How to pay employees base plus commission?

[freedomfighter]

I am thinking about a different pay structure for employees- base plus commission- I need input - guys are independent contractors and use their own vehicles - input please !

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[Dave Maycock]

I am thinking about a different pay structure for employees- base plus commission- I need input - guys are independent contractors and use their own vehicles - input please !

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I've always done a percentage with self employed people. If they are out with me it even tho they are obviously not getting as much as me, it still means every extra house is more money for them.

Same with people using their own vehicles. Same incentive. Just a higher percentage. Often find it gives people the reason the want to do more. Unless you have people who do it as a hobby as they've one the lottery or something.

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[Hawke]

I have a guy who does some worknfrom me on sub-contractor basis. Gets a day's wage if all work completed or reverts to lesser hourly rate for his time if not.

Again, its an incentive to reach a target but he still gets fair pay for what he does and everybody is clear.

 

[Rosewood]

Tricky one this, if you set a target and provide an incentive to hit it staff will put in that bit of extra effort to get to that target, the problem comes when they try a little too hard and quality of work starts to slip.

You could find yourself in the position of paying staff more for doing a poorer job, when they've done this once or twice and got away with it, it will escalate to the norm, you will then be paying more to staff and be losing customers because of shoddy work.

A lose, lose situation.

 

[craig at pure]

With the guy who works with me I do 50/50 then I take 20% from him. For over heads.

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[DMD]

Speak to an accountant first

It needs to benefit both of you but you need to keep yourself legal rather than trying to be a good boss

 

[Green Pro Clean Ltd]

I do have a lad I sub for large jobs. He invoices meand I pay him. Simple as that.

For employees however (real employees on the books not cashbinhand dodge thetax types) They get hourly rate plus they get the first clean price of any new work they pick up (after the second cleannhad been done)

Works well, pays them a fair wage plus a bunce for extra work to grow the company.