Employee Production

I am curious about what you expect from your employees as far as revenue produced each day? I realize there are many variables, but if you have a team of 2 go out to do commercial jobs with maybe a total of 2 hrs driving all day going stop to stop all ground work and some pole work how much do you expect to be completed dollar wise.

Minimum $600.00

I don’t always reach this mark, but I expect my employees to produce three times as much as I pay them. If I pay them $100.00 for a job, I expect $300.00

I work alone and $300 is about right for an 8 hour day, if I work 8 hours.
A friend of mine expects $300 a day per guy as well. I have seen people here quote much higher production rates.
I’d sure like to see them work. :cool:
Is it higher rates or higher production?

It depends on area. Some people have routes that produce much higher because they are close together others have higher paying jobs or less competition.

We have ceratinly done higher than that, but about 300 a man is a good minimum for commercial route work. Now residential probably higher.

I agree 300 per full day per cleaner. Now of course that is if they arent brand new. When they are new they should be able to handle 200-250 a day pretty soon and few months in 300 shouldnt be a problem. If your guys arent producing atleast 250-300 in 8 hours either your routes are spaced out a bit much or you might want to start bidding a little higher, but this is just my opinion.

I know that this might fuel a debate but I pay commission at 30% per guy. Keeps everthing in check. A few on here talk about the 33-33-33 rule- 33% labor, 33% profit, 33% taxes. Run your guys gross sales for the day minus what you pay them and that will give you a no bones figure that wont lie. 2 years ago I ran figures with two guys (Commission and an hourly college kid- team). They were coming in at near 40% on labor-BAD. I sat down with them and told them that it was unacceptable. Too much milking the clock. Late starts, sitting in fastfood restaurants eating (I dont pay for lunch BTW). It put them on notice and things IMPROVED virtually over night. I have learned my lesson paying commission & hourly together- Havent done it since.

Run the figures. You will see. Gross sales dont lie!

Steve

There is nothing wrong with paying commission and you certainly can keep a better handle on expenditures. Many people associate commision with independent contractor. The two have nothing to with each other. You can be paid commission and be an employee. Just make sure that you are covered with your friendly state and federal IRS.

[COLOR=black][FONT=Verdana][COLOR=black][FONT=Verdana]As long as commission is at least minimum wage it is OK. In Massachusetts paying commission can be a problem if there is over time. The big carpet cleaning company I was a salesman for had the crew punch in and punch out. No over time was allowed for legal reasons. The guys hustled and made good money with no over time. The trainees were payed hourly.[/FONT][/COLOR]
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My guys are 100% commission based pay. They arent subs. When I switched over from hourly to commission, all of the guys were for it but 1. If your jobs are bid correctly, your commission guys will make good money. If they are not, you will hear them whine and bitch. Its really great how much commission has changed my business in a more profitable one. I easily identified which jobs were “way under bidded” to the ones that are killer profitable. I raised the rates or got rid of the ones that werent showing the numbers we needed to get. It has made my biz more profitable hands down.

Steve

Great response guys! Thanks for all the input Ive been figuring a $1 a minute and if I can do a pane of glass 1 side in a minute thats 60 an hr if the pane is bigger than my wingspan it counts as 2. Inside windows are a different story. So if the guys can generate that at each stop then with drive time 60 an hr will drop to about the 37.5 an hr you all are shooting for. Does that sound in the ball park. your comments are invited!

You got that right. Heck the NET won’t lie either. One day you have $100 in your pocket, the next day the guys drag ass and you have $70 in your pocket. That will light a fire under a butt to get things in order.

When I worked for a company I was on commission. I could not imagine hourly.

Go spend 4 hours on a building or house and make $60 or $80? no thanks.

Plus my skill set was far superior to most of my co-workers. Get paid what your worth I say.

Amen Paul. I couldnt handle the stress of guys on hourly. Some tend to take thier sweet time on commission as it is. I will sometimes joke with them about going back to hourly and they all say they will quit on me:D If the truth be known, I would probably go outta business if I switched back:D

Steve