This is always debatable but what works for us is 35% available commission to the Team Leaders broken down by;
· 25% of total revenue generated minus the cost of hourly labor of all his helpers.
o Ie. a $800 8hr. day pays the team leader $200 - $80 (helper at $10/ hr) for a total pay to team leader of $120
· 10% bonus available for the following achievements – This is tracked by and paid every 2 week per pay period
o 6% bonus paid for customer satisfaction of clients and staff. No complaints from jobs performed (random surveys performed by office staff). No complaints from office staff (ie. paperwork properly filled out, company policies and procedures followed)
o 2% bonus paid for dependability of team (Team Leader and his team members arrived on time daily.) This helps puts the management of the employees on the Team Leaders.
o 2% bonus paid for vehicle and equipment management. A checklist is used to inventory and inspect equipment as well as maintain the exterior and interior of vans clean and professional looking
When a Team Leader receives full bonus in the scenario above his pay for that day goes up to $200. ($800 revenue x .35 - $80 labor = $200) In this example a Team Leader earns $25 per hour and his helper / trainee earns $10 per hour.
Our direct labor costs always remain at 35%
This may not be the perfect set up but is currently producing reliable and profitable results with little employee turn-over.