[johnkeegan]

After more thought I've decided that there will be these bonuses given out on more of a random basis, not at set intervals.

That removes the competition aspect of it. ("I think his idea sucks".I should have won this month." ...blah,blah, blah) It seems to me that if you're trying to create the idea of teamwork amongst employees, it's counterproductive to simultaneously have them directly "competing" against each other.

There may also be some months where there are no real worthwhile ideas being hatched.

In the past I liked the idea of random bonuses for specific acts of excellance. I just want them to know that it's noticed and appreciated. Seems to go over well.

And I don't want to sound callous and cocky but I know "it's important to hire the right person..." I've done this for over 20 years. I have a long list of employees that have been with us for extended times. Some 8, 10, 13 years. In 20 years I know of no one that has quit here to go work for another landscaper. They may leave to retire, try an "easier" line of work and/or finish their college degree and move on. But from all I've heard, we pay the best, treat them the best and expect the best. So, it's not that I'm trying to fix a broken system. I'm just trying to tweak it a little.

Let's face it, most people who choose to be an employee for a landscaping company probably don't have a history (at home, in school, or in previous jobs) of being encouraged and rewarded for creative thinking and problem solving. If you acknowledge that, it would seem that it makes sense to give them a little nudge in that direction now and then.

And, personally, I would prefer to not muddy things up with complicated production-related formulas and us-vs.-them competitions, etc. I like it simple.

[trees]

I have a very simple bonus program that seems to work for us.

Each employee starts with a certain amount in the "bonus bank" for the month. This amount is different for foreman vs. laborers. Throughout the course of the month, deductions are made from the bank based on a defined set of "rules." Be to work on time... off the lot by a certain time... leaving tools at the shop... return calls... customer complaints... etc. I post the deductions along with the reasons on a board in the office. Each deduction carries a certain amount (except for losing a tool or destroying something which gets deducted at cost). What's left at the end of the month is their bonus.

This is not perfect and I know the objections of "why give people a bonus for doing their job right?" but I can tell you that it seems to get the guys thinking about what they need to do. For instance... I had one guy who's a hell of a worker but was consistently 15 minutes late. Once that was going to cost him $10 a day, he hasn't been late one time. All the foreman now really pay attention to end of day cleanup at the shop, etc.

In addition to that, I'm a firm believer that frequent praise and random small tokens of appreciation, nothing formulaic, adds a lot to an employee's positive attitude about their job. I try to stick to the "say 10 positive things for every 1 negative" method of management and my employees seem to appreciate that.

[johnkeegan]

Thanks Trees. I like to hear about things that actually work, as opposed to theories from a book. In the past I thought of a similar idea which was to start with a pool of say $2,000 to be split amongst "anyone still standing" come December. Deducted from that all year would be all the broken tools, fender benders and comp claims. Again, I thought having some shared pain/gain might have them looking to prevent each others mishaps as well.

[dan deutekom]

Quote "For instance... I had one guy who's a hell of a worker but was consistently 15 minutes late. Once that was going to cost him $10 a day, he hasn't been late one time."

If I had a guy like that the cure is to send him home when he is late. Lose a couple of days pay and he will tow the line or leave. My opinion about bonus's is that they get paid out for going above and beyond not because you do what is expected of your job.

Treat the guys right by listening to them, let them take responsibility for their job, treat them like a valued employee and team member and don't be cheap with coffees, the odd lunch or the occasional beer after a hot day. Sitting down with them during those informal "breaks" and "chewing the fat with them" will net a lot more ideas than any bonus.

In my experience money is not a prime motivator. Respect for your employees abilities, ideas and work ethics is. Give them the leeway to do their job their way. It just might be better than yours. If not they will take your direction but you have to let them try. It is the little things that show this respect. Things like ice cream on a hot day, letting a guy get to the bank when time is tight, lending them a truck when their car breaks down etc.