Some companies want to be able to pay different amounts based on the number of job ticket hours that a technician cleans for a week.
I wanted to put out some documentation on tiered pay, and what I see as a more modern and employee-friendly way to do this.
I personally see changing an employee's pay rate weekly as something that could be seen as a negative, and the modern work environment has changed dramatically to the point that perception is often more important than reality. The reality is you are trying to give them a pay bump for excellent performance. But how does an employee perceive it when they get a 10% demotion in pay one week because their child was sick and they missed a day of work?
My belief is that you never want to do that.
Instead. Consider the following. Always keep their base pay the same. If that is allowed hours don't move that up or down unless they get a raise, and use the lowest tier. If it is percentage, keep the lowest percentage tier.
Instead, consider putting the differential pay on their check as a bonus for performance/attendance. That should always be perceived in a positive light.
I outline the steps to do so in the video.
But for example. If your employee Steve worked 37 allowed hours in a week, and his base tier is $20, and he is paid $21 for 26 plus hours, or $22 for 32 plus hours, put a $74 bonus on his check and use the notes to mark it as Tier 3 Pay. That way the money stands out each week and each year.
If you are using percentage pay the calculation is as follows. Let's say Steve generated $600 in commission pay. You divide $600 by his fee split percentage. So if Steve's Tier 1 pay is 38% $600/.38=$1578.95. If his tier 3 pay is 42% then the differential is 4% so multiply $1578.95*.04=$63.16. Put that in the additional pay in MaidCentral as a performance bonus.
One of the main goals of MaidCentral is to create happier, more engaged employees. We believe this is a better way to create the engagement you want from tiered pay, and will be seen in a much more positive light.
That is a supported feature in MaidCentral for Pay For Performance, Tiered Pay, CBF Pay, Performance Pay, and Performance Bonus.
1) Export the sheet to excel and create a macro that multiplies they number of job ticket hours by the the additional pay per hour the tech would earn based on the rule of $0 for 0-26, 26-32 = $1, 32 plus = $2. You can populate the bonus column with this or you could create a new column. So an employee that did 35 job ticket hours would see a $70 bonus on their paycheck that week.
2) This option is more labor intensive and is not the recommended option. You would use the proceeding weeks job ticket hours and you would adjust every employee to the appropriate level for the next week. So all employees over 32 hours would get $24, etc... Or you could do this job by job on the Invoicing and Job Records report.
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