How do you start with piecework? What if you have jobs that won’t work with piecework? Dave goes over how to implement piecework for landscape and lawn maintenance companies.
What Exactly is Piecework?
Piecework simply boils down to work paid for according to the amount produced. For instance, instead of paying an employee hourly you pay them a set fee per job.
What are some of the benefits to piecework?
Firstly, you’ll see that your employees are more efficient. Employees won’t be trying to stretch out jobs to earn overtime.
Secondly, being more efficient means that everyone will make more money as well. Getting jobs done faster improves the bottom line!
Lastly, using piecework will free you, the owner, up to do more important jobs. You won’t need to do as much babysitting anymore. Therefore, you can concentrate on growing the business.
Tips on How To Get Started
We wrote about it a bit during our latest Piecework series. Remember, you are the owner, therefore you take the risk. Making a smooth transition can help ease employee fears.
Guarantee the greater of the two checks for a set amount of time. That way, the employees will see that piecework is paying them more than straight time.
Remember to always check the labor laws in your specific area. These laws vary greatly by location. For instance, some states require that you pay for windshield time or pay more for overtime.
You can easily set up man hours per job in your CLIP software. Doing so can help you predict wages for the week based on the jobs you have scheduled. Your crews will know their earning potential for the week as well.
Spending more time on the job doesn’t always equate to better quality. Skill equates to quality.
Remember we talked about babysitting at the top of this article? Once employees start thinking like you, they will make wise decisions on quality. This will cut down on spending time and labor redoing sub-par work.
Does Paying This Way Really Keep Your Best Employees?
The short and sweet answer is a resounding YES!
How many employees have you lost because they think they can do the job better on their own? Do you have employees who are frustrated with workers not pulling their share?
If you said yes to the above questions, then piecework is going to help change that.
This system allows your guys to create their own companies inside of yours. Employees will begin to understand that they make money when you make money.
Using reports inside CLIP, such as the employee efficiency report, allow you and the employee to see their true earning potential. Make sure you are recording times when marking work done!
Stop Wasting Time and Make Piecework Work For You
If you have realized that you spend more of your day cracking the whip and checking on your crews than growing your business, piecework is for you.
Work with your teams to make a smooth transition and you’ll see the profits grow, along with morale and quality. In addition, free yourself up to spend more time in marketing and prospecting to keep your business expanding.