We all want excited, motivated employees that are “invested” in the future of our business. The single best, cheapest and most effective motivational technique? Public Recognition! BUT money talks too! (“Date Night” certificates are also big winners!)
So how can you get maximum traction out of this “Dynamic Motivational Duo” of Recognition/Money? Start by changing your bonus approach…
Don’t include a small bonus in your employee’s pay check. Instead, publicly hand out $20.00, $50.00 or even $100.00 bills to deserving workers!
Think about it. Who usually gets your technician’s entire paycheck? That’s right- Mama! But handing out small “recognition bonuses” in cash gives your employee some “mad money” to spend as they wish! And that is powerful!
So how do you handle the employee’s tax consequences giving small cash bonuses? Just go ahead and pay these bonuses out of your pocket. So in effect the cash bonus is tax free to the employee! And yet you are covered with Uncle Sam since you have already paid the taxes personally. (It is still legal to give someone a gift!)
For example, in my 16 employee company I normally paid out around 2,500 bucks a year in cash bonuses. This worked out to around 200.00 a month split among 5 or 6 “extra effort” employees. It worked like this, “Wow, Charlie, thanks for working a double shift. Have some fun with this 50 bucks!” These small “recognition spiffs” paid off big time!
NOTE: When rewarding employees always lean toward generous bonuses and/or commissions instead of raising their base pay. Why? Because “a raise is forever” while a bonus/commission can be changed depending on the employee’s performance. Even better, a cash bonus is Immediate Gratification! (While a raise appears much smaller and has less impact on your employee.) And for you- just do the math on a 100.00 cash bonus versus giving your employee a .25 per hour raise. You are so MUCH better with the 100.00 cash bonus!
Restoration HINT: Your goal in restoration? To create Cheerleader Adjusters that will fight to get you in on the loss! How to do it? Focus on the traumatized emotions of the Insured! So split 2% of the entire loss amount among the team that worked the loss IF the Insured is delighted! And with no complaints! (I would include this Insured Cheerleader Bonus in their paychecks.)
Commercial HINT: What is your commercial goal? PRODUCTION! The more efficient your team is the more profit for everyone! So implement an Employee Efficiency Bonus among your commercial techs and watch those production numbers (and your profits) climb!