Working on a commission / incentive plan for my guys... Looking for thoughts and advice...

[Tom's Tree Service]

We have a 4 truck operation in the central US and our guys (as usual) are constantly wanting more $$$....

I have a rough commission plan drawn up and want everyone's thoughts on it or, if you have a good one please post it!!

Here is mine... We run a 3 man crew most of the time... Bucket operator and 2 grounds with a chipper truck and bobcat...

Lead Bucket Operator gets 12.0% of job...
Helpers get 8% of job each. If they have a Class B CDL they get an extra 1/2 percent...

My goal for each crew is $10,000 a week based on 45 hours... Works out to about $80 a manhour.

I also plan to put .25% in a vaca or sick time account that they match weekly as well. That gives them paid time off and they can also draw off that if there are a few days in the winter we can't work...

I give them all a draw against this of $400 a week. In case they have rainy days or whatever...

Also tied to safety and customer satisfaction is a .5% bonus paid quarterly. If no reportable accidents or damage to homeowner property and no go backs that were their fault.

Looking for any thoughts on my plan.... Like most of you I'm sure I am always looking for ways to pay my guys more money but have it based upon productivity rather than just an increase in average hourly pay...

Any thoughts you have would be greatly appreciated positive or negative.

 

[JeffGu]

Wait... you want to offer your employees an incentive program... in NEBRASKA???
That's refreshing. Most folks here would... well, you know...

 

[jefflovstrom]

We hire guys and pay hourly,,,f***k your commision,,,,
Jeff

 

[BC WetCoast]

Check your local labour code and make sure it's legal.

In our jurisdiction, portions of your plan aren't legal.

I don't know what your operation is, but the problem I see is with small jobs. If you have a small $3-400 job, your crew isn't going to be enthusiastic for a $30-40 pay. My friend has a gutter company that pays piece work (so much per foot of gutter, so much per downspout). He has real problems getting his crew to work days where they aren't making big dollars.

The final problem is quality. The risk of loss of .5% paid quarterly may be less than taking the chance to blow a huge top and speed up a job by 2 hrs.

 

[Tom's Tree Service]

Check your local labour code and make sure it's legal.

In our jurisdiction, portions of your plan aren't legal.

I don't know what your operation is, but the problem I see is with small jobs. If you have a small $3-400 job, your crew isn't going to be enthusiastic for a $30-40 pay. My friend has a gutter company that pays piece work (so much per foot of gutter, so much per downspout). He has real problems getting his crew to work days where they aren't making big dollars.

The final problem is quality. The risk of loss of .5% paid quarterly may be less than taking the chance to blow a huge top and speed up a job by 2 hrs.

I agree with you.... For us what I would do is send them out in the am with say 1800 dollars worth of jobs for the day that might be 3 or 4 little ones for example.... So they know what they're going to make pretty much before they leave the shop... I also agree with quality control as well.... I or my manager personally see every job so we won't let that be an issue either...

 

[Tom's Tree Service]

We hire guys and pay hourly,,,f***k your commision,,,,
Jeff

Well then how do you handle the constant want for more money by your employees and still keep everyone motivated at the same time...

 

[BC WetCoast]

Tell them that McDonalds is looking for a new french fry flipper.

If you pay near the top of the scale for your market, then they have nothing to ***** about. They can change companies but won't make more or they can change industries and start at the bottom.

Not uncommon around here for guys to change industries, where forklift drivers, flaggers and truck drivers all make more than climbers.

 

[jefflovstrom]

Well then how do you handle the constant want for more money by your employees and still keep everyone motivated at the same time...

You more money?
Do more, get a cert or two, step up,
everyone wants more money, but if that is their drive, then f'em,,,
Jeff

 

[capetrees]

I try to do more for the guys as opposed to raise in pay or incentives. I buy lunch, they can borrow equipment for their own property's and I often help, I always over pay for the day by a couple of bucks, (not more than $20), pay a little bit more for working Sundays, etc. This seems to keep them happy. This isn't their main source of income so they really don't "need" the job but I do like working with them and we have a great flow between us.

 

[BuckmasterStumpGrinding]

I agree with capetrees. Keep the raise and give it out randomly. 60¢ an hour works out to an extra $100 a month per guy. When you have a big job give them each an extra hundred, or when a small job is done well and gets a complement give a hundred to everyone on the crew. When someone's car breaks down use everybody's bonus to fix it. If you target the raise randomly it can be much more effective at improving morale.

 

[Frogfarmer]

Best advice I can give is don't be a ****. Crews work in some of the harshest environments and the worst weather. You put a positive leader on each crew and they will want to work. Poor leadership is the number one problem with keeping people. I have struggled with the very same situation. As an owner you are concerned with the bottom line. As an employee you are concerned with day to day living and family issues. Take care of the employee and their family and they will not want.