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OutCole'd
10-29-2004, 12:55 PM
I need to pick everyone's brain.
I would like to set up an incentive/bonus program for my employee's. I am not a real fan of just a flat bonus, because I do not believe it is a great motivator alone.
I am thinking of starting with a set amount for all the employee's base on tenure, then deduct from that amount for mistakes that are made. If one person makes a mistake, the same amount gets deducted from all.
I do not want to make this out to focus on the negatives, but I would like a program, that holds people accountable for their errors.
What do you think? What kinds of programs do others offer? I'm looking for some ideas.

cdog
10-29-2004, 01:00 PM
Just remeber Private Pile from Full Metal Jacket. They all put up with him being a pussy for a while and then one night they snaped and beat his ass with the soap in a sock. If you want to make work hostal, that's a good way to go.

mickeyfinn
10-29-2004, 01:04 PM
I understand making them accountable for their errors but everyone will eventually find out how much everyone else got. To some this will feel like getting their ass chewed in front of everyone else. If it is really intended as a "Bonus" then it would be appropriate for you to either start with nothing or a base amount and work up from their based on "accomplishments" which resulted in a bonus for you or the company.

OC-PARTYCAT
10-29-2004, 01:04 PM
We just set up a program. what biz are you in?

Nucking futs
10-29-2004, 01:04 PM
I ran one at a company that everyone starts out at there base bonus.Then add or deduct monthly for positive or negatives.Hard to say without knowing what you do at your company.but the guys liked it after it was all said and done.We ran a demolition/concrete cutting company so we did it on days and hours worked,equipment upkeep,customer complaints or atta boys.There are alot of ways to do it that will work for your benifit as well.
Tim

OutCole'd
10-29-2004, 01:05 PM
We just set up a program. what biz are you in?
I sell interior trim material, ie. crown, base, flooring, etc.

cdog
10-29-2004, 01:06 PM
You dont want this guy at work do ya.

OutCole'd
10-29-2004, 01:08 PM
You dont want this guy at work do ya.
I already do. :D

cdog
10-29-2004, 01:17 PM
I've been lectured at work by my boss ( a while back ) because of somebody's poor performance and bull shit. I bit back and and threw it in his face. I expect to be rewarded or demoted base on my performance only. In the real world only 2 out of 10 people will rise to the top and they should be reconized for doing so. I like to say "Lead by example". Reward only those who perform and let the other's strive to match their performance.

BADBLOWN572
10-29-2004, 01:17 PM
The best way to do it is through profit sharing. Makes sense because the more money they make you, the more money they make. Any mistakes they make will cost them financially.

OC-PARTYCAT
10-29-2004, 01:20 PM
If you sell..wouldnt a percentage of your "net" be good enough?? or if you have guys in the wharehouse, put a carrot out; set goals for them to meet and award everyone and set it higher the next time. If you have a good leader, he will start weeding out the bad. The way I see it is, If they fucc up...fire em; turn and burn is my m.o.. You will eventually turn up with some really good employees that take pride in their work. The good ones know that if they dont kick ass and make you money, then they dont make money. Its a team effort.

1978 Rogers
10-29-2004, 01:24 PM
You should isolate negatives & possitives per person. You don't want to end up punishing one person for anothers mistake. Also you don't want to reward people who just do average work. You want to reward over achievers, your employees that want more.
Here is an example. I work for a company that has about 10-15 overhead positions who used to split of 25% of our net profit as an incentive. In the past years this was evenly split between the 15 people. I got just under $2,000.00 in 2001. Two years ago the owners changed this based on a point scale. One point for ever year employed and 1 point for every $5,000 dollars of yearly salery. The 2 owners and our GM got a majority of the money. I got an average amount, about $2,000 again. If they would have split this evenly, I would have gotten about $3,000. An extra grand would have been nice. One of the gals who works out front is worthless. She's been here twice as long as I have and makes about 2/3 my salary. She got a bigger bonus because she's worked here longer. Myself and our Designer felt screwed for how much we bust our asses and she recieved more for answering the phones looking cute.
P.S. I have an excell spread sheet comparing the two plans still. P.M. and I'll email it to you, if you want.

switchin'addiction
10-29-2004, 01:26 PM
A lot of people may disagree with me, but I have been on both sides of this situation. I think you should sit down with your employess, and discuss it openly & get their input. Let them know upfront that the final decsion is yours as to how it would be implemented, but you want their input & ideas. You might be suprised as to what they come up with. Just my .02.

