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New pay scale- all minimum wage

Discussion in 'Business Fundamentals' started by newhere, Mar 10, 2011.

  1. newhere

    newhere PlowSite.com Addict
    from Fenton
    Messages: 1,288

    Ok this is my idea i would like to implement the coming year.

    All workers get paid minimum wage but every week they get a bonus that would equal out to make a fair pay check for them. So lets use Joe for example, Joe makes $14 per hour at his current position. For a 40 hour week he takes home $560.00 (before taxes). Under my plan he will be paid $8.50 an hour (i dont even know what minimum wage is) so he will get $340.00 and then if he has a good week he will receive a bonus of $220.00 per week. In the end he takes the same amount home.

    Now the catch is if Joe breaks my equipment or does something stupid that in turns costs me money he will not receive a bonus until his accident has been paid for. As you all know we cant just not pay workers and we cant make them pay for damages but we dont have to give them a bonus every week. That is totally up to your discretion.

    This bonus would not be taken away for something like getting a flat tire, or a plow valve not working or even some one else hitting him when it was not his fault. Those are not his fault and he has very little if any control over the situation.
    This is to defray the cost when Joe backs into the light pole or he hits a curb or he hits a snow pile to hard and breaks the windsheild.This is for when he knowingly parks the truck on the wrong side of the road to run in real fast and grab a pop then Mr. officer gives him a $65.00 dollar ticket and he hands it to me. Ok Joe if you want to play that game because the ticket is in my name then i will just take it out of your pay. If you have a problem with that then QUIT!!! becasue then i dont have to pay your unemployment when YOU QUIT.

    Before the season i would sit down and make a MASSIVE list of thousands of different things that were covered and ones that were not covered. It would be clean cut and dry.

    Obviously i will be talking to state officials and a lawyer on this, but i dont see a problem.

    I allready talked to my "better" workers about it and they didnt really care one bit about it................because they all have never broke anything in years. I suspect the only ones that will object to it will be the constant breakers.

    What do you guys think? sound like a idea to make people responsible for their actions?
  2. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    See you in court.
  3. newhere

    newhere PlowSite.com Addict
    from Fenton
    Messages: 1,288

    i dont think so, a bonus is just a gift above and beyond what you expect to make.

    But like i said i will look into it in depth.
  4. procut

    procut Senior Member
    Messages: 902

    I remember a reading about a guy on lawnsite who did something similar. As I recall, at the start of the season, each worker got like $1000 put into their "fund" each time they damaged something, the cost would come out of their respective "fund." Whatever was left over out of the $1000 at the end of the season they got to keep.
  5. newhere

    newhere PlowSite.com Addict
    from Fenton
    Messages: 1,288

    Hey that idea would work to.

    I read about a HUGE excavating company that gives weekly bonuses but theirs was based on employee production, deadlines being met and damages to equipment. Each worker was punished or rewarded the same so if Joe broke the wind shield everyone paid for it. They said it turned them from workers into managers over night, production went up and the whole attitude changed. I will try to find the article.....
  6. newhere

    newhere PlowSite.com Addict
    from Fenton
    Messages: 1,288

    I just dont want to get into employee production, that means quality will slide and i dont want my guys cutting corners. All i want is for workers to have a sense of responsibility for their actions.
  7. Rc2505

    Rc2505 PlowSite.com Addict
    Messages: 1,245

    The only way that would work is if you put every employee in brand new equipment. If something gets broke or damaged, and they are the only person that equipment is assigned to, then you know who to blame. If they are driving something today, that someone else drove yesterday, then you are going to have huge arguments, and fights on your hands. It will just plain get ugly. Maybe the Procut suggested would be the smarter way to go.
  8. jklawn&Plow

    jklawn&Plow Senior Member
    Messages: 469

    The concept is perfect but putting it in action and having it work correctly seems undoable for the above mentioned reasons," Not me" ," I duno", "the warriors did it" the list goes on and on and then they will try to take you to small claims for the stash o cash.
  9. Holland

    Holland Senior Member
    Messages: 605

    You cant expect your employees to take responsibility for your equiptment on their own dime. If you implement this i see you having to look for a new crew. I know i wouldnt work for anyone that operated that way. Its your business and your risk. You might as well just fire anyone that breaks anything because as soon as you cut his paycheck hes gonna quit. Keep working on a game plan. I think you can do better.
  10. JohnnyRoyale

