As the season slows down, it’s a great time to re-evaluate your pay system for your employees.
Piecework is becoming a favorite new way to pay employees, and there are a lot of great reasons for it.
If you’re on the fence about paying your employees piecework instead of hourly, don’t take our word for it; Here are some of the fantastic results that our customers got after they switched to the piecework system.
What Our Customers Think About Piecework Rate Pay
“I find that paying on a commission basis for mowing/trimming works well with my small crews. Paying per piece has improved performance and eliminated the lollygaggers since all the guys/gals on the crew are paid this way.“
“We switched to a piece rate pay system, and we have doubled our margins. In the process, I have been able to bill out an additional 36 man hours per week per mowing crew with the efficiencies gained. This is without adding any additional employees or equipment on these crews.
Since implementation, the whole culture of the company has changed, and my “babysitting” has almost all disappeared! Outside of peak sales seasons, I am working 4 hours a day… I have also removed 10-12 hours of physical labor that I used to perform myself every week from last year. Also, I hired an admin 15-20 hours a week, rented an office, and gave myself a 10k raise and have still doubled my profit this year even after taking a 10k loss in July with the drought. So yes, anything that I can do to help show people the value of KNOWING YOUR NUMBERS and having SYSTEMS in place is the least I can do for turning me on to the piece rate system.”
“The crew leaders don’t want certain helpers on their crew. This is a huge change from earlier in the year when I paid them hourly. They didn’t seem to care who they worked with or what equipment they used. Upon my announcement to revert to a percentage (this is how we had paid in the past also) the guys suddenly wanted new equipment, different guys, etc. We track their hours as well, and the funny thing is that ever since we went back to a percentage, our payroll has gone down, they still make more than they would hourly, and we have fewer customer complaints (I don’t pay for do-overs).”
Gilbert Landscaping, Inc.
“Last year I had forty lawns, and I thought that was big after two years of being in business. Now, life is a little different, I have one goal, and that is $45.00 per hour, per man. That’s all; the jobs are coming in because I’ve had 85% of my time to concentrate on sales.
My guys are on piecework. When I wrote their paychecks the first time, I was nervous that I was giving away the farm, but I didn’t realize the headway they made the prior week. They did more than I could ever do because they are only focused on one thing, getting the work done.
They don’t want me on the job because they lose money if I show up. The equipment costs are way down because they don’t want to break anything because they will lose money if they can’t continue.”
R and D Landscaping, LLC
Piecework can help you boost your efficiency, minimize downtime, keep equipment in excellent condition, and much more. Let us know if you need some help trying it out today or learn more in Dave Tucker’s book, “Lawn Maintenance Piecework and the Beautiful Business.”
If you’re ready to start the process, see this post with step by step instructions on how to introduce it to your crews. You can change your regular employees to piecework employees.
If you still have some doubts to overcome, see this post on the typical reasons people reject piecework and how to overcome them.