Key Takeaways
The Lowdown
Rework your employee’s compensation (and culture) to reward extra effort while also holding them accountable for ‘avoidable mistakes’.
What are employee incentive plans, and how can they benefit my residential service business?
Employee incentive plans, like a two-tier pay plan, can attract top talent by offering above-average starting wages and motivate staff through a Worker Efficiency Bonus. This boosts overall productivity.
How does an above-average starting wage help in attracting top trade talent?
Offering an above-average starting wage makes your job openings more appealing to skilled candidates. This increases the likelihood of hiring experienced professionals who can enhance your technical service quality.
What is a Worker Efficiency Bonus, and how does it motivate staff?
A Worker Efficiency Bonus rewards employees for high performance, encouraging them to maximize their earnings while being accountable for their work. This in turn, fosters a motivated and productive workforce.
How can I ensure the stability and legality of my employee incentive plans?
Ensure your plans undergo legal review and are transparent to build long-term trust among employees, preventing frustration and promoting a positive workplace service culture.
Outline
Introduction – Good People Want a Challenge
Tired of the constant turnover and lackluster performance in your residential service business? It’s time to rethink your employee compensation strategy. By implementing effective employee incentive plans, you can attract top talent, boost productivity, and create a more engaged workforce. In this article, we’ll explore how to design and implement incentive plans that will motivate your team and drive your business forward.
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Home Services Are Competing for Employees
The definition of “compete”: “trying to get something others are also trying to get!”
“Ummm, thanks Steve but my middle name is ‘Compete’.😁 I’m getting my competition’s customers like crazy! So, I’m also getting their profits too! WOO-HOO!”
CONGRATULATIONS, ‘Compete’! However, in today’s brutal hiring environment you must ‘differentiate’ yourself from 1000’s of competing employers to successfully compete for- GREAT EMPLOYEES! But fear not, help is on the way…
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HINT: Start competing for great employees by offering an ‘above average’ starting wage. 19th century mail order entrepreneur L.L. Bean famously stated, “I’ve learned if I pay a man 20% more than he can get elsewhere I’ll ATTRACT and keep employees that are 40% better!” But to truly differentiate yourself from competing employers…
Use Incentive Compensation Programs
“Sell the sizzle, not the steak!” Elmer Wheeler, 1925
NOTE: Want to build a Critical Mass Business that will run smoothly without you?🤔 Then don’t settle for less than the ‘Very Best’ people for your business team!💖 This means you should use employee incentive plans by …
Offering a ‘Two Tier Compensation Plan’ based on 1) the steak AND 2) the SIZZLE!
Tier One: Steak- You’re going to offer your Career Candidates ‘steak’ with your higher than average wages. But now entice even better applicants with your…
Tier Two: Sizzle! Here’s your magic ‘Sizzle Phrase’: “Earn up to $____ extra per week with our ‘Worker Efficiency Bonus’ Plan!” Trust me- now you’ll have your prospective employee’s attention!👌
YOU: “What’s a ‘Worker Efficiency Bonus’ (WEB) Plan, Steve?”
ME: “Simple! A ‘WEB’ Plan is a system (and culture) that A) holds your workers ACCOUNTABLE when they mess up but also B) REWARDS an employee when he or she created extra profits for your company.”
YOU: “Hmmmm… that sounds just like me as an entrepreneur! I make money OR lose money based on my initiative, efforts and/or (ugh) sometimes my boneheaded blunders!😲
ME: “EXACTLY! The creative ‘fun energy’ (and profits for ALL) is incredible when everyone works together as a team! And ‘Very Best People’ love the power of increasing their own paycheck! This concept transformed my Residential Services Business!”👍👍
WARNING: Before changing an existing compensation plan or implementing employee incentive plans be sure to A) seek legal counsel to verify that your planned strategy is legal plus B) ponder deeply if your plan is workable and will achieve your desired results. (Employees hate their pay constantly being impulsively ‘tweaked’ by management.) Here are some general examples.
So, let’s talk soon! Right now why don’t you start a list of what YOUR new ‘Worker Efficiency Bonus’ Plan should include?
Summary – Know Your Service Team, Give Them a Game
So, are you ready to make your home services business into a real growing small business? By implementing effective employee incentive plans, you can create a motivated and high-performing team. Remember, the key is to design a plan that aligns with your business goals and motivates your employees. Start small, measure your results, and adjust your plan as needed. With the right strategy, you can build a thriving business that attracts and retains top talent.