Paying employees by the hour is basically writing a blank check...

...and saying "Just let me know how much I owe you when you're done!"

I swear to god if I am not with them every job takes twice as long, and I'm not going to continue doing it. Anybody on here who knows me knows my business is slightly different than the average as I do junk removal and scrap is a by-product for me. However, I have heard others on here talk about how to compensate helpers in their businesses and I am looking for some guidance in mine.

I am looking for suggestions on how to either pay "piecework" or a percentage of jobs.

For instance, when we do a hot tub they'll usually make out well. Takes about three hours for two guys including dumping debris to do a hot tub. I typically pay the non-supervisors $10 hourly, so my costs without getting into labor burden taxes and etc. is about 60 bucks. I figure pay them (this is not well thought-out yet, I am just venting here!) a total of ninety bucks, ($40 each and an extra $10 for the supervisor) and I typically charge a customer $350, which would leave me a gross profit of $260, less another eighty or so for dumping, fuel and wear on the truck. This actually pays them slightly more than what they are currently making, assuming no long lunch breaks and other jerking around. Also give them an incentive to get done faster.

I want to come up with something that incentivizes them for doing loads of other trash as well. For instance, a full truckload of trash is something I charge $400-$450 to do. A good rule of thumb is this will take them three hours to do. A small, minimum load I charge $150 for and usually takes less than an hour.

Any thoughts or ideas guys? I know this is going to be met with strong resistance. It may require me to make some personnel changes to implement this!

how about something along the lines of a third of profit after fuel and dump fees.

might move faster so they can het more jobs done in one day or same amount of pay for fewer hours.

or pay by the type of job. hot tub removal pays x amount and so forth

HMMMM.........Do you give all the estimates and set all pricing or do you just send crew then charge by how much of the truck they fill up...........A % is usually a better way to give them incentive if you have enough work to go around (for example they could do two jobs in one day and make more than ****ing off on the one job site)............Their is always a more hands on approach for example get you a car cheap on gas and just randomly pop up on your job sites!!!!..........Not really my biz but how many jobs do you have going on per day per week etc......That info would be more helpful......If you don't have much work the hourly guys are going to "milk" the clock........When I was in restaurant biz and times were slow I would hang around on the clock sometimes just to get an extra hour or two

Just trying to help as someone who has ran a fairly decent size trash removal service in a fairly large city (nashville)

If you like to pm me...

Burly what type of truck /trailer do you use for your trash outs?

I would give them a job to do and a time frame to get it done in. Then run a weekly tally of jobs done in time specified. Give bonus based on that. Be up front with your employees. Tell them if you think they are not getting things done in the time you think it should take and that they are costing you money by not doing so. Offer a large bonus for the guy or crew who gets the most done in the month on your schedule.

was hoping this topic would move further (where u at Burly???).........Guess your busy I just was hoping to hear some more sappy gossip about your lazy staff (KIDDING!!!!)..............Good luck to all and KEEP SCRAPPIN

Burly-
I feel for you man.. Over the last 3 years of running my own contracting company I have tried in vein to find guys to work FOR me.. and get all kinds of offers of people wanting to do what I do.. but then none have the work ethic and drive. I got into contracting because I knew that if I did 2 simple things. I would be ahead of 90% of contractors:
1. Return a Phone Call
2. Show up when I say I will

In 3 years I have yet to find anyone who fits into my camp of "hungry, driven, and passionate" So many people want to "do their 8 hours and then hit the showers" They are satisfied with "Good Enough" They work to make enough money to "Survive" instead of "THRIVE" and I've come to realize that good help is really harder to find than I ever anticipated! I wish you well with your situation.. and wish I had the answer to give you!

I agree with mike if you give them a percentage of the profit it will cost you less in the long run. If they mess around they get paid less and you lose less money. If they work more you end up with more and so do they. It is a win - win but more so for you because you don't end up giving a blank pay cheque like you said.

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Originally Posted by mikeinreco

was hoping this topic would move further (where u at Burly???).........Guess your busy I just was hoping to hear some more sappy gossip about your lazy staff (KIDDING!!!!)..............Good luck to all and KEEP SCRAPPIN

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Yeah Mike I was hoping the topic would generate a little more activity. But since they ARE willing to be out on jobs LONGER to make more money, I'm hoping paying them a flat rate will motivate them to get more done in the course of a day.

I was hoping this tread went on also, I also do trash hauling and I wanted to share what has worked for me, When I started doing trash removals we used a landscapers trailer 16 feet long no dump hard work especially in the tropical heat, I always tried to have two jobs a day booked one in the morning one in the afternoon. Some days we could not finish the two jobs with a three man crew. I went to a auction and bought a real trash truck.here is a picture of the truck we use now, it looks like it cost more than it did it's a peter-built with a/c. The trash hauling business is good in this area anyway I am very lucky in that I have two very dependable men that work the trash hauling business. Since buying this truck we are more efficient and I make more money. I pay them 125.00 a day if they get done in six hours or eight and I also split the scrap metal money with them from there trash jobs. I believe in that fact that you are as good as your people, I can only drive one truck at a time.

