Search

Tiered Pay Structure System - Debbie Sardone Pay For Performance Model

Tiered Pay

MaidCentral believes it is a best practice to use incentive pay strategies in your business. MaidCentral makes this easy for you to manage and control, especially when using Commission, or Allowed Hours pay. (often referred to as Job Ticket hours)
A way to further incentivize these methods is a tiered paid structure such as Debbie Sardone's "Pay for Performance Model"
 
How does tiered pay work with MaidCentral?
Tiered pay works best when using two of the 3 pay structures that MaidCentral Offers, Commission pay (Team Fee Split), or Allowed Hours (Job Ticket Hours). 
 
Below are 2 examples with breakdowns of a Tiered Pay Model and how you can quickly and effortlessly apply it using MaidCentral!
 
Ex 1.  Allowed Hours - Hourly Pay
 
Your employee, Steve worked 37 allowed hours in a week, your base tier of pay is $20 for the first 25 ticket hours, $21 for 26+ hours, and $22 for 32+ hours.
Instead of adjusting Steve's pay on every job, or adjusting Steve's pay from inside his Employee Profile you can instead give Steve a $74 bonus on his check and use the notes to mark it as "Tier 3 Pay". This way the money stands out each week, and each year.

Ex 2.  Percentage Pay / Fee Split
 
Let's say for this example - this week Steve generated $600 in commission pay. You divide $600 by his fee split percentage.
In this EX.
  • Steve's Tier 1 pay is 38% 
  • Steve's Tier 3 pay is 42%
You will take the 1st tier of $600/.38=$1578.95.
We then take the % differential  (42 - 38) = 4% so multiply $1578.95*.04=$63.16.
We then apply $63.16 to Steve as Additional pay

Applying the Pay using MaidCentral's Bulk Additional Pay:

MaidCentral's New " Bulk additional Pay" report allows a great, easy and efficient way to add tiered pay to your employees through the click of a few buttons!

Accessed through the Company Tab > Additional Pay the new "Bulk additional pay tab" that will allow you to apply your tiered pay, and incentivized pay much quicker and easier!

  • The Bulk additional pay report is accessed through the same report as the original Additional Pay > found under the Company Tab > Additional Pay, then choosing the "Bulk Additional Pay" tab

This new report will allow you to filter by "tier requirements" or any measure you are using for your Pay for Performance Model!

 

Ex 1 Allowed Hours:

Just like above we wanted to give a bonus to all employees who achieved more than 35+ allowed hours a week. (Like Steve in EX 1 seen above)

From the Bulk Additional Pay - We can chose a specific date range

 Apply a filter of only employees who have between 35-50 total allowed hours.

Once populated, We can then Apply the Additional pay as 3$ bonus to every hour he worked to every employee who qualifies at once!

We can apply a 2$ extra "target rate" for all "total allowed hours"

This will cause the report to automatically take any employee whose hours are 35+ and Take their Total Allowed Hours x 2$ and allow you to apply that pay to all employees at once!

 

 

Ex 2. Commission Based Pay

Perhaps you would prefer to do incentivized pay based on Commission and want to provide a 2% bonus to their gross wages more per if the technician gets 100% customer satisfaction for the week.

The bulk additional pay allows you to quickly filter by employees with 100% satisfaction using its "Advanced Filtering"

And you can apply a 2% of Gross Wage  and the bulk additional pay will do the math for you! Adding an extra 2% of their total gross wage to all employees at once.

MaidCentral makes this easy for you! All you need to do is chose which type of pay and you can create for all employees at once!

 

The calculation seen above is based on the employees original gross wage 

249.08 x .02 (2%) = $4.98 bonus since their scorecard Avg was 100%

 

 

More in-depth knowledge and examples of bulk additional pays can be found here : 

https://support.maidcentral.com/hc/en-us/articles/14390609219476-Invoicing-Report-Additional-Pay-and-Bulk-Additional-Pay-

 

 

Related articles

Was this article helpful?

Comments

0 comments

Please sign in to leave a comment.