We are a very small company and I have 1 Service Tech whom is very good at what he does, loves to be on his own, great with customers, etc. The challenge I am having is being able to produce what I believe we should be able to with our service work. For example he is currently paid hourly and what seems to be happening is he will start his hours when he leaves his house at 6:45, he will come by the shop and grab some small materials (screws, fittings, etc.), talk for a little while to me and the other guys about to head out to other projects...but his first appointment wont be until 8:30 so theres already almost two hours of unproductive labor. Also, there may be 1-2 Hour gap between appointments. An example would be a few days ago he turned in 7 hrs (from when he left his house to the time he pulled in his drive way) and there was only 3.5 Billable Hours. I am looking for possibly a commission based rate...something that would be an incentive to stock the vehicle, plan for projects etc. on his time so that he can produce as much as possoble throughout the day, in turn actually earning more for himself and the company.
This is the break down of the example.
Start 7AM
First appt start time 9AM End time: 11:15 = 2.25 Hrs
Dr's Appt from 1-2PM
Service call from 2:30-3 (1 Hour billable)
End the Day at 3PM
Total Pay Roll = 8 Hours - 1hr Dr Appt = 7hrs
Total Billable = 3.25
How is something like this typically handled as far as pay Roll Hours vs. Billable?? I understand every place can be different and all that...what have some of you experienced or currently experiencing that is or is not working for the employee as well as the company?
I realize you wanting to come up with something to 'earn more for himself and the company', because you will make more money, but the fact of the matter is that's not likely to happen.
If you want to be fair, then pay fair. It's not all that rough.
No pay for portal to portal, that is from home to work and from work to home, so long as both spots remain the same. IOW, work starts at the shop, not at a customers site, or the supply house. That means no stopping on the way to the shop to get parts or look at a job.
Tech gets paid from his clock in times.
All work done for the company gets paid for because that will be done 'on the clock'.
If you want to provide an incentive, make the 'on the clock' hours a base rate. Add a few bucks for every hour billed. An example would be 25 bucks an hour plus 5 dollars an hour for every hour billed to the customer.
One thing I can assure you is that if you cut your employees pay, not matter how elegant or creative the means appears, it will cause bad blood between you and the employee.
I have been there. Many years ago I worked at a small business that made eyeglasses. Their bonus / breakage plan was set up and worked well, then they got real busy and my pay actually got less the busier the department got. I was making 2 - 3 times the amount of lenses, but working for about 80 percent of my previous pay. The FIRST thing on my mind when I got a short check was an exit strategy. The exit came shortly after.