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jay moley

  • Posts: 482
Changing employees pay/incentives
« on: January 02, 2020, 09:54:35 pm »
Ok so I've decided to incentivise my 2 employees to up productivity.

One earns £100 a day the other £105.

We currently do £350 a day - I know this is too low from people's posts in the past.

In the long term I'd look to replace both and lower the day rate, but for now I need them.

How would you go about it chaps?

Thanks as always.

Ooooooog

  • Posts: 1083
Re: Changing employees pay/incentives
« Reply #1 on: January 02, 2020, 10:33:00 pm »
Go round with them and show them the speed they should be working.
Are they in two separate vans?

Stoots

  • Posts: 6211
Re: Changing employees pay/incentives
« Reply #2 on: January 02, 2020, 11:34:28 pm »
You are paying them too much already


Lee Pryor

  • Posts: 2287
Re: Changing employees pay/incentives
« Reply #3 on: January 03, 2020, 07:11:45 am »
You cannot legally lower employee wages without them agreeing to it first.
The best way to predict the future is to create it.

Lee Pryor

  • Posts: 2287
Re: Changing employees pay/incentives
« Reply #4 on: January 03, 2020, 07:15:43 am »
What you can do instead is give them a monetary monthly target that needs to be met in order to get them to generate more money each month. It would need to be fair though. If they don't make it get rid of them and replace with someone on a lower day rate but include and end of month bonus for making the target.

Your welcome
The best way to predict the future is to create it.

jay moley

  • Posts: 482
Re: Changing employees pay/incentives
« Reply #5 on: January 03, 2020, 08:46:08 am »
Go round with them and show them the speed they should be working.
Are they in two separate vans?

They are in one van, together.

I know it's poor.

jay moley

  • Posts: 482
Re: Changing employees pay/incentives
« Reply #6 on: January 03, 2020, 08:46:52 am »
What you can do instead is give them a monetary monthly target that needs to be met in order to get them to generate more money each month. It would need to be fair though. If they don't make it get rid of them and replace with someone on a lower day rate but include and end of month bonus for making the target.

Your welcome

Thanks for your thoughts.

What monthly target would you go for?

Lee Pryor

  • Posts: 2287
Re: Changing employees pay/incentives
« Reply #7 on: January 03, 2020, 08:58:28 am »
I cant answer your question because I dont know your business model, prices, ect ect. Only you can answer that. It should be a target that is still doable if they were to have 2/3 days off a month, which they should be using to take their holiday pay.

In the mean time I would be changing to 2 vans. And I still cant understand how your running the business at a loss every day?

£350 - VAT £70 - 2 staff members £205 leaves £75 then running costs then employers NI staff holiday pay ect ect. Only way I see your doing this is by not declaring the cash you get and your 2 are "self employed" I would sort your model out fast before the tax man pulls your pants down. Sorry for the tough love.
The best way to predict the future is to create it.

HampshireWindowCleaning

  • Posts: 601
Re: Changing employees pay/incentives
« Reply #8 on: January 03, 2020, 04:34:21 pm »
You're paying them the right money but they should be doing £350 a day each, not between them, do you even make any money out of this?

Status Check

Re: Changing employees pay/incentives
« Reply #9 on: January 03, 2020, 04:44:56 pm »
You need to sack both of them and start again.:-)

NWH

  • Posts: 16952
Re: Changing employees pay/incentives
« Reply #10 on: January 03, 2020, 04:57:58 pm »
If they are doing that amount between them from 1 van as you say that’s poor,I don’t think it would ever work having 2 employees in 1 van everyday,mind you it’ll give em plenty of time to moan about the boss together lol.
I don’t know what kind of work you have but I would be expecting that from each of them in a van of there own,I know someone that does this but the 2 blokes are self employed in there own vans,he takes 45% for himself and the rest is there’s,he pays them and deals with any late payments.

Crystal-clear

  • Posts: 3029
Re: Changing employees pay/incentives
« Reply #11 on: January 03, 2020, 11:27:43 pm »
Hi again.