    JohnnyRoyale 2000 Club Member
    Messages: 2,935

    I like the concept and what your're trying to accomplish...just uncertain if its the right way to go about it.
  11. newhere

    newhere PlowSite.com Addict
    from Fenton
    Messages: 1,288

    Maybe you guys are thinking that anytime something breaks they have to pay. Not so. If a whip dies for not explained reason, so be it. If a whip gets run over because joe forgot to put it in the trailer then he has to pay. They pay for sheer stupid not typical wear and tear. Rip a cloth bag for the mower because you were paking leaves in super tight.....no big deal. Yes you shouldn't be doing that but you were working and using your head. Tear the mower bag because you were doing wheelies on the mower you pay. Get the idea?
  12. JohnnyRoyale

    JohnnyRoyale 2000 Club Member
    Messages: 2,935

    just so I get this right...you are suggesting that particular employee will have both a maximum and a minimum wage and they will only get their maximum wage iff they dont have any stupid at fault breakdowns or mishaps...

    I'm assuming all minimums would be equal but the maximums would be dependant on skill level, position, responsibility etc... if you tied in a performance bonus structure it could be a good formula for rewarding accountable, safe, productive and happy employees.

    IMO for this to work...you should reward them for excellence.
  13. JD Dave

    JD Dave PlowSite Fanatic
    Messages: 11,032

    I'm not sure how many guys you have but it sounds like a lot of work and it leaves the potential for many disgruntled employees. Sometimes things break and your kind of going to be playing god with the money.
  14. cretebaby

    cretebaby PlowSite Veteran
    Messages: 4,162


    With the bonus it needs to equal more than 14 an hour otherwise it really isn't a bonus. Joe can just go somewhere else and make his $14 an hour.
  15. R.G.PEEL

    R.G.PEEL 2000 Club Member
    from Toronto
    Messages: 2,160

    A reward over and above their wage, as mentioned above will keep everyone in line and force them to police themselves. I think its funny if someone else goofs off, but if they goof off and it has effect on my bonus I'm going to say something.

    The proposed 'work for minimum wage and if nothing is broken you get a fair wage' scheme is garbage. Anybody that takes that deal isn't intelligent enough to negotiate their own wages properly so they aren't intelligent enough to work for me.

    This summer I had a $25/hr employee have a brainfart. He set down my stihl quick cut after cutting rebar, Got in a bobcat to pick up the rebar, and backed over the saw. It was stupid and 100% his fault. However, I went to work that day with the opportunity to make $4000 if everything went well, It didn't, I bought a new $1000 saw and made $3000. Dave had the opportunity to make $200. In his position I would not work a job with thousands of dollars equipment, me being liable for it, for $200/day it makes no sense. He has a good attitude and offered to pay, but its simply not his responsibility. Clear as that. If he continued to cost me money I'd simply fire him. Consider accounting for mistakes in your pricing, Repeat offenders get fired, not changed into good workers.
  16. PlatinumService

    PlatinumService Senior Member
    Messages: 559

    i 100% agree. ***** happens we have all goofed at one point or another. but not repeatedly. One employee could goof his one and only time and be really penalized when he/ she has bills to pay but shine in another situation and make you a ton of money and just get his/ her normal wage? these are the costs of doing business.
  17. KEC Maintaince

    KEC Maintaince Senior Member
    from N.J.
    Messages: 265

    what you could do is this tell your employees if they get any extra work you will give them a piece of the contract at a given percentage. they will be more inclined not to be so harsh on the equipment as they will need it to do the account that they got also.
  18. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    I think he's trying to make them waitresses and they have to work for their tips each week.
  19. PlatinumService

    PlatinumService Senior Member
    Messages: 559

    at a bar in calgary the bar buys the waitress fake jugs after 3 months of work as an incentive for clients and the girls. do you think a similar offer stands in this situation?
  20. newhere

    newhere PlowSite.com Addict
    from Fenton
    Messages: 1,288

    Another thing I thought about doing was paying everyone as normal, maybe a dollar less then average but setting aside a 1,000 dollar bonus twice a year. Once at the end of the green season once at the end of plow season. If you make it through the season without any stupid mistakes you get your bonus if you back into a light pole you don't get it. I'm really looking for a incentive and a way to recoup some of the money when a worker messes up and he is fired.

    If someone ran over a 1,000 dollar saw of mine your done working for me. I have higher expectations and that kind of sheer neglect is not acceptable whatsoever. You do that and your fired and you don't get your bonus. Seems fair to me.