[Dixie Soak]

I have searched through a heap of threads looking for ideas on implementing a bonus scheme for our employees. George Z has a good process from what I have read.

I know its worthwhile as i have seen results in other business's I have been involved in. Finding the right "qualifiers" is the key, does anyone have any ideas? :confused1:

 

[PressurePros]

Dixie, here is what has worked for me. My employee bonus program is actually a pool. From every job, 5% is placed into a fund.

If we get a callback for a mistake, the fund is billed for that. If jobs aren't completed on time.. the fund is billed. When tool inventory sheets are turned in, anything missing is billed. You get the idea.

The first pay period of the month, the previous month's fund is dipersed. The operations manager gets the largest share and its divided on down. This motivates the OM to keep things running smoothly. At the labor end, guys are a bit more careful about tools and being sloppy as it costs them money. Since this money is not in their employee contract it allows me to be compensated for things I could not legally bill employees like lost tools.

 

[vermontpainter]

Ken

Thats a great idea. When you say 5% is in the fund, is that 5% of net profit for each job?

 

[PressurePros]

Scott, its 5% of the gross dollars. The final payout is usually in the 3% of gross range (due to the "withdraws" made) which would significantly affect my net profit but I have the margin to play with by charging right. It is factored into the payroll numbers. Now does it work and justify the expense? I believe so but its hard to tell. I just implemented this last year. For Jason, my ops guy, he averages a $750 bonus per month during the peak season. The newest guy might get $100 to pay his cell phone bill or take the girlfriend out for a night on the town. Are those the right numbers to motivate someone to take the extra steps? My efficiency as measured in total jobs performed went up, the tool replacement cost stabilized but I was also in a growth phase and implented some different systems at the same time, so again it's hard for me to say "Do this guys, it positively works"

 

[HomeGuardPaints]

Google "Gainsharing" its the most effective way to give a bonus to employees that can be directly related to each job.

 

[Dixie Soak]

Thanks Ken, sounds like a workable and ultimately measureable system.
We have multiple teams than can be working 100 miles apart - this makes it hard to be onsite as much as i would like. Productivity is of critical importance, anything i can intergrate that improves it does need considering. I Appreciate your feedback fellas.

 

[Dave Mac]

Ever green technology, owned and operated by Lynn Fife teaches the very system that sounds very similar to Ken's, it is desighned for the painting conntractor. Lynn also has books on the system, he has classes, as well as one on one consulting.

Do a google search for evergreen technology, Lynn Fife and it should pull t up. I have attended his classes, and would refer him to anybody. He knows his stuff.

thanks
dave mac

 

[Dixie Soak]

Ever green technology, owned and operated by Lynn Fife teaches the very system that sounds very similar to Ken's, it is desighned for the painting conntractor. Lynn also has books on the system, he has classes, as well as one on one consulting.

Do a google search for evergreen technology, Lynn Fife and it should pull t up. I have attended his classes, and would refer him to anybody. He knows his stuff.

thanks
dave mac

Thanks for the heads up Dave, I have ordered one of his books (add it to the library!).

Cheers
Hamish

 

[George Z]

Lynn Fife's system sounds like pie in the sky to most painters.

We have a fixed compensation number(about 35-40% of sales price).
It belongs to the painters that work the job.
If the hours don't make budget, we lose money but their wage is guaranteed. So they get to hear me whine
If they are below budget, they get a bonus in the paycheque after the customer fills the completion certificate :thumbsup: