The Letterville BullBoard: Employee eval & raise time- anyone have experience?

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Posted by Mark in Estes Park (Member # 300) on :

... it's been a year since I hired a full time employee, he came in knowing nothing about signs- but he is clean cut, responsible, on time and honest. So- I've been teaching him everything I know and he's getting it, but still learning (like me!). I feel like it's time for a raise, and he actually mentioned it last week- but in looking around us- other similar jobs along the lines of responsibility and expectations, he's in line at $10/hr. So I have compiled a list of what I originally expected of him, short and long term goals and now need to meet with him. A local woodworker (that used to do signs) suggested I put him on commission with his own tools- pay by the job versus hourly, which would hurt me with the odds and ends that he does; but it would motivate his timliness. In a nutshell, he takes work orders and design from me and fabricates signs, usually with some guidance on technique or specs, and infrequently does jobs independently- which should address level of pay as it relates to responsibility.

I guess what Im asking for is some insight from other employers (with less than a few employees) to outline review criteria, how they hand out raises or bonuses, etc etc etc.

It could be a lot to say- call me on my dime if you have that insight- and thanks in advance!

1-888-425-7484

Mark Igel
Estes Park, Co

Posted by Joe Rees (Member # 211) on :

If you want him to stay Mark, he's got to feel appreciated. But that doesn't mean overpaying. To the young, perks like health coverage, as expensive as they are to you, are totally invisible to them. What they appreciate is what they can see in their hand. And it's got to be tied to performance. The best way I know of to connect output on his part to outlay on your part is to not give a raise at all, but an INCENTIVE. Dollars over and above his base pay for specific services rendered - ie: a $1 tip for every completed work order finished that week. In high volume shops where there are a dozen invoices generated a day, that's a fantastic perk! Other versions might be so much for every board coated out, or every truck completed, whatever is relevant to your shop. My only caution is don't make it too high initially - give yourself some room to increase it later.

Posted by Rick Sacks (Member # 379) on :

We do a review every six months. One question we ask is "What do you think you could do in the next six months that will make you more valuable to our business?" Then we ask how they could accomplish it? and what we could do to help? The pay raise comes with some benifit to the company, not just for time served or piece work. I wouldn't want to ever encourage a worker to do anything that might cut the quality of any aspect of the sign, and I fear doing what Joe suggests might do that. I'd want to have things brought to my attention of how we might improve.

Posted by Joe Rees (Member # 211) on :

Hey Rick, I've had to write a few of those reviews when I worked for an ad agency - both a self-evaluation and a plan for the next period. It was HARD! The employer was very business like in their evaluation of the review as well, with a written followup to the meeting that was signed by me and kept in my "File" for the next review. It had the psychological effect of putting me in competition with myself to meet or exceed the goals. Now, if the employer had been half as forthright in following through with the promosed raises, I might still be there. While it was very effective, they abused it and I had to move on.

The number one, major mistake I used to make with employees in the sign biz was to increase their pay based on EXPECTED performance instead of ACHIEVED goals. No matter how clearly outlined the goals were, if they never hit their mark it was impossible to take away a raise. Since I wasn't smart enough back then to figure this out, an INCENTIVE bonus worked better for me. We didn't have a problem with quality though - if a piece didn't pass muster, it didn't get the incentive (or the employee had the option of making it right on their own time).

Posted by Dan Sawatzky (Member # 88) on :

When I had a bunch of employees we raised our saleries every six months.

We expected a lot of our employees. THe learning curve in our business is steep. It took a couple of years to teach all the aspects of the business, or more depending on how far the employee was capable of.

I started them at $10. If they were good they found that they were actually making $12 at the first pay period. If they weren't working out they were laid off.

Then every six months or so we reviewed their progress. The ones who progressed were given a raise of $1. Those who didn't get the program were laid off. Either they got it or they didn't. They either worked for us or not.

They had to get along with others... be a team player. They had to produce and encourage others to do the same. This was encouraged every day.

We had FUN at work. Every day. At the same time we worked hard, and the crew took great delight in out doing each other in the amount of work to be done. They also took a great deal of pride in outdoing each other in the quality and learning and sharing new things.

We had a good bunch of employees in the end... with some making as high as $25 per hour. All goerrs and doers. They helped and took care of each other... it was a true team.

It was about attitude. I selected prospective employees based on attitude much more than talent or experience. Of the 30 or so I tried in those years there were 20 exceptional ones that stayed with us. They were like family.

What amazed me the most was that almost without exception when we pulled an employe aside to talk with them about how they were doing and offered them a raise they said..."Are you sure? You don't have to do this... I'm quite happy with what I make already."

Pay them happily what they are worth and just a little bit more. Encourage them daily and happily give them the very best tools to do the job they do. Thanks them sincerely at the end of every shift and celebrate all that had been accomplished. After work we would gather in the coffee room and wind down a little. No one was required to stay but they were all having so much fun they didn't wwant to stop. Families wold come to pick up their loved ones and they too were made to feel welcome in the group. Most of them also did things together on weekends and evenings. Not always but these guys were friends.

