Pay-for-Performance EXPLAINED by Mike Andes! [HOW P4P WORKS]
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- Опубліковано 15 вер 2024
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#PayforPerformance #P4P #MikeAndes
Friendly reminder that we love you mike. Thanks for paving the way for us small time guys
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I love incentive based pay.. I left a cozy
Union job to pick orders in a warehouse for incentive pay. A good efficient laborer is worth 100k.
Love the new snow ad!!!! 🥳 it’s working!
LETSGOOOOOO
I like thinking outside of the box but I started my business with a bonus system where employees made more money than a base hourly rate. They don't understand it and always skeptical, especially in the hiring process. Let's face it we aren't dealing with brain scientists in this line of work. They were happier about a higher hourly rate that actually saved me more money even though I compensate my guys well not to mention the extra work and time it took to calculate bonus. It's a respect thing for much of their mentality.
the power employees will get it when they make 30/hr instead of 20/hr
Would love to see more behind the curtains... Maybe a data entry video... I get the concept of P4P, I'd really like to look behind the curtains to see how we get to this point. What additional data tracking/entry is required ? How does this work with my current estimating/billing software ?
There is a free course at MikeAndes.com/p4p
How would this work for employees with different skill levels un-qualified labourers and qualified tradesmen? I have a roofing company not lawn care but would like to use this system.
How do you handle it if the estimator clearly makes a large error on the budgeted hrs? This could be over or under.
If they over budget and don't get the job, they don't get paid. If they under bid then they get to think about it the whole time they are on the job when they make less and did it to themselves. Lastly a strong system will help prevent this from happening as there will be a clear understanding of expectations as well as how to estimate properly and accurately.
At what revenue point and what employee count would you recommend implementing P4P ?
Anything more than one employee. As soon as you have unmanaged labor
Can this model be applied to a company that also has a bunch of shop time in order to prep for the order? Would love a chat on this.
Hey Mike, a question - I operate in South Africa so our work model is quite different. I fully understand your P4P concept and find it a game changer. My teams operate as follows, 1 supervisor and 3 brushcutter operators. I use your system to a point as even if my guys complete work in advance of BH, my turnover for the day will remain the same. I look to pay out performance against the day's turnover. That is , extra gardens become the incentive to achieve higher pay. Currently I run at a labour CTC of around 27% of turnover. What are your thoughts? If you do get to read this..lol
I am a painting contractor. I have had very larger contracts that have taken weeks to even complete. How would this software work with that? I can't hold off on paying people for a month until a contract is completed.
Also, does this software work in Canada and li k up with Wagepoint?
Hi Mike
Thanks for another great video. Is correct to say that if the customer is getting charged 100 dollars to have their lawn cut that P4P pays the employee 33 dollars (33%)?
I'm unsure if I am understanding labor revenue correctly.
Yes. Correct ✅
How do your employees' clock in and out? What about lunch breaks out in the field?
On the P4P mobile app
Mike Ik I’ve heard you say P4P isn’t necessary or ideal for under $500k revenue. But do you think it is still applicable to use it for a business doing $250k with owner + 2-3 employees in the field ? And would including me as the owner in performance based pay as well make sense ? I’m struggling with organization and tracking numbers, although the performance based pay won’t be as significant I feel like it would help a lot with tracking efficiency and be a bit of a boost!
It is very necessary. Anything above 1 employee I would recommend using P4P ✅
Anytime there is unmanaged labor
@@MikeAndes Great I definitely want to implement it this year then! For my size operation what payroll software do you recommend is best fitting ?
I’m making my run at lawn care this year thanks for all the info! What kind of khaki pants are those?
Just Amazon essentials 😀
Perfect
thank you
This sounds and looks a lot like the pay system that Trugreen used for 40 years until they were sued and had to pay millions of dollars and forced to switch to hourly pay.
Source? I could not google anything
DOES the software measure time spent to profitability ? Will it tell me that a certain job needed an increase in price to make it a certain amount of profit eg. 30%?
This can be determined by seeing of jobs went over budgeted hours. P4P only measures labor and there is other factors such as material markup and overhead recovery that are important when looking at overall profit margin
@@MikeAndesI find it strange that home services business mix their profit into labor and materials markups. It muddies the water. Is that a convention in the industry?
Is there a way to setup a demo for this software?
Concept looks great. But wondering how it would work for a remodeling company were you some jobs take 3 days and the jobs are planned out two weeks ahead of time. I
Good question! It works for projects as well. We have used it for jobs that’s take 2+ months
@@MikeAndes if they finish early, are they just off of work?
How does this work if employees do something more profitable like aeration (stand on) and make over $2k in one day?
if they do the 2k job in half the time because of this incentive, we want to reward that right? Should work the same
Interesting. But I see two problems with this method. One is a a job bias might develop when guys know certain jobs Pay a little more than others. Also, this is risky for the business owner because he’ll end up paying guys more on jobs that were possibly bid a little higher but he won’t be able to lower his base pay for his workers for jobs that were a bit underbid
Certain jobs would only pay more than others if they were more efficient on that job. It still comes down to performance. The issue with bidding would come down to knowledge and experience. If you know you budgeted hours for that job you would rarely underbid your work unless you just want the job to grow. In which case the owner would weight out if that is a sacrifice he willing to make.
how does this work with teams?
The software divides up the P4P for large projects and crews
profit margins are so small it would kill my business commercial accounts are getting so cheap this year
You need to Cut waste before you could even think about starting this
@@Adrian-vd8rm yeah this is a recipe for bankruptcy. With the cost of equipment,trucks and fuel and good employees demanding top pay the profit margins are so small already. You’re not going to find anyone experienced that’s going to work for less than $20 per hour
Tried to unsubscribe from your service and you charged me for 6 months. How do I unsubscribe? Someone help please.
Did you not like the system?
Do you have a house at all Pyle do you solely sleep in that closet thing that’s crazy😂
why 33%?
That's what he is using and works for his business. Its a easy to caclulate since its 1/3rd. In another video he talks about how to get this number.
This is just to get the work done the more faster they can whit not quality, this idea its not good at all.
Yellow slips penalize poor quality. Our callbacks dropped by 40% when we switched
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