Employee Bonus/Incentive Program

My wife and I own a small ma and pa shop. Have a decent following around 300k a year, 6 employees 2 asst. mgrs. All of our employees are loyal and do a decent job exspecially the 2 asst. mgrs. We can’t afford to give raises but want to do some type of bonus or incentive style progam. The goal would be to have them feel some since of ownership. We want to try to get them to feel the same as we do when orders are incorrect, or there is exsessive waste, or customers are unhappy and so on…Any ideas on percentage of sales, or set weekly, monthly, quartly bonus’ if we average a certain $ amount and or food and paper percent?

Thanks in advance

-J-

I have heard of some places that do this type of thing. A raise of 50 cents and hour will cost you over $1000 a year for a 40 hour a week employee and in a months time he will forget that u ever gave him a raise and 6 months later be wondering why he has not got another.
A $100 bonus every few months only costs you $400 a year and the employee loves it because he is always getting a bonus. They tend not to forget as easy.
I dont do this myself but the idea has me intrigued.

I had a program where they could feel like they were owners… they go out and get catering orders and they got a good percentage of the order…

Well it didnt work…

In the end… Its great to have loyal employee’s and try to take care of them. But your loyalty needs to be on your business. You do not owe them anything… You pay them weekly or bi-weekly and Im sure a fair wage… If you cant afford to give them a .50 cent raise then I think that you shouldnt worry about doing a program thats going to be more trouble then it truly is worth.

Every employee’s replaceable… Because the most loyal ones will leave when they are offered a better deal or they are ready to not be a “pizza boy”

Just my opinion :slight_smile:

Im not so sure the program i speak of is something one does just because they cant afford a 50 cent raise. I think the people that do it look at it more like why pay these people so much more when they are going to leave first chance they get and they dont really care about your business. Like you said flippinhonda "Every employee’s replaceable… Because the most loyal ones will leave when they are offered a better deal or they are ready to not be a “pizza boy”

I dont see how the program would be more trouble than its worth either. I know when i do my payroll i have a column where i can enter a bonus for any employee so if you have preset dates as to when your going to give the bonus its as simple as pushing a button.

As i said before though i dont do this type of thing but would be curious if anyone out there does anything like this.

We want to try to get them to feel the same as we do when orders are incorrect, or there is exsessive waste, or customers are unhappy and so on

I make them feel exactly like I do: if they screw up an order - they pay for it. Not paying attention and drop something? No problem - you bought it. Enter the order again for the customer. Throw away or break equipment? No problem - you bought it.

Any ideas on percentage of sales, or set weekly, monthly, quart(er)ly bonus’ if we average a certain $ amount and or food and paper percent?

I somehow get the feeling this is heading in the direction of other threads in the past… If I pay my employee more, will they be better employees? Or give a poor performing employee more money and somehow he’ll get better. ABSOLUTELY NOT! You’ll be rewarding poor performance.

Honestly, at $300K/yr, your shop isn’t making enough for much of anything. You’re just getting by. Others are probably underwater at that sales level.

The best way to reward yourself and your employees is to increase sales and profit. Instead of worrying how to split a dollar 6 ways, brainstorm how make 60 more dollars.

This is EXACTLY what I mean…

Why focus on the employee or taking care of even a good employee cause you might be worried they will leave…

You need to grow business… you life is invested into this business, theirs is not…

I had that mind set too… lets take care of our employee’s. after being burned Im with pizza2007… They are buying what they mess up and what they break or lose.

“I make them feel exactly like I do: if they screw up an order - they pay for it. Not paying attention and drop something? No problem - you bought it. Enter the order again for the customer. Throw away or break equipment? No problem - you bought it.”

Can you legally do this? Better check the labor laws

In my past I have worked at places that “appreciated” their employees and paid them more than the market rates…In those places, fewer people were needed to move the same volume as in places with more lower paid employees…If your employees are not appreciated and invested in your business, all your efforts might still leave you with a “sinking ship”…

BC,

Can you legally do this? Better check the labor laws

Yes. Did. And Do.

So a driver takes your $100 pizza order and turns it into mush. >>>>??? Really? My policy is deliver it like you got it or else, pay for it and do what you like with it.

I also pay to train new employees. But once they’re trained, they’re also responsible for work performed.

I also have a ‘no refund policy.’ Once a sale is made, no refunds, buyer beware. Is that legal? Yes.

A contractor screws up your house, is he liable?

Not only should you know the law, you should know your rights.

depends what happend to turn that order into mush… there is a difference between a mistake and intentionally doing something to an order or piece of equipment. The driver slips on Ice in the customers walk way and drops the bag so now he is responsible for that $100 order? Personaly I would say nice working for you and BYE

Mistakes happen… if you want to eat your mistake you pay for it otherwise I keep it.

BC (and others),

I know that I come across as really HARD. Truth is, I am. But everything isn’t black and white, that’s why we get the big bucks, to make decisions on things that aren’t black and white.

by royster13 »: "…places that “appreciated” their employees and paid them more than the market rates

Yes, I’m sure my employees are above market rates… They average between $13/hr to $28/hr. I have employees in their 3rd, 4th, 5th, and 6th years of employment. Additionally, I handed out year end bonuses (before Christmas) of at least $300 to $1000 depending on years of employment.

My store policies are what they are. They are uniformly enforced. If you choose not to abide by those policies, then you will be terminated. Store policies are a condition of employment.

Pizza2007-

You cannot make them pay for their mistakes if in turn it causes them to fall below min wage. You cannot also deduct from their pay without their permission.

No offense, but this sounds like a pretty hostile working environment

I thought there were laws like this

If they agree to your policies when they are hired and sign it and are over 18. It’s legal.

The law does not allow an employee to waive their right to be paid minimum wage, even if the employee signs a waiver.

OMG NO!!!

Are you afraid that we are summoning the demons Rick?

I could not help myself. I laughed out loud!!!

So then you take it out of their tips…

you guys are over thinking this…

if you want to keep your employees you pay them… if you cant afford to then you dont.

you want to run a incentive program? Do this…

Upselling contest… a employee that takes a customer into buying or adding a Appetizer or a salad to their meal gets a check… 15 checks gets 20 bucks…

Atleast with that your putting money in your pocket.