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Originally Posted by 1956

I was hoping this tread went on also, I also do trash hauling and I wanted to share what has worked for me, When I started doing trash removals we used a landscapers trailer 16 feet long no dump hard work especially in the tropical heat, I always tried to have two jobs a day booked one in the morning one in the afternoon. Some days we could not finish the two jobs with a three man crew. I went to a auction and bought a real trash truck.here is a picture of the truck we use now, it looks like it cost more than it did it's a peter-built with a/c. The trash hauling business is good in this area anyway I am very lucky in that I have two very dependable men that work the trash hauling business. Since buying this truck we are more efficient and I make more money. I pay them 125.00 a day if they get done in six hours or eight and I also split the scrap metal money with them from there trash jobs. I believe in that fact that you are as good as your people, I can only drive one truck at a time.

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That's the coolest upside down trash truck I have ever seen LOL..........Wow I could only imagine pulling up on some of my old trash outs with that monster........We talked about a dump truck when I was in Nashville (floods generated lots of trash) but we never did because commercial dump rates were so high........Either way cool truck!!!

Most employees are going to f around.... If you teach them too much they will take from you. Cant do profit sharring, but may be able to pay on productivity. Normal job pays XXX, done quicker and professional gets xxx, Not EVERY time but extra when you feel like they deserved it!

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Originally Posted by hobo finds

Most employees are going to f around.... If you teach them too much they will take from you. Cant do profit sharring, but may be able to pay on productivity. Normal job pays XXX, done quicker and professional gets xxx, Not EVERY time but extra when you feel like they deserved it!

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You are never going to find reliable unsupervised workers unless they are getting their cut of the job period (basically partners). You pay by the hour and they will stretch that time out to make more money. You pay by the job and most likely they will feel cheated/overworked and not show up again if they even bother to finish. Vague promises like extra money "when you feel like it" just makes them cynical. These workers have no skin in the game. The job is a part time call you when I need you and most likely doing different things all the time. The kind of people you will find willing to do it will also be able to find other odd jobs and will stick to what pays them the most for less work (or less back breaking work anyway).

You need to either hire a supervisor you trust or you watch the workers yourself. Anything else will not work. And you will go through a ton of workers, even ones you figured were good at the job when they find something better that pays more.

The problem with trying to find a way to motivate people, players, employees is that what works today may not work tomorrow. Sometimes it's $$, sometimes praise and sometimes just a good old fashion kick in the ass. Being able to read what is going on with the staff/team and finding a fresh motivator is what will keep you on your toes.

Determine who is part of the core, who has potential and who are the warm bodies and then have a bag of tricks for each. I used to love the challenge but after twenty some years I had enough and now I just have to motivate one dude and he's a push over.

Hourly employees = work will fill the time allotted.

My feeling is most people who hire on to be hourly employees really want a steady weekly paycheck, no surprises. Those of us who choose to be self employed accept that there is no constant in our income.

Those employees who are motivated, driven all those other descriptive words will be your competitors soon or one day. That is unless you give them a good enough reason to stay an employee.

If you have more than one crew and crew leader consider putting one of the crews on incentive or just the crew leader. Be clear your current expectations and what you want to have happen in the future. ie I want my company to grow and make more money. I am willing to pay you more to accomplish this. This is how you will ensure the company makes more money.

If you get one crew doing it you should find the other crew(s) and leaders will be hungry for a chance to participate.

I think you really need to spend your time developing the crew leaders and other leaders within your company. One of most difficult problems faced by small company owners is getting beyond what the owner can directly supervise. I think you are at that point. Best of luck and I enjoy reading your posts. Mike.

One simple solution to keep employees motivated is you start them at minium if paid hourly. If they want to be paid more, then they have to work for it.

Agreed with Miked. There come a point(which seems you may be at) where(from what I have heard) you have to change gears, yourself. Go from being overseer of all to delegating tasks, slicing up the responsibility pie...

It sounds like you are just at a difficult point, I hope someday to have those worries as it smells like a recipe for success may be cooking.

Now I'm hungry, perhaps overindulging in the food/cooking metaphors is my stomach overtaking my brain.

I will pay by the hour since i am there always pushing my guys to keep up with my pace. However if they finish the job before the allowed amount of labor i including my bid I give them a bonus on the difference. this always makes them hustle to get out quick and get the extra money.,

I usually pay by the piece for productivity like 50cents for hard drives printers and such $1 for laptops and so forth which on average is about $15-20hr and also give various bonuses and food as well not everyday but enough to make it a nice thing its a little more complex that this but giving the idea of how I pay employees since most of the time they do not last and there is a crap load of people who want to earn extra money so I have a never ending list

any updates burly!!!