I posted this in another forum and was wondering if any other CONTRACTORS had similar experiences or success stories. With all due respect I have had an earful of what ?people on the receiving end? think of bonuses. How about some of you contractors?
Company Bonuses
- Thread starter ITO
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sundowner
Senior Member
- Location
- West Wisconsin
Bonuses
Bonuses
ITO
In the past I've worked for huge EC's and mom and pop contractors, had bonuses in the past for high end work that really went well, from a GC I've never once met. I was always more touched when the owner of a small shop drove out to personally thank me and my crew, pressed some palms, looked me and the guys in the eye and said He just got off the phone with the last big customer and they ecstatic about the work. And they have a lot more, same guys as last time.
My point is sometimes a simple thank you for a job well done means more to me than a check for a couple hundred bucks. My wife would argue this, but when your a craftsman, it is really nice to hear sometimes, a little appreciation, I guess my ego likes validation.
Just my 2 cents
Steve
Bonuses
ITO
In the past I've worked for huge EC's and mom and pop contractors, had bonuses in the past for high end work that really went well, from a GC I've never once met. I was always more touched when the owner of a small shop drove out to personally thank me and my crew, pressed some palms, looked me and the guys in the eye and said He just got off the phone with the last big customer and they ecstatic about the work. And they have a lot more, same guys as last time.
My point is sometimes a simple thank you for a job well done means more to me than a check for a couple hundred bucks. My wife would argue this, but when your a craftsman, it is really nice to hear sometimes, a little appreciation, I guess my ego likes validation.
Just my 2 cents
Steve
JohnE
Senior Member
- Location
- Milford, MA
When I had fewer employees, I would give a bonus in the summer when things were going well. Last one was for two grand. But in retrospect, I agree with the quote in the OP. That's not to say I won't give bonuses again. But I do see how some people quickly come to expect it.
dezwitinc
Senior Member
- Location
- Delray Beach, FL
Bonuses
Bonuses
We provide extras to our employees in the form of outings for families, fishing trips for electricians, tool sets, paid for seminars, education, etc.
We have just instituted a bonus program that pays cash for the safety records of employees.
I don't know that job performance based bonuses work as well as these due to the fact that everyone thinks they deserve more than the next guy or more than they received.
The safety record of an employee is easy to quantify and keep track of.
If you have any other creative ideas for providing bonuses, please post them.
Bonuses
We provide extras to our employees in the form of outings for families, fishing trips for electricians, tool sets, paid for seminars, education, etc.
We have just instituted a bonus program that pays cash for the safety records of employees.
I don't know that job performance based bonuses work as well as these due to the fact that everyone thinks they deserve more than the next guy or more than they received.
The safety record of an employee is easy to quantify and keep track of.
If you have any other creative ideas for providing bonuses, please post them.
got_nailed
Member
When I was doing T&G hard wood floors I got bonuses for safety and being to work on time every day.
When I was bidding jobs I would bonuses for upgrading to better quality products that were faster to install. Giving them all the needed information (more than they should know) to feel them out to see if it would not be a job that we wanted to do (owners up you?re as- all day).
I think my best year working for him I made $42,000 + $3,000 for bonuses (we had no benefits).
I do think that if you do a bonus system that it needs to be typed out very well to cover you?re as- when they think they should get one and you don?t (and have it posted for all to see).
When I was bidding jobs I would bonuses for upgrading to better quality products that were faster to install. Giving them all the needed information (more than they should know) to feel them out to see if it would not be a job that we wanted to do (owners up you?re as- all day).
I think my best year working for him I made $42,000 + $3,000 for bonuses (we had no benefits).
I do think that if you do a bonus system that it needs to be typed out very well to cover you?re as- when they think they should get one and you don?t (and have it posted for all to see).
chris kennedy
Senior Member
- Location
- Miami Fla.
- Occupation
- 60 yr old tool twisting electrician
ITO said:
How about an eyeful?
I'm just an employee. I'm promised bonuses I never see. I'm promised a lot of things I never see.
I'm very happy and very comfortable where I work. I'm a loner and don't really fit in with the other kids.
I work for an honest man that has too much going on. If I bring in the money with few calls bothering the owner, he won't bother me.
I don't believe you could change my input or output with the promise of a bonus.
