Incentives for your workers

Discussion in 'Marketing / Business / Advertising / Websites' started by Richard Baldwin, Oct 2, 2008.

  1. Richard Baldwin Moderator

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    I've been trying to develop a way for our tech to get excited about upselling or a job turning out to be bigger than expected. To not mind if it means running a bit late that night. Impossible? Hm, well depends on a few things.

    1. Personality, enthusiasm and energy level of the tech

    2. Is the tech earning a commission or bonus for doing extra?

    I find if the tech or worker gets into a habit of going home early when the job is done, then it backfires on the times you need them to put in a little extra.
    Only an owner knows that working late because a customer added a couch, loveseat and four chairs to the carpet job is a good thing.

    I havent made it to the point where I can put my tech on full commission, but I am trying some other ideas, such as a small cash bonus if we clear a certain amount in sales for the week.

    Anyone have any other suggestions?
  2. Rob Lyon New Member

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    We have a gross sales bonus program, but if we have a good month, they can add an extra 2 weeks of compensation in bonus, gets them $$$ motivated. We also give away gift cards as well as other prizes for client feedback and attendance. They love the emergencys because it just makes it easy. I agree, insentive is very important.

    Ps, They are Paid hourly plus a monthly bonus program

    All The Best, Rob
  3. Richard Baldwin Moderator

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    I dont get it, youre paying them an extra 2 weeks pay if they have a good month? Sounds "not doable" to me!

    We have decided to switch our tech over to commission. We hope he takes it well. We dont want to be paying him for standing around the shop or riding in the van. We want to pay him for what he accomplishes, and to get excited about upselling and doing extra work at a job. We need him to feel the same way that I, the owner feels when a customer adds to a job and it means were going to be working harder and working later, but bringing home more money as a result. The only way to make him enthusiastic about the work is commission. If that doesnt, then nothing will.

    Were going to try him on 15% of the pre tax total, for jobs he works on, keep in mind, he is working with me at the time, not solo, so only doing half the work anyways. As a duo team we fly through jobs quite easily and quickly and still maintain high quality.

    We worked out the 15% thing based on this weeks sales, and it turns out he would have been earning $1hr more if he were on the commission. Downside of course is if there is a slow week, such as there are in Jan-March, his paycheques are going to be pretty low, just like mine that time of year.

    I figure if he walks, he walks, I hope he doesnt but this needs to be set up in a way that helps the company and develops the right attitude in the tech. We need to get his mind off of "going home early if he gets it all done" and more on "how can we bring in more for the company". Im hoping commission will help.

    I worked commission when I was a tech for another company, and the pay was actually pretty good. I had incentive to stay late and do area rugs in the shop after work because I knew it added to my paycheque. Im hoping this guy starts thinking the same way.
  4. Ho0tz04 New Member

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    This question has way to many answers lol. it all depends on the size of your company to the possible pay structure you'd go with. But yes a commission based income does make employees upsale more. Its the only reason why I'm still with it LOL.
  5. Richard Baldwin Moderator

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    Im still mulling it over to be honest. I have the rest of the weekend to decide if Im going to put my foot down and tell him Monday he's on commission. Bit of a gamble, but then again, so was going into business in the first place!
  6. Rob Lyon New Member

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    Richard, I said that thay CAN get a bonus that equals a couple of weeks , it depends on the sales, for instance, we were flat this month (no bonus), it gives them the insentive to cross promote our business and yes, upsell.It is all upfront, we do not put any emotion into weather they get it or not, in fact my account figures it out for us.

    Ps, I have also been on strait commision before, and I did not want that to be the base of our compensation system, I have seen too much turnover in the past.

    PSS, I am sorry if I was not that clear in the original post!

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