Incentive/commision bonus

[cw0682]

Hey, just wanting your all's input on this....

My employer's management team is talking about installing a new incentive program into our compensation package. I don't know all the details, its just in the brainstorming phase right now. Regardless they are wanting to pay us a % of our billable work, I think and my boss asked us to think about a number we would like to get. I'm assuming it will be no more than 3% but who knows, which by the way would be fine by me. Anyhow just looking for any input from any others that may have expierience dealing with a program like this. By the way, we are not a residental outfit at all. Large tonnage and BAS mainly.

Also, I don't think this is going to affect our base pay scales, I expect they will stay the same with the regular meritt increases.

Thoughts and opinions? And what would be a good number? My first responce was 100% but I doubt that will fly.

[Frostie]

If they are not touching your base pay then it would be beneficial for sure. But sometimes companies try to create incentive based pay, they are trying to get you to do more work/sales for less money. This type of pay is nicely nestled in the pitch that if you work alot or sell alot you make alot more money, what they don't tell you is that if the company is slow or the economy slows down then your pay goes with it.

[Doesn'tPhaseMe]

What I have seen is a small % with a capped number that is only for new work that you generate. So if the office sends you on a service call and it results in a $15k compressor job you get nothing because you did not generate the work. Now while at the same job you notice a condenser water pump with a noisy motor and turn it in. Now if that job gets approved and done you get a % on that because you generated that job.

It's a nice system when it works and it does not create mechanics just changing good parts to make a buck. The last place I worked at did a horrendous job of tracking what work the guys were turning in, what was being done and what was being paid out. So it does need to be done right by the office if it is going to work.

[jrmech]

The first company I worked for was resi, they were giving out 5% for sales of furnaces, a/c etc. of course you would of had to be a service mech to have this incentive as installers never had communication with customer until the day they installed..as for commercial, I worked for 2 companies and none offered this type of incentive, it would be nice though.

A buddy is a forklift mech and gets a very nice commision on all parts he sells along with a handsome salary and benefits.

[nesc522]

That doesn't seem like trouble to you guys? I would think the customers would be getting porked heavily if you put service techs on a comission of parts sales. We have guys that I know for a fact would ruin good parts just to quote and change them. Hell they do it know just for the hours.

[pauls heating &]

my old co used to have a 2% service incentive when you topped 10k service
per month..( a nice lil bonus - if you arent a snake )
well theres always one guy-finding the most to replace and generating complaints from customers ( commercial maint ) that the boss eventually
ended the bonus program - it was amazing the stuff he came up with to repair
/ replace..one of his favorites was circuit boards cause they " looked "
bad...
his main concern was his bonus/finding more $ for his wallet $$$$$$$

[sw_lv2005]

Is commision the same as flat rate. how much is the noramal prectenage for repair a part/ is it like 30percent say you books says 500 dollars cond fan motor change/your precentage is 150 dollars off the 500 or most companies lower than that as far as your precentage and if you sell a new unit you get 10percent of that, just wonder what the normal precentage rate is, will be getting back into the field in a year was use to time and material, but company i will be going with does commision

[pdrake65]

That doesn't seem like trouble to you guys? I would think the customers would be getting porked heavily if you put service techs on a comission of parts sales. We have guys that I know for a fact would ruin good parts just to quote and change them. Hell they do it know just for the hours.

It has been my experience that these systems don't work the way they want them to because of the reasons you stated.I've seen a company fall to the bottom doing this....sabotaging equipment and got caught.Not all of the techs...just one...that's all it takes to ruin a company's rep!