I never got a bonus, I think the Top mechanic with the company got $200 last year, He no longer works there after 22 years. I know longer work there. One of the things I liked was when we came under labor hours and my supervisor was so happy he was tripping over his own feet and studdering his words when he come to thank us. He would give us the labor hours for each job, usually 5 day jobs. We would try to be under those labor hours (Imagen that). Kinda made goals for us. We got lots of thanks, but know money. Mean while back at the shop the owners daughter just got back from her nice trip to Europe. I bet if we asked nicely we could all watch the vacation video. oh after work hours of course.
cadpoint
Senior Member
- Location
- Durham, NC
I think you answered your own question ! 
Originally Posted by ... ITO
.....
Seriously, I get more mileage out of company sponsored fishing trips, summer BBQs, company hats, jackets, novelty stuff than when I give out a cash bonus.
I have had it, it looks like its time to turn that tap off, but the problem is once you start, how do you stop? ....
Theres tons of employee moral building tecnic's on the internet !
I do remember one article based on your statement here : ITO
"Then it becomes some kind of entitlement and some guys start demanding a bonus, or bickering about ..."
Basically, it stated that once you did start something that it was hard to stop, due to employees expecting it.
It funny only in that last few years have the Area Employers opened up the wallet for Christmas/summer parties, Etc... maybe thats only due to
new souls to the area ... and man are they shocked at the going rates.
Good Luck with all that.
Originally Posted by ... ITO
.....
Seriously, I get more mileage out of company sponsored fishing trips, summer BBQs, company hats, jackets, novelty stuff than when I give out a cash bonus.
I have had it, it looks like its time to turn that tap off, but the problem is once you start, how do you stop? ....
Theres tons of employee moral building tecnic's on the internet !
I do remember one article based on your statement here : ITO
"Then it becomes some kind of entitlement and some guys start demanding a bonus, or bickering about ..."
Basically, it stated that once you did start something that it was hard to stop, due to employees expecting it.
It funny only in that last few years have the Area Employers opened up the wallet for Christmas/summer parties, Etc... maybe thats only due to
new souls to the area ... and man are they shocked at the going rates.
Good Luck with all that.
bikeindy
Senior Member
- Location
- Indianapolis IN
khixxx said:
Yeah the owner who takes all the risk and finds work for you so you can earn a living shouldn't send his daughter on a trip to Europe or do other things for his family. He should just be thinking of you and your co-workers how you "deserve" more than you agreed to work for just because you produced at top level.
I give out bonuses when I feel like it and raises when they are deserved.
bikeindy said:
You don't even make sense quoting my post. I never wanted a bonus. $2k for a bonus?? thats nothing. I explained that I got more job satisfaction from my supervisor being happy. Not giving a bonus and sending your daughter to Europe brings low moral to a company. Personally I don't care what the company did, it was the other guys that would complain and I would have to hear it. I guess that is why I don't work for a business that is family oriented. I left employment for more money, not for a bonus. If my supervisor got a bonus from my work performance then great. He treated me like gold.
bikeindy
Senior Member
- Location
- Indianapolis IN
khixxx said:
HOW? I don't follow your line of thinking. The owner makes more money than the guys working for him ergo he can send his daughter where ever he wants.
LawnGuyLandSparky
Senior Member
bikeindy said:
Therein lies the problem. I don't want to turn this discussion into a labor -vs- management war, but someone else started it...
When an owner is the sole decision maker on bonuses and raises, and the employee is in a take-it-or-leave-it position, you can bet that more often than not the definition of "deserve" changes drastically.
Further, bonuses for safety are, IMHO, just a way of bribing employees to NOT report accidents. This saves, therefore makes money.
No matter what business you're engaged in and no matter what capacity, the #1 purpose for every business is to make money. Everything else, despite what the company policy reads or what the safety posters say, is secondary.
JohnJ0906
Senior Member
- Location
- Baltimore, MD
I would appreciate a simple "Thank you, John. You're doing a great job!" every now and then. It goes further than you might think.
Can't remember the last time the owner or VP said that to me. That's why (more than any other reason) I am looking for a different employer.
Can't remember the last time the owner or VP said that to me. That's why (more than any other reason) I am looking for a different employer.
LawnGuyLandSparky said:
I totally agree with this.
True incident: I had an extension ladder fall and strike my wrist very forcefully. Although I wasn't seriously or permanently injured, it hurt like he11 for some time. Company policy stated that in order for me to collect future compensation for any possible injury, I must report it, so I did. Even though the worst that happened was that my wrist hurt the rest of the day (nothing broken, etc.) I was considered a "scum-bag", a "low-life", "someone who didn't care about his co-workers".... just because I reported the incident [to protect myself]. Everyone on the job that week lost their Safety Incentive Bonus.
