Pay Raises...

Mikey P

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Is there a web site or program that tells you what is average as far as when and what to give employees when it potentially comes time for a raise?

A graph that includes things like tenure, location, ability, attitude and attendance would be great
 

Mikey P

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I told him straight out many times that his phone is keeping him from getting a raise..

He dosn't care.


Damn thing is worse then crack.
 

Mikey P

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All in due time Terry.

As it is right now the kid can't drive the UD by himself, cant be trusted to make every effort possible to get a spot out and can barely tell north form south.

He's a great helper but he is a long way from being a solo tech.


He has the potential and that's why I keep him around.

As for perks, he is living at my house rent free until he can find a suitable room mate to share an apartment with.


This is NOT Washington state. $15 an hour for a 19 year old with zero skills at the time of hiring is unheard of.



Maybe if I offered what you suggested from the get go I could attract a serious family man...

That would be around 56k a year.


As far as I know at 56k a year you still get apartment dwellers who can barely afford to live here. It takes at least 157k a year to live a decent life in this area.
 

steve frasier

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don't take it the wrong way, nothing wrong with being a nice guy but is sounds like you are an enabler for him

I am sure you don't want to be with out a tech but how long has he been with you

he seems like a good kid(when I met him) but maybe that is all he deserves at the moment

I would think an evaluation at 90 days with a small increase, yearly after that with evaluation

cost of living is 3% for this year, 6 absences a year is considered average, the longer he works for you then the more paid time off he should get, usually 5 year intervals

at his age he probably would want more money then health insurance

sounds like you need an employee handbook

I don't know of a site that you are looking for, maybe ask the BRC Boys

I think if you read your post then you will answer most of your questions

I know what you mean about that text messaging, my daughter broke her's the other day, it has been drama every day since
 
G

Guest

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He's earning 15 bucks an hour, 19 years old, and living at his employer's home rent free? Surely, this isn't your son.

Where's his parents? Friends? Give him two weeks to find an apartment. If he doesn't he finds another job too!
 

Jack May

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Mikey, if he's such a great kid with such potential and worth keeping around, can you encourage his responsibility growth?

Start by setting a long term goal (6months) and then set monthly intermediate goals.

Have the reward(pay increase) set according to the enthusiasm with which he meets each goal. ie barely pass, wait till last minute to meet each criteria, jumps onto the next level as soon as he's able etc.

Just a suggestion... might not work for all types.

I had one guy a while back that came from alow income family where $$ meant absolutely nothing to him as far as incentives went. I tried the above and it wouldn't work. I gave up with him and moved on.

John
 

Jack May

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Another suggestion for those of you that have issues with staff taking too many days off sick for no apparent reason other than they have a few up their sleeve....

Something that we brought in in our Joinery workshop back in Aussie, pay bonuses on attendance. Instead of a $1/hour pay rise, have a $8/day attendance bonus.

Firstly you have it set out to be FULL 7.5 or 8 hour days but it means that some of your staff will be a little bit more particular about working.

There are a number of benefits to this. If your holiday pay is based on a percentage of your wage, then it usually excludes bonuses in it's calculation. It also means that come holiday time, your annual leave bill isn't quite as high when there isn't the production to offset it.

Obviously each would need to check regarding local state and city by laws regarding this issue but it can be a very good solution to that sort of problem.

My boos used to put EVERYONE on minimum wages and then just bonus them up. At the time I was foreman, it was a $50/day bonus if I was at work. We started this for a couple of our apprentices that used to take every 2nd Monday morning off.

Fortunately, my tech that I have at the moment is great and has only had about 1-2 days a year absolute most. and then you know it's genuine.

I did have a week without him on breavement leave but his close family member didn't actuall die (family was called to the bedside as it was expected) so we agreed to just put it through as annual leave.

At the time, his personal car wasn't fit to get him there (5 hours each way)so I loaned him my family car for a week to take his wife and 3 kids with him. A good tech is worth the effort to keep him.

John
 

Greenie

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Time to retract titty.
Sink or swim, this isn't welfare.

I know Dominick is young, but you aren't helping him to mature any faster with this coddling, sure he "was" sharing an apt. and the roomy moved out, don't ya think the prospect of covering the full rent would be motivation to find a new roommate, quick!

Been there done that, no sympathy here, life is rough, work harder, sacrifice a few things. When he's selling his plasma for lunch money he'll know there is no where to go but up.
 

-JB-

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Carpet pro,
Excellent suggestion on attendance raise, my secretary sometimes feels she is an invaluable asset to us, however at the same time, she thinks nothing of calling in "sick". I thought that not paying for sick days and requiring a doctors excuse for sick days would have curbed that, but I was mistaken. She can get her doctor to a fax a note over w/just a phone call, kind of takes the legitimacy away from the note don't ya think ? She has definitely had some legitimate health problems, but I still think 17 sick days in 11 months so far is too much, but how can you argue with a doctors note?
She was due for a review in spring of '06, which I did but with the lack of initiative, and absence problems, I didn't think a raise was warranted at the time, but a raise based on attendance may just do the trick. Nice idea!

