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Employee Stand By Pay Help Please

Discussion in 'Business Fundamentals' started by JohnnyRoyale, Sep 5, 2008.

  1. JohnnyRoyale

    JohnnyRoyale 2000 Club Member
    Messages: 2,935

    Just curious to know what systems you guys have in place for employee stand by pay during the winter months. What has worked best for you and what carrots have you dangled to make sure they show up every night when needed?
  2. TCLA

    TCLA 2000 Club Member
    Messages: 2,707

    Not sure what you mean by "stand by pay". We pay our employees their hourly overtime rate for all snow work performed. So if they only work, lets say 25 hours a week, they are getting almost a full week's pay. Some weeks are feast, some are famine.
  3. JohnnyRoyale

    JohnnyRoyale 2000 Club Member
    Messages: 2,935

    Stand by pay refers to a weekly minimum we would pay our font line on-call staff to be at our beckoned call. I too have increased hourly rates for the winter.

    A famine situation does nobody any good-and creates problems. I have heard of some guys not being able to get a hold of their drivers or walk guys because they were trying to live through a famine spell, and couldnt afford their phone bills.

    Now keep in mind we dont do any pay per push type of plowing, money is always coming in, as all our work is all fixed contract, paid monthly.

    We have some employees that only work for us in the winter. They get paid a fixed daily rate to be on stand by, plus an hourly rate when they work, and a monthly bonus for coming in everytime when called. They will only get their standby pay after they have come in for a shift, and failing to come in forfeits their stanby pay, and any monthly bonus they would be entitled to.

    Others (year round guys) are on year round salary, so it doenst really matter. .

    Just wondering how others are paying thier front line guys during the winter-thats all.
  4. Camden

    Camden PlowSite Fanatic
    Messages: 6,604

    JD Dave explained to me how he does things with regards to his employees and it sounds like he's really got his ducks in a row. Perhaps he'll see this and respond but if not shoot him a PM.
  5. iceyman

    iceyman 2000 Club Member
    Messages: 2,925

    i think JD is actually working right now and its not winter:dizzy:
  6. JohnnyRoyale

    JohnnyRoyale 2000 Club Member
    Messages: 2,935

    He's around here somewhere...
  7. Neige

    Neige Sponsor
    Messages: 2,215

    The way we do it, is to determine their winter pay in advance. We take that amount and divide it by 28 weeks. Now they have a guaranteed pay per week. Regardless of what happens thats their pay for the week. It starts Nov. 1st and goes till end of April. If they should miss then they lose thats week pay + what I paid someone else to replace them. This has worked very well for us. Its very straight forward, and the guys have a weekly pay they can count on. Our policy never miss more than once, or your gone.

    Example my best guys. $8,000.00 for the season divided by 28 weeks = $285.00
    So some weeks no snow falls they get $285.00.
    Then one week snow falls 3 times and they work 30 hrs they still get $285.00

    Now you missed work once in that 3 time week. You are out $285.00 + the 10 hrs I paid someone to replace you. I must say guys rarely miss. There are some exceptions.
    Like a birth of a child, or a funeral etc.

    This has worked for us for a long time. Most of the guys who work for me, have been doing so 10+ years.
  8. JohnnyRoyale

    JohnnyRoyale 2000 Club Member
    Messages: 2,935

    Is that a random number you came up with or an actual number from experience? BTW-nice fleet of tractors,do you have a bigger pic of them lined up you can post?
  9. Neige

    Neige Sponsor
    Messages: 2,215

    That was real numbers I posted. I will see what I can do with the pics.
  10. Neige

    Neige Sponsor
    Messages: 2,215

    here goes with the pics.

    Snow equipment 20.jpg

    Snow equipment 020.jpg

    Snow equipment 21.jpg
  11. Camden

    Camden PlowSite Fanatic
    Messages: 6,604

    You sure have some nice equipment, Paul. Here's to hoping it gets a lot of use this winter :drinkup:
  12. bribrius

    bribrius PlowSite.com Addict
    Messages: 1,609

    that looks oddly familiar. where is that exactly in the pic?
  13. cretebaby

    cretebaby PlowSite Veteran
    Messages: 4,162

    glad u asked i didnt want
  14. Rcgm

    Rcgm Senior Member
    Messages: 613

    WOW I would hope it never snowed if that is what I made.:D

  15. JD Dave

    JD Dave PlowSite Fanatic
    Messages: 11,194

    Wow nice pic Paul, all that orange and blue hopefully will make you lots of green this winter.:drinkup:
  16. JohnnyRoyale

    JohnnyRoyale 2000 Club Member
    Messages: 2,935

    Mother of snowblower God! Very Nice.
  17. Bossman 92

    Bossman 92 PlowSite.com Addict
    Messages: 1,771

    Somehow my 3 trucks don't look near as impressive! Great pics!

  18. Neige

    Neige Sponsor
    Messages: 2,215

    Thanks guys, Its a lot of work, but I love it. Here's to making some more green this coming season :drinkup:
  19. elite1msmith

    elite1msmith 2000 Club Member
    from chicago
    Messages: 2,762

    I use the "bonus program" they get an hourly rate, depending its around 17 or so

    then they get a $500. dollar bonus plus $3 dollars extra for every hour that they worked that month.

    heres the catch... if they cant show up, it is THEIR JOB to call and find a replacement, with in 2 hours of starting the routes.... if no one shows up in there place, then he losses alll the money that month. if it is just a shovler, then i dont really care, but those guys that plow or use equiptment, i must know, and train them ahead of time....

    so what happens is ... i have a guy PAT , who works for me, in another month we will do snow training, which pat will come to.... pat will also bring like 4 of his friends, .....just so they can get trained on the equiptment that he uses,,, i will make them all drive it, so i can see how there skills are... most are good enough to except , some i have to tell Pat , not to bring back. Normally when they do call in , the replacement will get switched over to a small tractor , or hand shovel anyway... no amatures in my trucks

    other things that im adding this year, included turning in all papper work in 48hrs... that includes all receipts, and the CC i keep in all the trucks better balance out....bring the trucks back clean inside... stuff like that
    Last edited: Sep 6, 2008
  20. Neige

    Neige Sponsor
    Messages: 2,215

    The 500 bonus, can be earned on how many months? What is the average hrs a good employee will work during the winter?