I was ostracized for several weeks because of this.
bikeindy said:
The owner can do what ever he wants, I am just saying that people see that other people have more than they do and start complaining. I never seen the owner of my company. I think I seen him 3 times in 3 years. I went to the company on prevailing wage jobs, once those ran out I was back to a crap pay. The last company I did work for the CEO is up for a $20 million dollar bonus. yeah that makes for a shop to have low moral. They get a 3% raise then the company jacks up the health and takes things away thus creating a low moral situation. Hey the CEO is happy
He deserves it, Company now has $1 billion in reserves (Entergy). The bottom line is that a leader, owner, or a managers job is to motivate people. With money, Picnics, tickets to a nascar event, or just leaving someone alone. Their are guys out there like me that value a persons character and personality, I don't wake up every day to deal with some guy beating his gums. Then the guy tries to win you over by giving you food, Dang I will go down to sheetz and get food if I wanted it, I don't live in poverty.
- Location
- Windsor, CO NEC: 2017
- Occupation
- Service Manager
I agree with the both of you.bikeindy said:
Last place I was at, the owner tended to manipulate employees to try to coax more productivity out of his people. One year, he wrung his hands and spoke in nervous tones at a company meeting about how business was so slow, and we were all darned lucky to have jobs, and all that business.
He went on to say that he personally had not taken a paycheck in over six months - that's how dire things supposedly were, and he was sacrificing for the benefit of the company, to keep us employed.
Two weeks later, he flew himself, wife, his four kids and their spouses and children to Disneyland (or whichever one is in Florida) for two weeks. Pretty much, the entire shop lifted off it's foundation as though someone stuck dynamite under it, like in a cartoon.
My personal opinion is, the owner takes the risks, and therefore deserves the spoils - but there is nothing to be gained in lying to the employees in some state of affairs speech and bringing the owner's personal life into the picture. Hypocrisy is a morale killer - it's better to say nothing at all (period), take the vacations and enjoy the money as opposed to pretending you're on the verge of homelessness to try to spur the troops.
That backfired.
Turning back to the original post, I agree with your sentiment. It angers me to hear the sense of entitlement people tend to get after forgetting that a bonus is never a guarantee.
Edit to add: From this employee's perspective, you should implement a bonus program, but make it darn clear that it is your money to give away as you see fit. Work it into your interview process with new employees that you base bonuses on what you see, and there may be some 'invisible' employees out there who do not make their presence known in the company, and therefore may not receive as substantial of bonuses as others do.
Bonuses are one component of management, they are not the end-all answer to it. Diligence is required on your part to quantify an employee's contribution to your company to the best of your ability, and try to reward based on the qualities you want to reward.
JMO,
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georgestolz said:
Correct you are!
How many of you can come up with the correct definition of the word 'profit'?
Give it a try.
Really. Try writing it down.
Google the word, and you'll most likely come up with the same thing you're thinking right now.
Here's what the 'common' definition of profit would end up being:
Profit: What's left over after the bills are paid. Income that exceeds expenses. Assets that are greater than liabilities.
My definition of profit?
Profit: An enteprenuers' reward for taking a financial risk.
In other words, the rank-and-file workers have very little invested in the company compared to the boss. At worst, they could lose one or two weeks pay if the company goes belly-up. But the owner(s), who have invested their savings, their tools, their inventory, their vehicles.... well, that's all on the line every day.
petersonra
Senior Member
- Location
- Northern illinois
- Occupation
- engineer
My opinion is that the main reason bonus programs fail is because they are often based on subjective rather than objective factors.
It is very hard for Joe to see Fred get a big bonus mostly because Fred is a big suck up. That kind of bonus will not encourage either Fred or Joe to work any better.
Attendance awards are about as objective as you can get. You were either there on time or not.
It is very hard for Joe to see Fred get a big bonus mostly because Fred is a big suck up. That kind of bonus will not encourage either Fred or Joe to work any better.
