Job Bonuses

[mech_head]

Looking for ideas on how to compensate employees that finish jobs under time. The install crew knows the time quoted for the job and the hours including apprentices and travel are written down on a white board. At the end if it was say a 750 hour job and it was done in 650, the idea is to give the foreman a bonus for doing it under the time. Every time there is a plan put in place though, something comes up that makes it not fit, or the plan fails. Are there some good fail safe ways? Or is it trial by error? What other info should be gathered?
Thanks

[amickracing]

Don't worry about bonus's, few other companies do lol jus kidding!

Where I'm at now, most repairs/projects are subject to a 3% bonus. Do manage that it has to come in on time and at or under what it was bid at too.

[icchvac]

Try taking your men with you and let them tell you how long it will really take.

[rohalon]

Pay them thier hourly wages for the hours they didn't need to work to finish the job. If your 750 man hour job had 4 guys working it and they only spent 650, then split the 100 hours 4 ways, 25 each. If you had 10 guys working on it, but not all of them put the same number of hours into the job, then just figure the ratio of each mans contribution towards the total hours worked and then give him the same % of the extra unused hours.

[nashobasales]

We don't do any jobs that take that long, if they did they would all be fired. What we do is we have a 1% bonus for every job completed on time with no call backs. Get a call back and no bonus. Then the check is cut at the end of the month, seems to work well but even with the bonus we still are at about 20% of jobs get something stupid for a call back. Maybe we need to up the bonus to make the guys realize it really is worth doing right the first time.:rolleyes:

[nashobasales]

Pay them thier hourly wages for the hours they didn't need to work to finish the job. If your 750 man hour job had 4 guys working it and they only spent 650, then split the 100 hours 4 ways, 25 each. If you had 10 guys working on it, but not all of them put the same number of hours into the job, then just figure the ratio of each mans contribution towards the total hours worked and then give him the same % of the extra unused hours.

I like this idea too.

[mech_head]

We don't do any jobs that take that long, if they did they would all be fired.
I am talking commercial where there are jobs that take 8 months to complete. They don't get fired for that.
When a percentage of a job is calculated is that from the total or from profit or as a percent of the hours left? It would be nice to put it on a scale where the less hours taken the bigger the bonus.

[neophytes serendipity]

So, what happens when the bonus becomes the target? I have seen work done by crews chasing the bonus carrot (hackery, but it sure is done quick).... I have worked under foremen chasing the bonus carrot (that sucks).... Sucks even more to be with a bonus company, knowing the layoff will come long before the payout.

I would rather earn my wages working those hours than get it done faster for something like a $5 an hour bonus for early completion... That's if the boss/owner is actually providing job hours that aren't fixed.

[airdocc]

We get a check every six months for the total amount of hours given back to the shop.Example if we bid a job for 10 hours and the mechanic get it done in 8 hours the 2 hours go in to his kitty.If he acumaltes I.E. 60 hours and the end of the 6 months he is paid for the sixty hours.Nevertheless if he gets a warrenty or call back the time comes from his kitty.This keeps the tech from prouducing a poor quality product.We also give 10% of their net profit every six months to them.The spiffs allow the company to demand a better skilled mechanic which prouduces a quality product that gives great value to the customer,the company and the tech.
That being said, managing by statistics "looking at the numbers" will show you if the percentages of profit for your tech are too high.This would indicate their bids are to high or their are corners being cut on the job. It realy works. We have low turn over one guy a year and thats been due to relocation out of state.

[mech_head]

Thanks airdocc, that sounds like a good way to do it. There may be some converting needed to put that in place for a 400 hour job though. Maybe the job could be divided into stages...hmm.

[markettech]

Mech Head - I know what you are trying to do and I commend you for it. I'd probably do something similar if I ever started up again.

...but let me play devil's advocate here for a second (and see how bad I get flamed:D).

If you bid a job at 750 hours and it only takes 650 hours, as a business owner, isn't this part of the "reward" of being the guy that takes all the risk?

I mean, if the tables were turned and you bid a job for 650 hours that took 750 hours to complete, would you be able to get reimbursed from your employees....or would you have to buck up and swallow the pill as a business owner who takes all the risk?

- Just a little something to think about is all.


Zipping up flame suit..........

[mech_head]

You make a very valid point, however the idea is to get more work out of the same number of guys (improve efficiency). This is supposed to encourage them to work smarter and harder and to make sure there is no padding of the time sheet.
If there was a job that they went under by 100 hours I would hope that the next time a job similiar to that is priced it can be priced for less to be more competitive. This is trying to make sure that the same amount of effort goes into the job, so that the pricing can remain close and output remains the same.

[shaun66]

if they are under by 100 hrs, u would quote next similar job to reflect that?


bonus is one time deal ?

[scottsacavsfan]

our installers get paid a christmas bonus based on 3% of the total profit they erned the company for that year

Some of these guys leave the country for christmas and some wish they didnt have so many call backs
It seems to work well

[refrigerationtech]

this is wounderfull idea but wait this job went well but next job he quotes under he looses his shirt cause he wanted to be the cheapest out there and the techs have now to even rush faster to get the job done. great idea i say all the best to him but i think quote what ya have and the extra time in the pot decide to divide it or not but i think the employees should not be stressed out to know if they have enough time but to know they can finish the project on budget and properly doing so. just my .02Cents worth....



if they are under by 100 hrs, u would quote next similar job to reflect that?


bonus is one time deal ?

[JBM1000]

Once you go there you cannot recover again. Your biz owner claims you have done it before, do it again and this is after you have lost your one "key" employee whom always made it happen so you looked great in the limelight.

Second time around you try to recover the past times and be under but find out half your crew either quits or pulls being burnouts now.

Third time around you have replace your critical mass crew and now have the newbies with a great guns attitude and all seems great until you arrive at work and your office is now moved and you "share" one with assistant manager, your told your office is being remodeled and upgraded with newer technology etc. You return on the next Monday and the remodel work crew forgot to not install the new name plaque, so it's not your name on it and your told "well sorry we were wondering just how to give you the news and knew it would be difficult because your such an easy going guy". I guess that keep the jobs under man hrs complete and share the remaining just didn't work out did they?

In closing if you have been ever told to do the job under hrs gig routine previous to asking the forum if it is a good idea, then you are already gone and you just don't know it yet "so to speak"

[comfort comando]

how a bout a incentive. bonus sounds more like a gift that is reflective on how one is liked.
try paying a amount for every hr saved in a mo. say you are scheduled 200 hrs labor in one mo. and you complete it in 160. you also factor in corrections, shop time, travel time, etc... pay say 2.00 per hr. ( 3.00 for OT. hrs. worked) = 80.00 + regular wages

[bob brown]

Unless your company has guaranteed clients to supply all jobs, bidding is most important to survival. If a job came in under 10%, this would be normal for me. But a job at 15% would be high. Consider paying a Christmas or quartly bonus for the 5%. Divide among the workers of the job. If support workers also contribute, then pay them also.

[HVAC Teacher]

My old Co. used to give us "gifts" like new carharts, gift cert.s, sometimes a check.