Any small companies do profit sharing?

RyTheTreeGuy

Well-Known Member
Location
Canada
My business partner and I run our small tree company so I can not speak to profit sharing from a employer/employee perspective, but we have recently (within the last year) been offering a 10% referral fee to local home builders, contractors, pool companies and landscape companies and we have never been as busy as we are. We are actually getting more work then we can handle and are starting to sub work out to other local companies that we have a good relationship with. Best 10% we have ever spent
 

Reach

Well-Known Member
Location
Atglen, PA
Do you base your bonus on how much over you guys go? Do you do a certain percentage of your weekly income for the bonus?
The weekly is actually a restaurant gift card for each crew member, usually about $25 each. I polled the crew to see what they would like, offered a couple suggestions, i.e. Gift card, check, Pizza/burger party, or whatever they might like. Hands down they asked for gift cards, but they had the choice.

This was a suggestion from my business coach as a way to boost production and increase employee morale and ownership, and it seems to have worked. Giving them them choice is the key though, if you don’t this can backfire on you if you give them something they don’t want.
 

Gareth's Tree

Active Member
Location
Ashtabula
The weekly is actually a restaurant gift card for each crew member, usually about $25 each. I polled the crew to see what they would like, offered a couple suggestions, i.e. Gift card, check, Pizza/burger party, or whatever they might like. Hands down they asked for gift cards, but they had the choice.

This was a suggestion from my business coach as a way to boost production and increase employee morale and ownership, and it seems to have worked. Giving them them choice is the key though, if you don’t this can backfire on you if you give them something they don’t want.
How big is your crew?
 

Reach

Well-Known Member
Location
Atglen, PA
Doesn't really seem like that should be so hard does it...
No, it doesn’t seem like it, but it sure is! And this government subsidized unemployment makes it that much worse, with all these people sitting at home getting paid more to not work than they did working! We pay pretty well too, but still can’t seem to find any good applicants.
 

Sfoppema

Active Member
Location
Central MA
Weekly bonus is a little tricky though if your sales goal is a set number. What if you or your sales person botched some estimates making it essentially impossible for the sales goal to be met no matter how hard everybody works? Not really fair to reward or not reward guys who are working hard if the fault or credit lies with the estimator.

Or vice versa if you have a week of jobs you knew you juiced a bit and the crew skates easily to the sales goal. More the sales person that got the goal met.

Been trying to put the juice on more recently. Always puts a smile on your face when you're working for better money and it's infectious. I try not to let the crew in on if the job was underbid, because then they can tell that I'm annoyed and it ends up just generally being bad for moral.

Bonuses are good. I don't really give them except on maybe a birthday or Christmas for sure. If they're crushing it I'll spend more time teaching them something, which is probably more expensive for me than a cash bonus would be, and they're generally excited about it. Or give them a raise....I buy dinner/beers and shit like that here and there. Can't be cheap if you're trying to keep hard working people.
 

Gareth's Tree

Active Member
Location
Ashtabula
Not sure how profit sharing would work and I'm intrigued to see if anyone has something good to say about it for small company
Yeah, I'm interested to hear what people have to say as well. The problem I run into is I have to really good workers, but our work season up here in Northeast Ohio is only about 35 weeks a year, to try and support guys full time on a 35-week work year is not easy. So even if I pay them a really good hourly wage the 3 months they're not working every year can really be a problem... I thought profit sharing might be a way to have them try and make the company more profitable, while helping them get some more money, but I wasn't really sure how it would work out.

I agree with what you said about estimating the jobs. I usually do the estimating but, if I goof up, then yeah, we would potentially not be able to meet a goal for the week...
 

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