I LOVE THIS BOARD !
 

Askal

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Mike: I met your tech at Connections and he seemed to be a nice kid. I would not stick with him my self but it is a nice thing you are doing. Tell him every day he goes without using his phone you will give him 20 bucks. Try the 10 day training program from Steve T. I use it and modified it and it is great to weed out those not capable right away. It has verifiable time related goals they have to pass to keep the job. Go to a job and just watch him. Don't help, just train. From start to finish. If he does a few really well tell him how much he would make if he did that everyday with supervision. Living at your house huh? For sure that is a little enabling. Let him know the consequences of his actions good or bad.
Al
 

Steve Toburen

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Now I know why you started your very own board, Mike. I always thought it was "politics" but now I know it is to get great answers to your questions. Just like the ones you have received above.

I don't know you tech, Mike nor his circumstances. I do know the older I get the less certain I am on giving firm answers on situations I don't know much about. (Actually I'm not too solid anymore on judgment calls even when I do know everything! Seems like it usually comes down to whatever works for the individual!)

But a few thoughts on employees in general. (Especially the younger generation just entering the marketplace as our helpers and techs.)

1. Have clearly defined expectations up front and IN WRITING- It is easy to implement rules beforehand. After they have started it is viewed an unjust when you start making up rules as you go along. Now you may not view it that way which is why you must ...

2. Look at things through the eyes of your employees. Remember that any employee in a very real sense is your "internal customer" and each and every day you need to "sell" him or her on why they should stay with you instead of leave. (Remember, I am not saying you should grovel. But every employee has the option of going elsewhere.) So instead of seeing the job through the eyes of an entrepreneur look at the job, yourself and the employee through there eyes. Especially look at the rules you make and the environment you are creating.

3. Pay them at least 20% more than they could earn doing comparable type work in your market area- You don't want the dregs. You want the best and the best are going to cost you more.

4. Challenge them to learn using a written system- Nobody good wants to be your "step and fetch it" guy for very long. They quite correctly want to learn to run their own show. So help them in this- for their good and yours too. Askal put it well above. Use a ten day Fast Track Training Outline. Every day make sure they know the answers to the questions for that day. Have them fill out the test at the end of the day. At the end of the ten day period IF they have answered all the questions correctly give them a 200.00 cash bonus or some other reward.

NOTE: Askal referred to my (actually our SFS) Fast Track Training program. Anyone who wants a copy just e-mail me at stoburen@homefrontsuccess.com and I will send a Special Report to you by e-mail. No charge. (You of course will need to modify it to fit your equipment, chemicals and business practices but it will serve as a template.

5. Learn to let go- This is the hardest thing. But assuming you have chosen your employee wisely and trained them using a logical written system let them go out on their own. Their pride and sense of accomplishment (not to mention their sense of relief) from being out from under your direction will be much more empowering than any raise.

Steve Toburen CR
Director of Training
Jon-Don's Strategies for Success

PS While I did say above I don't have definite answers anymore why is this cell phone use such a big deal? Have him leave it in the truck during the job and while you are driving between jobs let him catch up with his text messaging. Have him give your cell phone number to his parents, girl friend, etc for any emergencies. Simple. Doesn't want to/ can't do this? Well, you don't need me to tell you what to do now, do you? (Next time have it in writing as part of your handbook writing BEFORE they hire on with you. No personal cell phone use while on the customer's premises. That is why a lot of our SFS members provide their employees with company GPS enabled cell phones- and check the phone logs for personal calls.
 
G

Guest

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Damn Steve,

Even on the Mikey board you do those long winded posts. You can let loose and be a "non super duper instructor". Just tell us all in Marty terms and language.

Da :wink:
 

Steve Toburen

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Marty language, Chad? OK. That's a reach but I'll try.

1. The cell phone stays in the truck. Period.

2. Force him to learn each day with a written system AND tests.

3. If you really like and trust him front him the deposit on an apartment and take it out of his check over several months. But get him out of your house. That is just plain weird.

Steve

PS Most importantly, Mike, what do you want? Door #1- A really good helper OR Door #2- Someone that is old enough/ confident enough to go into your customer's homes and "replace" you. If you want #2 then dump the kid. Either way- get him out of your home.

Capeesh?
 

KC OHanlon

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Mike, what Steve is saying here is bang on. If you are looking to hire someone to be able to run that truck on their own, you've got to hire with that in mind. A wise old bald headed blind guy named Lou once told me that the reason that a lot of owners fail is that they are unable to hire someone that they saw as "better" than themselves. If you are constantly hiring mediocre or even weak employees, you are doomed to failure. Look to hire someone that will challenge you. I knew I had the right guy to run my truck when on his first day of training he says to me:"Is that the best you can do?".
I realize that you are in an insane employment market there, but if you need to pay the right guy $75 or $100,000 a year to run a truck that can bring in $400,000 a year, then either find him or resign yourself to being a one man and helper operation. (Not that there's anything wrong with that)
 

rhyde

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I’ve fired employees for excessive use of cell phones and text messaging. It’s a respect issue I’m paying for that person’s time and they are not giving me their full attention IF the employee can’t figure that out you’ll likely have other bigger problems down the road. I never base pay/raises on time with me but an employee’s ability to take responsibility and learn the trade there’s a time duration here…how long will it take for this kid to be to fill the position and drive the UD a month 6 months, a year, 3 years?


