

I would suggest every 2 weeks or so you have a very brief meeting with them. Let them know, as off now you guys have saved up an additional $4,000 if you stay on this track at the end of the year you will have saved $45,000

If you keep it fresh in their minds they will continue to work hard.
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Old 01-18-2011, 10:46 AM   #13
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Re: 2011 Changes.


Quote:
Originally Posted by nlgutters View Post
Just remember people forget really quick.

With a new pay program they are excited and overly ambitious for the first week. then they will start to die back off very quickly.

I would suggest every 2 weeks or so you have a very brief meeting with them. Let them know, as off now you guys have saved up an additional $4,000 if you stay on this track at the end of the year you will have saved $45,000

If you keep it fresh in their minds they will continue to work hard.
Yes sir, fresh is best.

Bam, 3 months is a long time for some people. Try and monitor the motivation so you can be sure they aren't losing sight of it.

Be careful about too much transparency in the pay scale for the ranks. Know that some employees have trouble when they know they make $X.00 while so and so makes $Y.00. Dividing up a bonus might be tricky.
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Old 01-18-2011, 02:10 PM   #14
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Re: 2011 Changes.


Very interesting idea, I believe the best employees will be the most motivated with this. It brings measured rules and standards, which any good employee would love to have. Because good hard workers, with a good ethic are self-competing in nature. Like a runner trying to beat his last time. The only problem will be trying to make this new program stick in the mindset of the "group". Group think is very powerful, and one idea to transform this would be to also form an environment that breads competition within your organization.
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Old 01-18-2011, 02:19 PM   #15
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Re: 2011 Changes.


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Very interesting idea, I believe the best employees will be the most motivated with this. It brings measured rules and standards, which any good employee would love to have. Because good hard workers, with a good ethic are self-competing in nature. Like a runner trying to beat his last time. The only problem will be trying to make this new program stick in the mindset of the "group". Group think is very powerful, and one idea to transform this would be to also form an environment that breads competition within your organization.

You have to remember the good employees start policing the bad ones.

Its one thing f-ing off and screwing the boss that does nothing. But stealing form the guy you are in the trenches with every day won't fly.

They will start speaking up about a lousy employee.
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Old 01-18-2011, 02:26 PM   #16
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Re: 2011 Changes.


The day that made me start to think about it is when I was spending time on the ground cleaning up with a laborer. I told him of how I used to get paid by the square. He said that would screw him out of money. I asked how. He straight faced said because everyone else will work harder and he will get less hours.
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Old 01-18-2011, 02:43 PM   #17
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Re: 2011 Changes.


Quote:
Originally Posted by nlgutters View Post
You have to remember the good employees start policing the bad ones.

Its one thing f-ing off and screwing the boss that does nothing. But stealing form the guy you are in the trenches with every day won't fly.

They will start speaking up about a lousy employee.
I think you're right, and it is true 90% of the time. The post you quoted of mine is referring to the "comfort" mindset that prevails over time in any work environment. Group think rules the day. That doesn't mean the laborers are running things, but the group will only be as good as the lowest guy is performing. I've seen it in action too many times, with great leaders running the crews. How many times does the lead guy end up picking up slack, cause time constraints and others not fully pulling their share one day vs the next? This whole subject I think goes much deeper, even the culture of our society is part of the discussion really. I will lay out the following as another vantage point to think of..

When our nation was a "producer" economy, meaning we made what we used and consumed, it was an ethic of pulling ourselves up by our bootstraps. Today all these same "notions" still are being used, yet, our economy is now a "consume" based economy, in which we ask for others to go out into the woods and get our meet and build things and ship through the giant seas to our shores. Just a deep thought I guess.
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Old 01-18-2011, 04:19 PM   #18
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Re: 2011 Changes.


Bam, maybe you could disburse funds quarterly in stead of yearly, to keep the idea fresh?
Jim

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