Pay Plans in a Company

This video reviews the key elements in a pay plan that's based on the company, the customer and the employee all winning, and thus aligning rewards and pay with performance expected by a company. You cannot throw money at a problem and expect behavioral changes, but a properly constructed pay system does align employees with what is defined and expected of them, and it rewards them for meeting those goals. Learn how to execute these pay plan concepts in this video.

Run Time: 42:07

Comfort Advisor Pay - Gross Margin Percentage

Here is a comfort advisor pay plan example to customize based on your gross margin percentages. A company may prefer to pay based on the actual margin, which is not our preferred method -- gross profit dollars are more in line with company goals -- but some managers embrace this and this example provides a tool to customize.

Comfort Advisor Pay Plan - Top Line Sales

These are sample pay plans for comfort advisors based on the top line sales produced in a given style of product position. The higher-end products produce a higher percentage of pay for the comfort advisor. A discounting policy is optional, but this example ties discounts to comfort advisors, which in turn shares the loss of gross profit by sharing the pain of the drop in price because commissions are shared against the reduction 50-50.

Sample Pay Plan - Customer Service Dispatcher

Utilize this document to support your company version of the pay plans for a CSR (customer service representative) or dispatcher functions. You can add in and customize any added bonuses or spiffs.

Performance-Based Pay for Installation Production

Learn about the fundamentals of productivity pay -- what many will refer to as performance-based pay. The idea behind performance pay systems is simple: align the workflow and the pay plans with the company interests of increased productivity. When it works well, quality is controlled, callbacks are minimized and productive employees can increase earnings rewards. The key concept is alignment, where all parties involved have the same vested interest. Controlling integrity and quality are important, and we discuss them inside these materials and templates for pay systems.

Social Styles Testing and Training - Maintenance Technician

Utilize this evaluation system for testing and training maintenance techs on social styles.

Performance Based Productivity Pay for Service

In this best practice, learn about the methods of service department productivity pay plans. Use the templates as a guideline for how you may want to structure your own performance pay systems for field techs and also the mid-management of the labor teams.

19 Page Document

Key Manager Shared Success Pay Plan

Key managers need to be set up to operate their own departments and they need to be paid accordingly, including the idea that the company prospers first. We refer to a 3-legged stool -- company wins, employee wins, and customer wins. This pay plan allows all mid-managers to share in the upside of success while making certain the company is paid as well -- and paid first.

Sales Manager Pay Plan

A sales management function is, by design, in effect to help improve sales personnel performance. The very nature of the job is coaching and development of the sales organization. The pay plan should align itself with the company culture, goals and, of course, the outcomes we seek.

Performance Based Pay Keys to Success

In the template find the materials needed to review with your team the key elements and considerations in performance-based pay.

9 Page Document

Performance Pay Example Payroll Form for Tracking

Use this example to create or organize your performance-based pay time card. Tracking labor is still a federal and state law for overtime, so we need to track all work hours. Several states have varying overtime laws, please check your local and state legal requirements to meet the standards for pay plans.

Performance Pay Time Card or Pay Ticket

Here is an example time card to be used for tracking hours, pay and production style pay.

Performance Pay - Installation Task Time Detail

In this template, find the various examples of installation task times. The various task times are broken into types such as gas furnace, A/C only, split systems, oil, hydronic and others, so as a team your production can define how long it takes to effectively complete any installation and be satisfied the production pay plan is fair and even generous to them.

Service Tech Example 1 - Productivity Pay Plan

This is a sample pay plan. It is a real life pay plan that is in use, but of course each company should modify to fit its own culture and state requirements if any. The goal is to provide a template to work from, including quality control and integrity as core values in the pay plan's use.

7 Page Document

Installation Performance Based Pay Plan

This plan is a sample installation pay plan based on performance. Ignore the numbers in the plan and focus on the structural elements of the plan itself. You can adjust the fiscal payroll numbers as you see fit with your company. The plan itself is based on task-based pay to reward productivity and focus accountability on quality and zero callbacks.

Sales Manager Spreadsheet for Shared Success

The shared success system is attached and has a spreadsheet designed to track the outcomes of the performance of the entire sales group and sales manager's compensation.

Dispatcher Shared Success Pay Plan

Use this tool to determine the CSR and dispatcher's role in the shared success pay plans for company success.

Spiffs and Compensation Examples for Technicians

This document is a sample of the types of rewards or pay plans that can be created for a technician who is selling accessories, yet also can be a selling technician. There are many forms of compensation, and the best approach is to establish a target from a budget, and create incentives for the selling arm of the company to reach those targets. Incentives can then be extended to a larger degree once a target is hit. This is where budgeting and goal setting can align into rewards and pay plans.

7 Page Document

Performance Based Pay-Install

Document outlines performance based pay plan for Installation departments along with recommend task times and corresponding pay schedule.

Plumbing Install and Service Performance Pay Plan

This plumbing performance pay plan can be used as an example -- build on it and modify your company version of the plan. The basics of the plan are consistent with all compliance issues, such as overtime and tracking hours worked, but offers flexibility in adapting the percentage or combination of hourly and task commissions.