Mtg Pro
10-29-2004, 01:35 PM
Measuring errors can be dangerous. Assuming you have the abililty to really measure one. How many home runs do you think Babe Ruth would have hit if they would have told him you won't get paid if you strike out swinging ?
I'm Six Sigma trained. We measured defects in various processes in order to improve the specific process. If you align the defects you are improving with Customer Satisfaction and profitablity objectives of the business you'll have a winner.

Blown 472
10-29-2004, 01:37 PM
Can you do it based on production and what goes out the door rather than each person?

ULTRA21XS
10-29-2004, 01:58 PM
I use to do sales for a motocross graphics co and we use that have a set base salary and commission...If we hit our monthly goal we would get that. If we went over every 10% that we beat our goal by we would get one more point of commission. If you punish the whole company for one person mistake you will have a fight on your hands... but if all sales depts. hit their goal then I would give a company bonus. That way when one dept doesn’t hit their goal the whole company only get hurt a little....
(Do you have your windows cleaned by So Cal Window Washing???)

OutCole'd
10-29-2004, 02:00 PM
The best way to do it is through profit sharing. Makes sense because the more money they make you, the more money they make. Any mistakes they make will cost them financially.
I agree with this, but I am looking at getting out of the babysitting industry.
I am looking for something to try to get people to pay attention to what they are doing. Using a calculator, pulling orders, ordering product, etc. And if just make it a basic profit sharing plan, they are not focused on the problems, just writing & filling orders, and not worried about making mistakes.

OutCole'd
10-29-2004, 02:04 PM
If you sell..wouldnt a percentage of your "net" be good enough?? or if you have guys in the wharehouse, put a carrot out; set goals for them to meet and award everyone and set it higher the next time. If you have a good leader, he will start weeding out the bad. The way I see it is, If they fucc up...fire em; turn and burn is my m.o.. You will eventually turn up with some really good employees that take pride in their work. The good ones know that if they dont kick ass and make you money, then they dont make money. Its a team effort.
Problem, is the labor pool here in Vegas is real weak. Other wise, I would be replacing my entire staff every week. :cry:

Misogynist
10-29-2004, 02:44 PM
Grrrrrrr.... don't even mention employees to me.... grrrrrr.... I used to be a flooring contractor.... years ago.... I about lost my mind... since you are in Vegas... you can appreciate this... I installed the stage floors in the MGM Grand ( now Bally's ) before the fire....I installed 32,000 sq ft of hardwood gym flooring in UNLV.... I also installed two handball courts in Caesar's.... I got so fed up with employees... I scaled down the business and closed it... fed up to the eyeballs with the drama.... after the 80's came and everyone was doing coke... I couldn't stand the flaky behavior of all the workmen.... that was it for me......... :220v:

BADBLOWN572
10-29-2004, 03:00 PM
I agree with this, but I am looking at getting out of the babysitting industry.
I am looking for something to try to get people to pay attention to what they are doing. Using a calculator, pulling orders, ordering product, etc. And if just make it a basic profit sharing plan, they are not focused on the problems, just writing & filling orders, and not worried about making mistakes.
A very basic outline that can be done is to put it into words that they understand.
Employee A not paying attention and pulled the wrong order. (1 hr to load truck, 2 hrs to pull the order)
Customer A not satisfied and refuses order says to pull the right order. (30 min to make decision)
Employee B unloads the truck (1 hour to unload, 2 hours to re-stock)
Employee A is re-pulls the correct order (2 hours to pull the order)
Employee B re-loads the truck (1 hour)
Total labor cost on order is 9 1/2 hours @ $10/hr per employee ($95)
Total hours total budgeted 3 @ $10/hr ($30)
Total loss of $65.00
Then you can also bring it into play since they spent an additional 6 1/2 hours because of a mistake, you had to run crews late into the night on overtime to make up what was scheduled in the time. Keep it basic, but break it down so they can understand. Once they get the idea of how much $$$ it costs to operate business and how one little mistake can cost a lot of money, the employees will realize that it comes directly out of their pocket in the profit sharing check at the end of the period. They will start paying attention and profits should go up.
The other beauty of profit sharing is that since it is not individual, those people who are in line to get a profit sharing check will start babysitting the ones that are not paying attention because they are directly hurting their income (and yours). One tip is to keep it freequent so the employees are always looking forward to the check. Yearly checks are alright, but montly is better. They make the employees feel that the checks are more tangible and immediate.

