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welcome back to Callahan’s corner where
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you got some questions we have some live
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right here on Facebook got a User
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submitted question here in the service
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autopilot User Group
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um and I’m going to pull this up here or
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actually read it off the screen uh
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question is uh Jeff asks does anyone
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have a report that they used to figure
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out paper performance for employees not
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sure how we would share but looking for
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ideas so uh Jeff’s talking about paid
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performance or uh probably date myself
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here a little bit but also considered or
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called piece rate pay now uh before we
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dive into us if people have never heard
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about peace rate or uh the new term that
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you’re using now uh P for p
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um that Mike Andes has introduced in a
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lot of the ecosystems over the gust of
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lawn care uh piece Raider P for P or pay
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for performance
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is a pay system
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um that has not only been adopted in the
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lawn care industry but as well as the
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home cleaning industry uh one of the
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leading experts in the home cleaning
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industry Debbie sardone has also
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introduced uh pay for performance in her
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Consulting area so whether you’re doing
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lawn care home cleaning this is going to
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be applicable if you’re using essay and
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I’m going to show you some examples in
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sa but before we dive into it I really
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want to talk about what is Pace rate or
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pay per performance uh so the idea here
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is that we are going to pay the employee
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on a uh percent or on the actual
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budgeted time on the job with a quality
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control uh that’s going to be the most
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important part there because when we
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introduced uh piece rate pay in our
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company uh we’re focused more on just
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production and not just
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um production with quality now the
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second option here that has been
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introduced lately in the last five to
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six years has been uh paper performance
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or piece rate pay on the percentage of
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invoice so a lot of people want to know
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how can I run this report inside service
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autopilot for
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not only the budgeted time as a per or a
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percentage of invoice so my personal
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opinion is we dive in here I’m going to
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show you what this looks like in an
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actual uh pre-built report for lawn care
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and home cleaning
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um is that when you’re going to
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Institute uh piece rate pay we want to
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base it on the budgeted hours now
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there’s two or three different reasons
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why I suggest this but the reason why we
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want to do this is that
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um we can now compare our employees on a
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public accountable chart or dry erase
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board or TV in the office or shop
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um so we’re basically comparing apples
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and apples the second reason is is we’re
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doing uh based on budgeted hours the
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employees now or team members do not
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know what you’re charging for every one
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of your accounts so
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um not being paranoid but that may not
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be something depending on their level
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that you want to share because at one
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point in my company we lost about a
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third of the employees overnight
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and they went out to literally start
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their own company and take our clients
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uh long story short we we ended up very
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quickly with some legal injunctions and
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um contacting those clients but those
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are some of the risks if you’re doing a
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percentage of the invoice amount uh
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especially if you have 1099
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subcontractors
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um so I wanted to open up the screen
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here and talk about what Jeff talked
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about here is his question around paper
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performance so without any delay here
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I’m going to pop in and show the screen
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here uh so this was Jeff’s question that
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was submitted uh anyone have a report
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that we they used to figure out paid
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performance employees not sure how uh
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but should look for some ideas so what
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I’m going to do here is pull open
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um the first example that we built for
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CBF members cleaning business
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fundamentals this is Debbie sardones
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this is part of her business in a box
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that we build for her members but
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whether it’s lawn care home cleaning uh
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this is a great example and then I’m
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going to show you a lawn care uh Slash
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home cleaning example that we built uh
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before we started working with Debbie
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um that works an essay as well but
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really what you’ve got here is uh Carla
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and I are two individuals two separate
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Crews that have actually gone in and
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done uh this job
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and we’ve got a area here of checking
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the clock time the billable time the
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budget hours so I’m going to talk about
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the dispatch Board of the closeout day
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screen to make sure we have good data in
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good data out because that is going to
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be one of the most important things also
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an essay no data in no data is your
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Achilles heel as well so we just got
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done with the simple growth two-day free
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live training event in New York here
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about a week ago uh going to be
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continuing those throughout each quarter
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but um the big thing here is is we found
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that data is not
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um really your friend unless it’s good
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data so we want to make sure we’ve got a
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good clocked in the little hours
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budgeted time and job amount and what
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you can see here is we’ve got three or
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four different pay levels we go up to I
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believe about eight different pay levels
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in our report uh that we actually create
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for service autopilot but what you’ve
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done is you’ve set either a percentage
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and once again I’m not recommending that
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we do the percentage but some people
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asked on this so 35 44 49 and 53 these
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are the numbers you would plug in as
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you’re paid a percentage of invoice and
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based on that uh billable hours uh Carla
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came in before I did uh with her clocked
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in time of 11 30 to 12 21 and I came in
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at 12 to 12 34. so uh the idea is if we
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did like a spring cleanup or multiple
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jobs or multiple crews are coming in we
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can pay those people on that crew as the
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percentage of budgeted time or
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percentage of invoice they’re actually
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there so Carla picked up 60 of it I
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picked up 40 based on the pay level uh
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these would have been the actual pay
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amounts here that we would have gotten
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paid individually on that job so that’s
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the idea we want to be able to break it
