Anyone Pay Hourly + Bonus (pay for performance)? - Cleaning Talk - Professional Cleaning and Restoration Forum
 
Thread Tools Display Modes
post #1 of Old 10-08-2013, 12:25 PM Thread Starter
Junior Member
 
Join Date: Oct 2013
Posts: 6
Anyone Pay Hourly + Bonus (pay for performance)?

I'm trying to wrap my head around the logistics of creating a pay-for-performance workplace with my residential cleaning business. I am just beginning to hire, so there's no transition away from a "traditional" model to deal with.
I'd like to do something along the lines of paying around $8-9/hr then have about $3/hr in bonus for variables such as:
work attendance (on-time, not calling in on short notice, etc)
following policy (dress code, customer service expectations, etc)
work quality (based on inspection, customer feedback, etc)

for infractions of failures, there would be dings against the bonus (varying amounts). If there are no infractions, they are eligible for the full bonus.

The bonus would be reset every several pay periods (I haven't decided yet...every 4 weeks, 6 weeks)

My concerns about this are the tedious nature of keeping up with it in terms of payroll. I want to have some sort of merit based pay, but I don't know how this plays out in the real world.
Feedback?
And I'm open to other ideas on merit based pay, too.
thanks!
OasisMaker is offline  
Sponsored Links
Advertisement
 
post #2 of Old 10-09-2013, 02:58 PM
Junior Member
 
Join Date: Oct 2013
Posts: 5
I like this idea and may apply something like it to my own business. Thanks
tracyselena is offline  
post #3 of Old 10-09-2013, 05:52 PM
Senior Member
 
Maid to Shine's Avatar
 
Join Date: Mar 2013
Location: Colorado Springs, Colorado
Posts: 156
You said pay for performance, so I am assuming that you received that from Dave Ramsey. If so, I completely agree with your idea and that is how we run our business.

I love your idea, however I think you need to tweak it.

Some background on my business on the topics you outlined so that it will help you (not to brag, that is not my intention).

Work attendance - we have zero problem with no shows and call offs. And when I mean zero, I mean in the 6 years of our business it has never happened.

Following policy - Never been a problem

Work quality - We have very high work quality, however sometimes we fail. Our system works great to keep quality up.

First step is hiring right. Since I am assuming that you are using Dave Ramsey, I am assuming that you are using his 12 step hiring process. 98% of your problems will be solved by hiring correctly. Just so you can get an idea, we hire about 1 out of every 1600 applicants.

Second Step, how to pay. Pay all of your people a % of the cleaning. The % should be around 45%. So a $100 house should pay $45.

Third - Do quality checks. When someone fails to do quality, they must fix their mistakes. This may include the tech coming back to fix the mistakes. Since you pay a % to complete the job, they must fix the mistakes without additional pay.

Hope this helps.

-Crista

Last edited by Maid to Shine; 10-09-2013 at 05:59 PM.
Maid to Shine is offline  
Sponsored Links
Advertisement
 
post #4 of Old 10-09-2013, 08:43 PM
Junior Member
 
Join Date: Oct 2013
Posts: 5
That is great advice. I'd never heard of the Ramsey thing..but I will definitely be looking into that!
tracyselena is offline  
post #5 of Old 10-16-2013, 04:19 PM Thread Starter
Junior Member
 
Join Date: Oct 2013
Posts: 6
Crista,

Thank you for your thoughts.
I have seen your thoughtful posts in other threads and noticed that you pay by percentage of job, and I know some other successful businesses do similarly.

Paying the % of the job doesn't really get to the heart of paying for performance, though.

But, hiring rightly makes all the difference, as you point out. It seems to me that you might be in a place of luxury (from hard work) that many of us younger companies are not in, where we aren't getting 1600 applications to choose 1 (or even 5) candidates from.

If I may get side-tracked a bit and ask you a question from another post you made before...You broke down the percentages of where your money goes (approximately)...40% to payroll, 10% taxes, I think the others were 20% owner draw, 20% marketing, 10% other / supplies.
How does that actually work out for you?

I calculate loaded payroll to be 16% +wages (wages+taxes+insurances). So if I went with 45% on the houses, then add my load, I'm well over the recommended 50% mark.

Also, I think I saw that you used only one cleaner / home, right? The challenge that presents for me is the size of the homes where I service. We have to work in teams to cover the size and splitting 45% the way I've seen many suggest here, underpays (in my opinion) the non-team lead person.

Anyway, all that to say, I appreciate your success, your viewpoint and that you share. I don't see it as bragging and it has given me pause for thought, which is why I have some many questions. I came from a pay for performance environment in my former life and I find it quite positive, as well. I just wish someone out there could help me with the real-world logistics of it, or a simpler way that I felt great about. I like what you put forth, but I still have some lingering questions.

Thanks!
OasisMaker is offline  
post #6 of Old 10-16-2013, 05:19 PM
Senior Member
 
Maid to Shine's Avatar
 
Join Date: Mar 2013
Location: Colorado Springs, Colorado
Posts: 156
As for the percentages, we run on roughly (it is a lot more complex) 45% payroll, 5% payroll taxes, 10% operating expenses, 20% owner draw, 10% retained earnings, and 10% marketing. So it works out 20% for me.


Thanks for the other questions, I will PM you some detailed information I don't want public.

-Crista
Maid to Shine is offline  
post #7 of Old 10-18-2013, 03:25 PM
Junior Member
 
Join Date: Apr 2013
Posts: 23
Great info! I will bookmark this!
Continuum is offline  
post #8 of Old 10-31-2013, 08:14 AM
Junior Member
 
Join Date: Oct 2013
Posts: 25
I have one cleaner who seems to be born for this job, i cant pay him enough heh.
Daviddavidson is offline  
Reply

Quick Reply
Message:
Options

Register Now



In order to be able to post messages on the Cleaning Talk - Professional Cleaning and Restoration Forum forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.

User Name:
Password
Please enter a password for your user account. Note that passwords are case-sensitive.

Password:


Confirm Password:
Email Address
Please enter a valid email address for yourself.

Email Address:
OR

Log-in










Thread Tools
Show Printable Version Show Printable Version
Email this Page Email this Page
Display Modes
Linear Mode Linear Mode



Similar Threads
Thread Thread Starter Forum Replies Last Post
Hourly rate goal? workingmomathome Business 26 03-13-2011 06:14 PM
Performance of banking industry and some measurement issues adrir Business 0 10-21-2009 01:21 AM

Posting Rules  
You may post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

 
For the best viewing experience please update your browser to Google Chrome