Contractor Forum

Employee incentive to get more work done

  • 1.  Employee incentive to get more work done

    Posted 06-25-2015 02:55 PM
    We are looking at trying an idea that will give our technicians an incentive to get more work done in a single week. We were thinking something along the lines of if the tech could make around 45 billable hours a week working 40 hours or less for half of the weeks out of the year giving a 40 hour guarantee . Has anyone tried something like this or has something like this that works? If so I would like to hear your comments.

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    Jon marcum
    Service specialist
    Air-Temp Mechanical Inc.
    Cleveland OH
    (216) 579-1552
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  • 2.  RE: Employee incentive to get more work done

    Posted 06-26-2015 11:51 AM
    Throughout the years we have done similar things to incentivize team members, however, I have recently learned that it just doesn't really work.  I fully believe that team members who do great things should be rewarded accordingly, but offering rewards does not cause great things to be done.  I have learned that the right people are going to be great because it is who they are.  Whether they make $10/hr or $30/hr, the people who strive to be great and have the character that supports that will do everything they can to do so.  Once these people are recognized, they should be compensated accordingly.  Business would be so much easier if we can throw money and incentives at people to make them the right people, but it hasn't proven to work that way.  Getting the right people on board is the key to performance and success.

    I recommend the book Good To Great by Jim Collins

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    Joshua Davis
    General Manager
    AccuTemp Air Conditioning and Refrigeration, LLC
    Baton Rouge LA
    (225) 926-2243
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  • 3.  RE:Employee incentive to get more work done

    Posted 06-27-2015 04:19 PM
    Thanks for the input it is really helpful. Yes I understand what you meant by the slippery slope of raising the bar. What kind of rewards have you used that get a good reaction from your employees?

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    Jon marcum
    Service specialist
    Air-Temp Mechanical Inc.
    Cleveland OH
    (216) 579-1552
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  • 4.  RE: Employee incentive to get more work done

    Posted 06-26-2015 11:35 PM
    Just be careful with incentives, once you incentivize to do a little extra, the bar is now moved and therefore the old way means the bar is now lowered, geesh i hope that made sense!

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    Gary Wilson
    President
    Wilson Services, Inc.
    Northampton MA
    (413) 527-3317
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  • 5.  RE: Employee incentive to get more work done

    Posted 06-29-2015 09:54 PM

    The best thing we ever did was to get away from "hourly pay" and use "pay per job". This is excellent with book pricing, every job has a budget and guaranteed profit margin.  Productivity went through the roof.  We calculated a budgeted cost for each task we do and what the anticipated real time it would take for that task and listed that as the pay for that task.  If there is a call back that is from the techs negligence, then they have to go back and fix it for free or get docked for sending someone else out to fix it.  The penalty is always stiff because they only get minimum wage for the work they did instead of the full payment for the job.  They always go back and fix it on there way home.  The best part is your budget is nearly always on target per task.  The staff can't bleed you dry by slowing down the job.  They Never want to go over the allotted time because they fee like they are loosing money.
    Guys stopped milking the clock and started taking pride on finishing a full days work in less than a full day.  The faster techs bragged about what they could do in a day which challenged the slower guys to try and keep up.  The faster and more efficiently they move yields them more pay per hour and they can make more calls in a day.  Tech negligence call backs went way down as well because they didn't want there peers knowing they messed up and had to go back. 
    In NJ the labor laws are geared toward hourly rates with overtime so, you have to pay everyone minimum wage plus a bonus to bring them up to the full rate per task. 
    If you find a tech that can't keep up with the anticipated pay rate per task in the time allotted you may find them leaving on there own rather than needing to fire them and making your unemployment rating going up.  Poor performers will fire themselves.  As long as our pay per task was fair the guys will love this.  Don't be afraid to make changes if you feel you were wrong on your time allocation per task weather it works in your favor or not.   It will build a great working relationship as well.  Go for it!

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    James W Price
    Manager
    Freedom Solar Energy, LLC
    Martinsville NJ
    (908) 642-8394
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  • 6.  RE: Employee incentive to get more work done

    Posted 10-25-2017 01:31 PM
    I'm curious how you do the pay per job for all the crew when one is a lead and the other a helper. Also, What happens if they work more than 40 hours in a week?

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    Lisa Kelly
    Owner/VP
    Manatee Air Heating & Cooling
    Bradenton FL
    (941) 758-2323
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