Well you won't be in vat as the max turnover on 240 days is £84k so say 5k less for bank holidays etc makes £79k.
With those wages I would say you are lucky to see a £100 a day.
Not to turn nose up at but if and when van breaks down you'll feel the pinch.

You need to lay one off I know it's hard but you do the work with one person even at 350 that leaves you £250 and that's loads better.
Then if you plan to expand leave it one man per van.

Dry Clean

  • Posts: 8856
Re: Changing employees pay/incentives
« Reply #12 on: January 04, 2020, 12:08:01 am »
You've left out the most important piece of info, with your pricing what sort of money should your guys be making per day, how many properties do they clean ? in other words are they lazy or are you underpriced.

NWH

  • Posts: 16952
Re: Changing employees pay/incentives
« Reply #13 on: January 04, 2020, 12:21:43 am »
1 man working a full day if you have decent work should be able to clean 400 quids worth of work,if it’s worth his while he’ll get that much work done if you pay him 100 a day he make excuses and say it’s not doable.

Simon Trapani

  • Posts: 1561
Re: Changing employees pay/incentives
« Reply #14 on: January 04, 2020, 08:37:26 am »
1 man working a full day if you have decent work should be able to clean 400 quids worth of work,if it’s worth his while he’ll get that much work done if you pay him 100 a day he make excuses and say it’s not doable.

One man turning over £2000 a week??? Yeh right lol.  ::)roll Good luck.

Stoots

  • Posts: 6211
Re: Changing employees pay/incentives
« Reply #15 on: January 04, 2020, 09:01:06 am »
1 man working a full day if you have decent work should be able to clean 400 quids worth of work,if it’s worth his while he’ll get that much work done if you pay him 100 a day he make excuses and say it’s not doable.

One man turning over £2000 a week??? Yeh right lol.  ::)roll Good luck.

I don't see why not.

I mean I couldn't do it in my area with my pricing but I only average £12.

I don't see why someone who averages £20 couldn't do it. It's only 20 jobs a day.

DrewHastings

  • Posts: 43
Re: Changing employees pay/incentives
« Reply #16 on: January 04, 2020, 09:14:02 am »
Is it your van? If so, bring it in for 'maintenance' for a day, and install a tracker. Let them know it's been done, and see what happens.

Are they paid day rate, or hourly? If day rate, flip them over to hourly, combined with the tracker above will keep a closer eye. If on hourly, and their worksheets claim they are working more hours than they actually did is a good reason to terminate with immediate effect.

Dry Clean

  • Posts: 8856
Re: Changing employees pay/incentives
« Reply #17 on: January 04, 2020, 09:44:39 am »
1 man working a full day if you have decent work should be able to clean 400 quids worth of work,if it’s worth his while he’ll get that much work done if you pay him 100 a day he make excuses and say it’s not doable.

One man turning over £2000 a week??? Yeh right lol.  ::)roll Good luck.

I don't see why not.

I mean I couldn't do it in my area with my pricing but I only average £12.

I don't see why someone who averages £20 couldn't do it. It's only 20 jobs a day.

Yes but we are talking about Nigel 2+2=6, as for the rest of us what we should be able to do on paper and what we end up doing tend to be worlds apart.

NWH

  • Posts: 16952
Re: Changing employees pay/incentives
« Reply #18 on: January 04, 2020, 09:47:32 am »
You’re quiet welcome to come down and sit shotgun with me for as long as you like.

dazmond

  • Posts: 23966
Re: Changing employees pay/incentives
« Reply #19 on: January 04, 2020, 09:59:41 am »
Hi again.

Well you won't be in vat as the max turnover on 240 days is £84k so say 5k less for bank holidays etc makes £79k.
With those wages I would say you are lucky to see a £100 a day.
Not to turn nose up at but if and when van breaks down you'll feel the pinch.

You need to lay one off I know it's hard but you do the work with one person even at 350 that leaves you £250 and that's loads better.
Then if you plan to expand leave it one man per van.

this seems to be the most sensible post on this thread......id go even further though and sack em both and keep the best work for myself,sell a bit of work on and condense it into a 30 hour week. ;D
price higher/work harder!