Daniel HonanFounder, Profitable Painter CPA PLLC · I help painting contractors increase profits & cash flow while reducing taxes♦ Bookkeeping ♦ Tax

Painting Business Owners: Boost your #SmallBusiness - Learn the Power of #PerformanceBasedPay

Name: Painting Business Owners: Boost your #SmallBusiness - Learn the Power of #PerformanceBasedPay
Uploaded: 2023-08-25T13:30:23+00:00
Duration: 35 s
Channel: Daniel Honan
Description: In this instructional segment, the speaker explains performance‑based pay for painting contractors. Performance pay is presented as a system that rewards…

25 Aug 2023 · 1 min

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In this instructional segment, the speaker explains performance‑based pay for painting contractors. Performance pay is presented as a system that rewards painters or crews with bonuses when they complete jobs under the estimated budget. The process starts with using production rates during estimating to create a set of budgeted hours for a project. These budgeted hours are assigned to a crew lead, who then works to complete the job within or below that budget. By offering bonuses for beating the budget, owners can motivate crews to increase efficiency and improve profitability.

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What is performance pay? With a system to motivate your painters to work more by giving them bonuses when they finish jobs under budget. Performance pay is just recognizing painters or crews that beat budgets. When you are doing your estimates, you're using production rates and those production rates should be generating a set of budgeted hours for the project that you're estimating. You will give to your crew lead, they will then have that budget hours to work from to hopefully beat the budget. And what you can do is incentivize them to beat the budget by giving them bonuses when they do.