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down as a percentage of invoice or
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budgeted hours so what I’m going to do
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is open up the screen here and take a
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look at
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the report Center here and this one here
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is uh our version of our pay for
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performance or piece rate based on an
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actual dollar amount so you can see the
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pay rates here that we have have shrunk
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down the four but we go up to eight uh
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16 20 22 and 24. that’s the hourly rate
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that the employee would be making and
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we’re going to multiply that by the
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budgeted hours or the percentage of
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budget hours that they actually would
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incur now you may look at this and say
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Mike there’s a lot of red on the screen
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well you’re absolutely right so what
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we’ve done is built some logic into this
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report so if you’re going to run this
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report for payroll uh obviously
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important to make sure we’ve got good
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data so we’ve done is built in some
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logic into this
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um
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to make sure if it the data does not
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look right that we actually can go in
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and show you uh the areas you should
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look at before you run payroll so uh in
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this test account uh we’ve got clocked
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in times over here that we’re not done
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uh and we’ve got some budgeted hours
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they’re missing now we do have a dollar
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amount so that’s okay
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um but the idea is we’ve got our levels
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of pay and then these would be the
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payouts based on the percentage so if
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you want to walk into your service
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autopilot account and have this
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automatically emailed to your payroll
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company your payroll person every week
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or bi-weekly
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or be able to have your team members or
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managers go in here on a daily or weekly
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basis to create public accountability we
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need to make sure we have good data in
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here so what we’re going to be doing is
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looking at the dispatch board
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um and there’s some things in here in
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this test account here that we are
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looking at so the first thing we’re
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looking at here is under columns uh just
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like we showed in our live training
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event we want closeout day screen and we
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want variants and I want actual hours
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and once we click those in we have that
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ability I’m going to suggest that you
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save a view here and do it for each
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cruise and go in each day and double
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check this and if you’re running a
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reporter or an analysis that is going to
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be driving this automated email to you
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one of your five automated reports
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um all these areas should be green as
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they are here in the screenshot right
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here so this is what it should look like
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in order for the good data to be in
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there
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and all the data we need several things
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here so we need to start and stop time
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that makes sense we need budgeted hours
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and we need a dollar amount if all three
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of those apply then when we come back to
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our piece Raider pay for performance
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report and service autopilot all these
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areas should be green and we can be able
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to pay out on the different level of pay
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or
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um in Debbie sardone’s model the paper
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performance with percentage of invoice
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uh Debbie does also do a percentage of
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dollar as well as budgeted hours and I
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believe Debbie also recommends the uh
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based on budgeted hours so we’re not
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giving away our pay rates here but uh
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either way that’s what it’s going to
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look like inside service autopilot uh we
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want to go in and build that in
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and make sure if we’ve got bad data that
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um
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it is going to highlight it in red and
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let us know so we can have an admin or
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somebody check that and now the business
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owner has clear great data they can
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provide to the team members and actually
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do that if this is something you’re
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interested uh hit up the simple growth
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team we do have a done-for-you model but
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if you’re building yourself this is what
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it actually looks like uh this probably
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took two and a half three months of hard
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work and testing to actually get this
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dialed in but once it’s dialed in uh we
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had one company that took about 30 uh
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Cruise team and basically for their
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payroll it took two and a half to three
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days to literally calculate this a week
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for payroll uh once this report was
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dialed in it was 15 to 20 minutes so two
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and a half to three days worth of work
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to about 15 to 20 minutes so this is
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going to give you the data that you need
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um and ideally if you’re building a
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shelf it’s going to look like what we’ve
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done here with Debbie’s example here
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um for paper performance so if you’re a
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cleaning business fundamental I remember
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uh definitely give us a call uh this is
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something we’ve got already pre-built uh
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for Debbies with her methodology as well
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as her whole complete estimating
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production rate system uh but you do
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need to be a CBF member to have access
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to that otherwise if you’re building
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yourself or you want something based on
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our original reporting for lawn care or
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home cleaning we have our simple growth
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report but this is how you build it
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yourself so comments questions drop
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below but remember uh piece rate we’re
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paying on budgeted time
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we need to have a quality control
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standard with that piece rate and it is
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not to avoid or uh get past time and a
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half or over time that is needs to be
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paid legally in 99.9 percent of the
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states so we need to be paying our
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overtime Most states it needs equivalate
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or be equal to
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um time and a half at minimum wage but
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the idea here is that
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um when you run those reports they
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should be making well over the overtime
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rate
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um with pay uh piece rate or paper
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performance so comments questions
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dropped below this is how you break down
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paid performance or piece rate reporting
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with production and quality based on the
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budgeted hours or if you opt to do
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percentage of invoice but I do recommend
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sticking with paying on the budgeted
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hours because we can have public
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accountability we can show the hours and
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it’s an Apples to Apples comparison
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based on uh percentage so comments
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questions dropped below Callahan’s
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corner you ask the questions we answer
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them live right here