You need to set a limit, a point where you move on to find raw talent
 

Goldenboy

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He cant live on his own because Mikey P set him up with a car paymnet he can barely afford. Mikey P told me one of the best ways to keep employees is to get them stuck in a car payment. The guy has no choice but to keep working.


Golden Boy
 

Jeremy

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Well, it is amazing what reoccurring expenses will do for your attendance... I'd say you need to pay an employee enough for them to be able to afford your services. Just tell him no phones in the customers home.
 

Steve Toburen

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Actually Jeremy, Chuck Violand has an excellent comment on employee compensation. He says, "You should pay your employees enough that they can afford to buy a home."

I like this concept because it is sort of self-adjusting. Obviously where home prices (and hopefully wages) are higher your pricing should be higher and therefore you should theoretically be able to pay more!

The point here is it is the American Dream to own your home. Most quality people do not want to rent their entire life. So if you do not pay a quality person enough to achieve this goal he or she will likely move (either physically or to a different job) to where they can own their own home. And who can blame them? Something to think about.

Steve Toburen CR
Director of Training
Jon-Don's Strategies for Success

PS One of the great myths of the Bulletin Boards is everyone is searching for the "Magic Number" as in what to pay their employees. But when you think about it that is an impossible goal on a national level. For example, for Mike to pay his employee enough to buy a home in his area (could he commute?) would buy a mansion in, let's say, Prattsville, Alabama. (Maybe even set on a concrete foundation and with the wheels removed!)

As usual, it all depends. However on a national level I will stand by my assertion that on AVERAGE technicians do not get paid enough. One of my favorite questions to our SFS attendees is, "Could you live on what you pay your technicians?" Then I hit them with the knock out: "Would you? Long term? If you wouldn't work for you as a career why are you expecting other quality individuals to do so?" It gets real quiet in the class room after my "compensation tirade".
 

steve g

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I will not say what the problem is, because I will be labeled as racist, I think mikee needs some illegal alien labor that california seems to do so well with.

mikee it is my experience with employees that they only get worse, you can try to forgive them, you can try to give them another chance, you can hope they will see what you see because its so clear to you. but to be honest I have never seen an employee get better when there are issues with their work, I take that back I have seen one employee become great after sucking, but the reason they where having trouble was personal problems, (severe) once those where resolved somewhat they did much better.

What I learned in business school and I have also found it to be true, is pay is not a movtivator, but it is a dissatisfier in its absence, meaning it can lead to discontent if raises are not given, but mearly giving a raise to someone will likely not motivate them.

maybe he needs to leave the cell phone in the truck, or maybe a blue tooth will help. either way you are the boss, you need to find someone that can take care of some basic jobs while you are not around so you can take a day off or something, plan out your day in advance and schedule him easy jobs that he can handle on his own, if dominick can't get to this point its time for the illegal labor I talked about above
 

Steve Toburen

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I feel your pain, Steve. Employees will ALWAYS be the biggest problem you will face as a business manager. Unfortunately, if you want to "get off the truck" in this industry, employees are a necessary part of your business equation. As a good friend of mine who owns a janitorial service with over 300 employees told me years ago, "People are all I sell."

I agree 100% that paying a marginal employee more will not cause them to work smarter/ harder/ better or to quit making personal calls on their cell phone! However, by paying more you WILL be able to attract a better quality individual AND keep them longer. (Assuming that you are providing an attractive work environment which is a totally different subject.)

It is all about "supply and demand". Since the supply of quality individuals who want to spend their career pushing a scrub wand is low, the demand (and the pay required to attract/ keep them) is high.

In my mind, owner/operators have two clear choices re: their future:

1. Go small. Stay on the truck because you enjoy it and want to avoid the problems of employees. Hire a good helper and pay him well. Establish a bond with your customers and charge a LOT because your clients should understand that having the owner on the job costs more. Take all this extra money and put it into a Personal Investment Plan to provide for your retirement. (I like rental real estate.)

2. Go big. Become a "real business". Create enough "critical mass" in your organization that the departure of any one employee, while sad, will not create a crisis. Do it right (including NEVER hiring illegals) and focus on your employees and the systems that ordinary people need to make them extraordinary. The way to keep great people, besides paying them more, is to offer an internal "career ladder" of future opportunities. The only way to do this is through rapid growth.

Either one of these approaches to business can provide a great deal of personal pride and gratification as well as a comfortable retirement. The problem is most carpet cleaners wind up somewhere between the two roads and suffer accordingly.

My two cents,

Steve Toburen CR
Director of Training
Jon-Don's Strategies for Success

PS Sorry to drag on but I feel strongly on this subject. In fact, I believe the most popular article I have ever written was called "Avoiding the Road In-Between", which is where far too many carpet cleaners find themselves. If anyone wants an e-mailed copy just write me at stoburen@homefrontsuccess.com
 

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