How do you handle unreliable employees in a home service business?
Hello! I run a Home Remodeling & Handyman business, and we're excited to share that we've recently expanded to include a Cleaning Division. We've noticed that in our area, many folks are eager for jobs but sometimes lack the commitment to follow through. How do you navigate this challenge? We've already offered competitive pay, which is quite high for our area, yet issues like poor communication, missed appointments, and subpar work still pop up. I'm curious to hear how others have managed similar situations and what strategies you've found effective—whether it's offering career growth opportunities, enforcing strict communication policies, or even increasing wages further. Any advice or ideas would be greatly appreciated!Thinking about performance pay but don't know where to start?
I run into a lot of owners who want to set up performance pay and don't know where to start. My answer is always the same: figure out your labor cost first, then build everything down from that number. Labor cost is your tech wages divided by revenue. For HVAC and plumbing, around 20% is healthy, for landscaping and window washing, anywhere from 30-35% is healthy. Find the weekly revenue each tech needs to hit that number. Example tech at $35/hour: $35 x 40 hours = $1,400 weekly wage $1,400 / 0.20 = $7,000 weekly revenue target Under $7,000, he gets his hourly. Over $7,000, he earns a bonus on every extra dollar. Keep that bonus rate at 20% or less and the bonus never pushes your labor cost past 20%. His production goes up, he takes home more, and as long as your bonus rate is under 20%, his labor cost percentage goes down. Once you know your number, you can layer in tiers and spiffs without guessing. Do you know your labor cost percentage off the top of your head? And if you're already paying performance pay, what does your structure look like?If you have to give up more than you want, are they the right person to hire?
I have a guy that I worked with in the past that I always told, when I start my own company I want him to work for me. He was smart, articulate, hard working and a quick learner. Now that my company is a reality, I reached out and he wants way more than I am willing to pay, and he is making it really hard to convince him to come over. I always thought he would be a great addition to my team and I always had a position in mind for him, something he could grow into. Where he is now is a dead end but with me, the sky is the limit. I wonder, is he the same person I knew when I was managing a team for another company? Should I be offering him more? Are his requests unreasonable or are my offerings unreasonable? Is he even the right person if he is going to ask for more than he knows I am willing to offer.Should I hire employees or use 1099 subcontractors for better quality?
We have 6 subs full time and it's burned us a few times. We go behind them on ~25% of jobs. We just got CompanyCam and that'll help operationally. But, I am considering going the employee route and paying hourly. What do you feel works best -- to maximize profitability, ensure quality, and reduce headaches?How do you train admin to think critically instead of just following a to-do list?
When I hired my first virtual assistant to take on some administrative tasks that run the business, it took me about 6-12 months to find the right training and tools to teach him how to do the processes. realized that I didn't just want a worker waiting on a todo list everyday, but I needed someone who could make critical thinking decisions. And then my training changed from to do lists, to showing him how to think and why, and allowing him to make some decisions to build his confidence and trust. Do any of you have any training tips for your admin staff to strengthen the processes?What kind of employee bonuses are you offering your team?
I recently listened to this Masters of Home Service episode with Cory Byron (WiringByron). It got me thinking, how are you all handling employee bonuses? Has your current approach improved team performance, or have you faced challenges? Share your experience below! Give the episode a listen if you want to learn about: Building a simple bonus system that's easy to manage Common issues a bonus plan can address How regular communication keeps your team motivated Never miss an episode of Masters of Home Service. Subscribe on Apple, Spotify, or wherever you get your podcasts.
How to compensate employees for mileage and drive time between jobs?
Howdy y'all, we're looking for new and/or experienced cleaners in Austin, TX and given the expanse of our service area (drives could be up to 50 miles) I'm trying to source cleaners who live in all four quadrants of the Greater Austin area. [Any recommendations of folks who would make great employees in my area, please shoot me a message!] Understanding that there are a multitude of ways to compensate for mileage or drive time, I'm curious who has found a balance between efficiency and cost. Say a cleaner does 3 cleans in a day and goes directly from home to their first job, and from the last job back to home. Those first and last are 'commute' drives, so we could calculate either a) the distance between jobs 1, 2, and 3, and pay per mile , or b) record the time of arrival at job 1 and the time of completion at job 3, and instead of paying per mile offer an extra $1 or $2 per hour rate so that it is all encompassing. Love to hear your thoughts - thank you!
