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Employee Comp.

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  • #16
    So, I gave my employee a mower so he could cut his grass.
    I am sure there are others that are considering doing this. If you could do it all over again, would you do it differently?

    Or if you see this might happen again in the future, how would you handle it?
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    • #17
      After MUCH CAREFUL deliberation I have come to this conclusion.

      He probably didn't think he was doing anything wrong or he would not have told me about it. I didn't tell him he couldn't and didn't have a no compete form. So I will let him continue this client. Make him and all employees sign a no compete form, but offer them the employee incentive sales approach so that they can go out ANYTIME and make extra money for them, me and the company all around win.

      If i had it to do all over again I would not do anything different i learned a valuable lesson and i think my approach will generate extra revenue in the future for my company while allowing employees to make extra $$. They will also make more with there hourly because the days and routes fill up faster and they get moved up faster. I always seem to turn a bad situation into a nice pile of dollar bills.


      • #18
        I do 4% of whatever the new customer spends the first year. We do it on upsells & added services too.
        Can you explain this a little more? Does this mean after the first year, you calculate a bonus for the employee based on that?

        Or how does that work?
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        • #19
          I am licensed, bonded and insured. We currently employee four people including myself. Hiring independent contractors in IMHO is a little strange. We all wear uniforms and drive company trucks. I am trained in horticulture and so are my guys. We are not hacks that simply walk off the street and mow grass. He does know the cost because I am training him to be a supervisor and to bid jobs. I don't want to run the whole company forever, besides soon it will be too big to manage on my own.

          Anyway I think I have a solution to the problem. I will provide a non-compete form but offer him a sales incentive program so he can make extra cash and build the company. Win win. Now the questions is what to offer him. how Much?

          Any Ideas?

          non compete forms are not worth the paper they are printed on unless you are dealing directly with a employee that stole a bonafide customer away.

          i been at it long enough to know that as a landscape laborer your income is limited and has a low ceiling and if your laborer needs to make extra income his choices are work OT if you got the work to allow that, get a second job or find a better paying job.
          if he is a good worker and you want to keep him around and you can not afford to pay him more or give him OT then the next best alternative is to give him some side work with things you can't be bothered with.

          the ground rules have to be he does it on his own time and it does not get between his responsibility working for you and also make it clear that you are refferring him so you will not be responsible or connected to anything he does in any way shape or form.
          and if it leads to a large job then it comes right back and if your caught, your fired.

          any time you hire someone it is a given that you are going to invest a lot of time and money into them and when they feel they know it all they will go off to start their own business and just walk away.

          i had 5 guys in total so far over the years that i basicly taught everything they know from scratch that went on to start their own businesses in my area.
          i compete with them often and i keep in touch and have a working relationship still with these guys today and there are lines that they will not cross to keep the peace.

          i must have taught them well because their businesses are all doing outstanding and each have at least 4 to 6 full time employees

          as for the mower issue, if you gave it to the dude straight up then it is his mower and what ever he does with it after the fact is his business.


          • #20
            sorry, i just realized this thread was 6 months old.

            ha ha i feel stupid.


            • #21
              Don't feel that way. All of these posts deal with issues that are as important a year ago as they are today. So any thoughts you can add to them will surely help someone who finds themselves dealing with such a situation.
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              • #22
                I have dealt with similiar situations in the past. And what I have found out that in most cases the said person is out mowing houses on the side on and off business hours . In the end they were let go. I have even recieved complaints from customers that were not contracted through us and had to explain to them they negotiated there own deal. In the end I have had to walk away from the customer and employee.
                Good Luck


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