Performance Pay/Configurable Payroll

[rachelborgatti]

Hi! I work for a Home Services company (HVAC, Plumbing and Electrical) and we are interested in implementing performance-based pay.

I am just curious what others' experience is with this and what your most successful structure is?

We were looking to structure in somewhat of a flat-rate type of pay (sold/billable hours/task times etc) but how do you manage this when a technician has a call-back more than a week later? You cannot legally dock their pay, to compensate for the recall (i am in MA for reference).

Would more of a performance-based/efficiency bonus structure be more scalable in this event?

[JessicaSmith]

Hi Rachel! I'm also in MA (but the company I currently work for is in California). When I was working in MA we struggled to get our techs on board with performance pay. At my current company we're currently spiffing specific items, but we're working toward building a plan where technicians would get a base hourly rate (less than a tech would want, probably in the $20/hour range) and certain percentage of all their sold work and a certain percentage of all their installed work- if they do both they get both but if they sell it and someone else installs it ensures compensation for the tech turning the wrenches. If they run a callback or other $0 ticket or when they are in meetings, they get only the hourly rate.

[LBabayan]

Hi @rachelborgatti and thanks for your posting. Let's see if one of our Payroll experts @JessicaSmith  can share some best practices for implementing performance-based pay.