We didn't just have work together. If someone was moving we used the company trailers and trucks and made it a fun event. One of the crew's house burned. The crew got together and built a new one in record time.

Everyone had separate lives but they also intertwined as well.

Surprise them with little treats once in a while. We would bring in a cake on their birthday and make a little fuss over the employee. Once in a while we would 'have a safety meeting' on a friday afternoon and go see the premier showing of Star Wars or something else fun.

One exceptional year the company did absolutely great. The crew did unbelievable. We took the entire crew and their spouses to Disneyland for 10 days and even paid their salaries while we were there.

The research trip was fabulous and we had a blast.

They were a great bunch! They couldn't do enough for us in their efforts and I as leaders couldn't do enough for them either.

It was a magic five years that that crew was together and a sad day when I was forced to lay them off at the end of the job.

Happily, I was able to bring them all together once again (for a short time) while we built Giggle Ridge. And on this project all that had gone before was brougt out as we did one last big project from the heart. The legacy will be here for all to enjoy as they all outdid themselves on this project.

Good employees happen because of good managment. If someone isn't happy it's more than likely a managment problem and shouldn't be blamed on the employee. If it can't be resolved then its time the employee moved on. We all spend too much time at work to not be happy there.

-dan

Posted by ScooterX (Member # 2023) on :

it COSTS a LOT to hire a new person. it costs a LOT to train them. it is WORTH a LOT to keep your employees. give the guy at least 50 cents an hour AND figure out what he needs to be able to do in order to earn more.

on TOP of that, consider a profit sharing plan. this helps the employee to realize his contribution in relation to the whole business. you can make it quarterly, rather than yearly so its not too far away.

it means you need to be honest and open with your books. many business owners have trouble with that.

here's how i did it:

(1/2 of profits from labor) x (employees time as a percent of total shop billable time).

1/2 because you DONT give the employee a pay CUT if profits go down.

this way if the employee brings in new customers, helps you figure out better ways of completing jobs, or picks up skills on his own, it all benefits the company AND the employee.

Posted by Dan Sawatzky (Member # 88) on :

We were pretty open with our employees with our books. They didn't know the details but were aware of new equipment costs, payroll costs and whether we did good ot poorly on specific jobs. We were open to suggestions from employees and bonused for ideas used.

They knew when I was in negotiation regarding big jobs or extensions to existing contracts.

The certainly were made aware of when we had lots of work and when things were a little thin.

I often would seek their opinion regarding my estimates of time to accomplish our work on upcoming bids.

They supported us in ourtask of management and we sought to support them in thier job.

It is costly to train new folks. If you have good people make sure they keep happy with wages and more importantly appreciation.

-dan

Posted by Raymond Chapman (Member # 361) on :

Is Dan real? Actually, I think he is one of those aliens. Nobody is THAT nice!

Posted by Dan Sawatzky (Member # 88) on :

Ray

It's been said that I come from Planet Pinoccio. I don't know if thats good or bad ...but.

I certainly don't live in a normal world

-dan

It may sound like we were really generous but I also expected a great deal from our employees. I was AMAZED most days with what they could accomplish. And we did have fun every day too.!

[ January 29, 2002: Message edited by: Dan Sawatzky ]

Posted by cheryl nordby (Member # 1100) on :

Cool Dan! If there were more employers like you....there would be more happy employEES!

Posted by Jacki Allen (Member # 2672) on :

If he was worth $10 an hour when you hired him and he didnt know anything about the sign business, then he is definitely worth more now, even he still needs a little guidance here and there to complete a project. I would say $1 an hour would probably be appropriate at this point(but phrased as a 10% raise).

Discuss with him at this time what you expect over the next 6 months-1 year(ie, more independence and initiative). It may be that he is afraid of making errors and upseting you that keeps him asking for guidance. Let him know its okay to take on more responsibility, and that an occasional error just sometimes happens. Somethimes, you may think your expections should be picked up as implied, but there are some people who just need it spelled out for them.

I would avoid "set" bonuses or commissions if at all possible. They sound good on the surface, but they do almost require that you are TOO open with what is on the books. I've found that the occasional "dead president sandwich"(paycheck between a couple of 50s or 100s) after an exceptionally busy week, month, or big job make for a great thank you and doesnt become expected ALL the time. We also make sure to plan for a christmas/holiday bonus for employees in the first week of December. Even if its just a few hundred bucks, it is truly remembered and appreciated at that time of year.

Last peice of advice(and sorry for being so long winded), if your employee begins to meet the expectations long before the time you outline, make sure to bump his pay without him asking. Good help is darn hard to find nowdays and if you find it, keep em happy

Posted by Doug Allan (Member # 2247) on :

I'm ready to sell the house & business & leave Maui to work for Dan!

Posted by Bob Gilliland (Member # 28) on :

I'm ready to sell the house & business & move to Maui.

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