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jay moley

  • Posts: 482
Best way to pay employees?
« on: May 03, 2021, 04:43:34 pm »
Set day rate?

Day rate + bonuses based on work they do?

Percentage of daily turnover?

Something else?

Smudger

  • Posts: 13438
Re: Best way to pay employees?
« Reply #1 on: May 03, 2021, 04:51:45 pm »
hourly - I'm not sure you can set them a "day rate" this is more for self employed - otherwise you are in danger of dropping below Min wage

Darran
Never argue with an idiot, they will only bring you down to their level, and beat you with experience

jay moley

  • Posts: 482
Re: Best way to pay employees?
« Reply #2 on: May 03, 2021, 05:00:22 pm »
hourly - I'm not sure you can set them a "day rate" this is more for self employed - otherwise you are in danger of dropping below Min wage

Darran

Do you offer any bonus's mate based on daily or monthly/quarterly performance?

Smudger

  • Posts: 13438
Re: Best way to pay employees?
« Reply #3 on: May 03, 2021, 05:13:57 pm »
yes I do -

I used to offer a quarterly bonus of between £300 and £500 - but found that was not as motivating as I would have hoped

so now I do a daily bonus - basically they need to hit an hourly rate for the day to get a % bonus ( no snags ) for first cleans I don't set a time just a no snag policy - then for other works I issue a job sheet that lists equipment needed - time to do the job - and description of works - so for example - external Conny roof clean - and full window clean = single operator 1.5 Hrs. - if they do it quicker than this time and don't get snagged then they earn a % of that job price

last month my top man earnt over £550 in bonuses for the month of April ( and still has some large jobs on rollover )

Darran
Never argue with an idiot, they will only bring you down to their level, and beat you with experience

britishwill

  • Posts: 536
Re: Best way to pay employees?
« Reply #4 on: May 03, 2021, 08:23:52 pm »
I think it is best to employee them full time, holiday and pension etc. Dont mention bonus just pay them a decent amount. Every now and again I treat them. I do it so it is not expected but when they do you can tell they appreciate it. I have paid bonus before but it gets complicated and can lead to confusion. I now prefer a decent wage for my guys and at the end of the year if the company has done well give them something extra

Smudger

  • Posts: 13438
Re: Best way to pay employees?
« Reply #5 on: May 03, 2021, 08:36:45 pm »
I agree on principal that bonus shouldn't be needed however when I rolled bonus into the hourly rate the ongoing problem was a marked increase in customer complaints about missed windows, gates left open and equipment and paperwork problems ( not huge but stuff that wasn't there before )

with the return of the bonus all that has stopped - not a single customer complaint in 3 months - vans cleaned - no equipment lost - the whole things runs smoothly

Just remember - there is not a one size fits all - not everyone is motivated  buy £££ - for some its shorter hours and more time at home

Darran
Never argue with an idiot, they will only bring you down to their level, and beat you with experience

jay moley

  • Posts: 482
Re: Best way to pay employees?
« Reply #6 on: May 03, 2021, 09:41:37 pm »
I agree on principal that bonus shouldn't be needed however when I rolled bonus into the hourly rate the ongoing problem was a marked increase in customer complaints about missed windows, gates left open and equipment and paperwork problems ( not huge but stuff that wasn't there before )

with the return of the bonus all that has stopped - not a single customer complaint in 3 months - vans cleaned - no equipment lost - the whole things runs smoothly

Just remember - there is not a one size fits all - not everyone is motivated  buy £££ - for some its shorter hours and more time at home

Darran

Im a bit confused. Can you explain how you did it before that caused problems and what you do now that works well?

I don't really understand how you are paying them.

Thanks

Smudger

  • Posts: 13438
Re: Best way to pay employees?
« Reply #7 on: May 03, 2021, 10:08:27 pm »
employees are on either 30 or 35 hour a week contract - PAYE

our initial bonus was paid quarterly ( once every 3 months ) based on achieving an average rate per hour, lateness, snags and other things - this worked well most of the time but over a 3 month period some guys lost a bit of focus

We then decided as everything was pretty much where it should be added the max bonus (somewhere between £1200 to £2000 a year -into the hourly pay rate - this was fine for long standing employees but new ones seemed to be sloppy and not as focused.

The new scheme is paid at the end of each month - to qualify they need to hit an hourly rate for that day and get no snags - if this is achieved they get a % of that days turnover

Darran
Never argue with an idiot, they will only bring you down to their level, and beat you with experience