Employee Compensation

F

Fleet Chemicals

New member
Would like to get your thoughts. We used to pay by the hour now we pay per truck. I found that there is to much downside to paying per hour, especially in this low margin industry. We motivated our Crew Chiefs by paying them per truck washed with a performance bonus.

What has worked for you guys? What has failed?
 
I have been looking into this but haven't gotten my numbers right yet in it. What type of numbers do you use for say tractors. If you would rather not make that public pm me
 
If my labor is 30% of my gross, lets say, and I'm charging a customer $10 per truck, then I pay $3 per truck. The biggest thing is that it changes their motivation, big time. I've had some issues with them washing to many trucks but overall its been a smart move. I have guys making more than me, sort of.
 
Our competitor pays his guys that way and it has failed miserably for him. His guys fly thru the work so it looks like crap, or they just write down #'s of units and not wash at all. I don't understand why people even use his company. I could see it possibly working as a supplimental bonus instead, but also adding a lot to office staff time in calculating everything up, especially if the business increases.
 
So what was the issue? Your people were sitting in the trucks and not doing the work just to get their time? They were "freelancing" with your equipment? Do you wash with your guys or mainly manage now, making it tougher to supervise them? Do you monitor their progress with GPS tracking?
 
All of the above things I described were issues that we have had in the past, plus there were others that I didn't get in to. Everything changed when we installed GPS in the trucks. Best money we've spent in a long time. Glad to see you got it turned around too! Employees are smart. We just have to be smarter.
 
I am finally getting ready to install GPS on my trucks. I am thinking that I am going to go with the Verizon system. What have you found works well for you?
 
We went with a local start up company. Looks like it has similar features compared to Daves. We have to buy the equipment up front, and then it's $20/month per vehicle. Ours is hardwired into the vehicle which works great for us.
 
You must log in or register to reply here.
Back
Top