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What are you using effectively for:

Labor Savings Incentives,

Production Bonuses,

for your staff?

What's worked? What hasn't? Lessons Learned.
 

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I always make sure my employee is paid 5 extra hours of overtime every week. He is thankful and knows I’m trying to help him out when I can. That time and a half adds up quick. I supply work boots and pants/shorts once a year. I despise painters whites so I supply tan carhartts.


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At least one painter I know, its maybe hard to quantify but he pays a bonus on top of what percentage of the job was completed by you. If you got more done then you got paid more.
 

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At least one painter I know, its maybe hard to quantify but he pays a bonus on top of what percentage of the job was completed by you. If you got more done then you got paid more.
I operate in a similar way, if one my guys hits it out if the park it’s probably 100-150$ cash bonus and the end of the week. Not often but just to show my appreciation. On the other hand if I have to re explain something that is an easy to grasp concept I’m not a happy camper and i make them aware of that


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I'm not one to micro manage. Too much paper work. I prefer to pay my guys above average, treat them well and give them flexible hours.(within reason) Happy employees will work hard for you. And bring fresh scones on a Friday.
 

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Money is one thing, but not having to worry about time off is huge. Take as many sick/vacation days as you want. Just give me as much notice as possible. Obviously, they don't get paid if they aren't at work, but I find that they don't drag their feet when they do show up.
 

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What are you using effectively for:

Labor Savings Incentives,

Production Bonuses,

for your staff?

What's worked? What hasn't? Lessons Learned.
As an employee, the following has been a huge incentive for me to work like a Mule for my employer/s:
1. Paid sick leave
2. Paid Holidays
3. Paid Vacation
4. Modest tuition for continued trade related education
5. Continuous Safety Training
6. Commuting support
7. Company funded computer and personal devices
8. Kindness
 

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This blows my mind... but my employees actually opted to trade their bonus plan for vaca days. It was foremen only plan. Some of our guys were making 1200 month in bonus, but others were making 200. The idea in my logical head was that the underperforming guys would want to learn to produce to earn on the level of the top guys...but instead they all just got jealous, blamed the system, blamed the jobs they got assigned, blamed their crews... childish BS that kept them from admitting that they could make changes in themselves and the way they approached their jobs to better their situation. I put it to a vote and by one vote the guys made a terrible (for them) financial decision. Jealousy caused our foremen to decide that they'd rather have less money themselves as long as no one else was doing better than they were. Crazy.
 

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This blows my mind... but my employees actually opted to trade their bonus plan for vaca days. It was foremen only plan. Some of our guys were making 1200 month in bonus, but others were making 200. The idea in my logical head was that the underperforming guys would want to learn to produce to earn on the level of the top guys...but instead they all just got jealous, blamed the system, blamed the jobs they got assigned, blamed their crews... childish BS that kept them from admitting that they could make changes in themselves and the way they approached their jobs to better their situation. I put it to a vote and by one vote the guys made a terrible (for them) financial decision. Jealousy caused our foremen to decide that they'd rather have less money themselves as long as no one else was doing better than they were. Crazy.
Yeah, crazy I guess if you think that people are singularly focused on how much money they make from work. What work actually means to people is complicated. And people obviously vary a lot and making the most per day/hour/job would describe some. But speaking on average, people also want to just have a good work experience. Feeling like they're part of something larger than their own little selves - meaning working with other people to do good things, while making decent money and being appreciated.

The carrot and the stick approach is long outdated for its deficiencies with regards to human motivation.
 

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What are you using effectively for:

Labor Savings Incentives,

Production Bonuses,

for your staff?

What's worked? What hasn't? Lessons Learned.
We are a small company, so we cant do much in the way of bonuses, but I try to show small appreciation frequently.

I try to pay above the going rate.

I give raises annually. I expect a dress code, but provide shirts, and jackets, and warm weather gear like gloves and hats (if they want them for outdoor painting).

Drive-time is frequently given 'one way' on longer commutes. The guys appreciate this, but it can backfire as they learn to expect it.

Round-up when the guys hustle: I let them go early sometimes but pay to the top of the hour, but I make sure to tell them why. 'Great Job guys, thanks.' Again this is clearly spelled out.

I have started using an app for logging in- this keeps things accurate (rounds to nearest 5 minutes), but also allows me to edit. This is new within a month (busybusy and ClockShark), but so far so good!
 

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We have a refinishing division that does onsite Electrostatic painting. They have an incentive program. They are given budgeted hours for a job, and know that if they can finish by or before the budget then they get a percentage of the profit of the job. So if we give them an 8 hour budget and they finish in 8, they get a percentage of the profit. If they finish in 6 they get a bigger percentage, but they lose 2 hours of work. (Hence the Profit being bigger.) So it comes down to them calculating out what makes them the most money. They don't get paid on their next paycheck because if there is a callback, it will eat into their incentive. Our guy that has been doing this for 20+ years can calculate what will make him the most money instantly, and he always makes his incentive.

Trying to do it with Commercial work is hard. You can do the same thing if your schedule of values is solid and you trust your Foremen. They can be inclined to cut corners if they are trying to rush the job. And if you pay them a bonus then something fails 6 months later, you have problems on your hand. We have given bonuses for doing well on Projects though, Lots of times tied to Changes that they catch and we get paid for.

In Tract Houses it used to be piecework. You would pay a set amount for a house. If they could finish in half the time, they made the same money but could do another house and make double.

With us being Union, we can't really do anything like this on the commercial side. But it may be possible for Non-Union shops. You just need to know what you've budgeted for the job and you can track against it to incentivize doing it faster. You just have to make sure Quality remains the same.
 
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