Attendance awards are about as objective as you can get. You were either there on time or not.
bikeindy
Senior Member
- Location
- Indianapolis IN
petersonra said:
I don't understand why people think that there should be bonuses at all really. here is how I see bonuses and why I don't give many out and will tell you when and why I do. When you hire in at a job you agree to a wage and then you work however many hours a week at that wage and get paid. a bonus for showing up for work or doing it safely is retarded in thought altogether to me. you explained your experience to your employer he figured what that was worth to him and made an offer to a wage and you excepted it. If you show up, do your job to the level you are being paid you can stay there forever as far as I am concerned but normally with time people improve and work better smarter and more efficiently and DESERVE more money. I don't believe in "accidents" incidents are caused and they happen to the best of us, with care you will not be injured and that is to your best interest more than the owner since you can be replaced. I would never tell my guys that I bid a job for X hours and if they get it done in less time they will get a bonus. I think this promotes unsafe work habits or short cutting. If work is regularly getting accomplished in less time than I bid it at they will get a raise which will affect their income permanently not temporarily. Christmas bonuses are paid to people who are already underpaid in my opinion and that is just wrong. I pay Christmas bonuses out based on an individuals production during the year before a raise. So if you were completing work very timely and regularly for some time and I determined you deserved a raise you get that raise now but what about the retro-pay that you wont see in that raise since while you were worth Y but being paid X, I save that for Christmas. That being said I have worked for many different employers and know that when I needed a bonus or felt I deserved one it was because I was already underpaid. Now I make my own way in this thing and what I make is truly determined by what I do.
quality people need to know they're valued.
quality people need to know they're valued.
BikeIndy,
I'd be curious to know what your turnover rate is, or if you even care?
When working for other people, I ALWAYS made it a point to be the best I could be and ALWAYS the best on each job. I would work harder then my fellow employees, smarter then them, take only my alotted break time even if they ridiculed me for it. I wanted to stand out. I wanted to be noticed.
Unfortunatley, and very rarely does that ever happen. In a recent article in Electrical Contractor Mag. they talk about ridicule fromm " lesser " employees and a lack of management validation as the number one cause for turnover.
I never got any recognition for my extra effort. The employee/employer contract is 8 for 8. If you have a good man, you take care of him because they are increaingly more difficult to find.
Now that I'm on my own, It's my single biggest problem. I can't find quality help.
It blows my mind that established companies can be so disimissive of their help and treat them as if their replaceable. One good man can be, but if you lost 3,4 or more you'd be in trouble, you have to admit it.
The single biggest incentive I got/get is to cover time. If something happens and my guy has to scoot out a little early or take a long lunch, I don't usually question it. It has built a sense of loyalty to my guy that I actually care about him and his wellbeing. People budget based on a full paycheck and when their kid gets sick or their wife locks herself out of the house, losing a hour can hurt.
As far as the financial risk/reward? How much did you actually come up to start your business? You may have hundreds of thousands tied up now but that is all money you made from the business. How much did you actually put up out of your pocket years ago? I bet it wasn't all that much.
I started with $3,000 in tools and another $5,000 in the bank .
We have to remember not to think too much of ourselves and remember how blessed we truly are for being the success stories.
quality people need to know they're valued.
BikeIndy,
I'd be curious to know what your turnover rate is, or if you even care?
When working for other people, I ALWAYS made it a point to be the best I could be and ALWAYS the best on each job. I would work harder then my fellow employees, smarter then them, take only my alotted break time even if they ridiculed me for it. I wanted to stand out. I wanted to be noticed.
Unfortunatley, and very rarely does that ever happen. In a recent article in Electrical Contractor Mag. they talk about ridicule fromm " lesser " employees and a lack of management validation as the number one cause for turnover.
I never got any recognition for my extra effort. The employee/employer contract is 8 for 8. If you have a good man, you take care of him because they are increaingly more difficult to find.
Now that I'm on my own, It's my single biggest problem. I can't find quality help.
It blows my mind that established companies can be so disimissive of their help and treat them as if their replaceable. One good man can be, but if you lost 3,4 or more you'd be in trouble, you have to admit it.
The single biggest incentive I got/get is to cover time. If something happens and my guy has to scoot out a little early or take a long lunch, I don't usually question it. It has built a sense of loyalty to my guy that I actually care about him and his wellbeing. People budget based on a full paycheck and when their kid gets sick or their wife locks herself out of the house, losing a hour can hurt.
As far as the financial risk/reward? How much did you actually come up to start your business? You may have hundreds of thousands tied up now but that is all money you made from the business. How much did you actually put up out of your pocket years ago? I bet it wasn't all that much.
I started with $3,000 in tools and another $5,000 in the bank .
We have to remember not to think too much of ourselves and remember how blessed we truly are for being the success stories.
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