You have sat in class after class, talked to other
yard owners about switching over to paying employees for performance,
and you are still paying them hourly, thinking all your employees
will walk out or might cause chaos in the business.
Yes, just like you I was slow to change to pay
for performance. I had all the excuses you are making, all the
reasons why I should not disrupt my employees, because they were
giving me all they had, but was I wrong! I still remember the
day Keith and I changed to a pay for performance system for our
employees... In 1998 our delivery driver was having trouble making
all the stops. What we found out was he was going to his girlfriend’s
house and taking naps and we were paying him for it! We changed
his hourly pay immediately to pay for performance (pay per stop),
and this caused an eruption with him, he quit but we kept going
and hired someone else with the new pay plan, and have never looked
back. The new person thought it was great, as they didn’t
have the “baggage” of the former employee.
So why risk the change? As owners we have faith
in our employees. We do not follow them around to see if they
are spending their time efficiently or wasting our money. Instead
of monitoring their work, we give them raises and hire more employees
because, “they just can’t get it done.” If you
are paying your employees hourly, take a day and just follow them
around you will be surprised at how much they don’t do.
The benefits of pay for performance will increase
your bottom line. How? It reduces the number of employees while
increasing productivity. Pay for performance will weed out the
under performers, and will amaze you with what your strong employees
are capable of handling.
The driver must keep accurate records for delivery
time, miles, etc.
Drivers will generally have to load and unload
trucks. We have helped many yards with pay for performance, including
dismantlers, parts pullers, drivers, and salespersons. In fact,
its one of the most rewarding items we teach owners, over and
over, site by site. It’s not unusual to see clients get
our fees back in a week or less with the changes they implement.