Havasu_Dreamin
10-29-2004, 03:23 PM
I agree with this, but I am looking at getting out of the babysitting industry.
I am looking for something to try to get people to pay attention to what they are doing. Using a calculator, pulling orders, ordering product, etc. And if just make it a basic profit sharing plan, they are not focused on the problems, just writing & filling orders, and not worried about making mistakes.
Unfortunately, that's what part of being a boss is.
Use a profit sharing plan and then keep track of how each employee does their job. At their annual review, or even quarterly, hand out the bonus with their review and let them know that they got the full amount because they made no mistkes or they got no bonus becue they sucked a$$ all qtr and don't deserve a one. By tying it to their performance review you accomplish two things, 1) they know that the mistakes they make will have a direct impact on their bonus and 2) they are told their performance is lacking and this puts them on notice that they can, and will, lose their job if they do not improve. This way each employee is responsible for their own destiny, so to speak.

DryHeatOnly
10-29-2004, 03:29 PM
I do not want to make this out to focus on the negatives, but I would like a program, that holds people accountable for their errors.
I'm affraid you are though. You're starting with a full pot, then emptying it with each mistake.

OutCole'd
10-29-2004, 03:38 PM
Thanks for all the time you guys put into this!

OutCole'd
10-29-2004, 03:44 PM
I'm affraid you are though. You're starting with a full pot, then emptying it with each mistake.
I agree, that's why I am looking for ideas.

RP1
10-29-2004, 03:48 PM
The best way to do it is through profit sharing. Makes sense because the more money they make you, the more money they make. Any mistakes they make will cost them financially.
Just curious, what do you do for a living?

MagicMtnDan
10-29-2004, 04:45 PM
* Profit sharing is the way
* Don't penalize those who screw up (monetarily) **
* Reward those who help you/your company succeed
* Pay enough to get quality employees
* Don't keep slackers and bad apples around they'll spoil the others **
* Expect more from everyone
* Treat people with respect and expect it in return
* Don't settle for less than the best
* Whenever you hire a new employee hire someone who is better than the person they're replacing (use each oppty to improve the quality of your hires)
* Make sure your best employees are happy and paid well
* Put yourself in their shoes as often as possible to see if you're doing things right
Good luck!

coolchange
10-29-2004, 04:51 PM
What's your company? I laid wood for a while, still do finish work. Thought about trying to get a sales pos or manufacturers rep but some insiders talked me away from it. Said they were always gettin screwed out of com checks and gettin the crap territories from nepotism and ass kissers.

SHOTKALLIN
10-29-2004, 05:09 PM
Bonuses are too damn complicated to figure out to be fair accross the board. key word is fair. It isn't about being fair. You really only want to reward the employee that rewards you. The reality is some people deserve a raise. And some deserve to be let go. period. the average workers are just that. average. give a bonus to those that deserve a bonus just don't call it a bonus call it a raise or profit sharing or whatever. everyone else that doesn't deserve one.....doesn't deserve one. period. everyone thinks someone owes them something for nothing. too damn close to welfare if you ask me. If you want to be Santa Claus then give whatever to everybody but that does solve the problem with deadbeat or medeoker employees.
just my .02

Boozer
10-29-2004, 05:13 PM
Have you considered a leveraged comp plan?
In my experience the best performance driven pay structure is a leveraged comp plan and WILL drive the most productivity from your employees. It will also show you quickly whos working for you and who's just there to tinker around and collect a paycheck.
Here's how it works.
Every employee has the same Salary. We'll say 52K annually. However, they are only paid 37K of that 52K as their base. So they have monthly $1250 at risk. If they meet their monthly performance objective to 100% of the required objective they get at the end of the month their base pay plus their $1250. Now lets say this employee does 150% of his objective. You will take the employees at risk of 1250 and pay them out 150% of 1250 dollars. Giving that employee $1875 on top of their base pay. If they do 200% they get $2500. And so on.
You should also give a semi monthly bonus. Make 70% of your monthly objective by the the 15th of the month and you get an additional $750.
Also, run a monthly contest that EVERYONE can win. Say something like you sale such and such amount of product X this week and you get $100 gift certificate double that set amount this week and we'll double the gift certificate. Because everyone has different tastes in the things they want you can do gift certificates through a company like premierechoiceawards.com where they get a gift certificate redeemable to over 100 retailers. And the best part about the gift certificates is that if given in 50 or 100 dollar incriments the employee doesn't have to pay taxes on it and you still get to write it off. :)
I worked for a company that had this same type of plan and while their objectives were still reasonable I was doing 200% EVERY month.

Infomaniac
10-29-2004, 06:04 PM
Profit sharing.
A set percent multiplied by years of service.
--------------------------------------------------
Or all but 2 get a set $$ bonus. One of the two get twice the $$ and one gets 1/2 the set $$ :D
AKA the big bonus and the shaft.