Mike Andes walks through setting up a pay-for-performance system, starting with accurate budget hours to avoid overpaying or frustrating staff. Sync HomeWorks data with P4Psoftware.com to auto-import hours and rates, then pitch it to employees as an upside-only opportunity with real-time earnings visible in the mobile app.
If you have not done budget hours, you're basically asking for a mutiny in 3 to 6 months when they think that budget hours are off, you're screwing them on money, you're not estimating jobs correctly, et cetera. Personally, I would just make sure that what you're paying them per hour is less than or at what your base pay on P4P is going to be down the road. Here's this new thing where you can make more money and there's no downside. Now the pro— yeah, the problem is if you start paying them $25, $26 an hour, for example, and they're like, all right, base pay on P4P is $22. They're gonna be like, whoa, whoa, whoa, there's downside here. And so I would just focus on budget hours and you can track it like getting in the software. This is all big rocks I want you to focus on. So when you do P4P, you're confident because like budget hours are accurate. You already know their approximate efficiency score. You already know what your top performers produce in a day. You already know that your estimating is accurate. You could even connect HomeWorks to P4Psoftware.com without them even knowing, bring all the data automatically with the sync and just be tracking all their— like even if you did, I've done— there's actually a couple of people doing that. They're not paying their employees by P4P, but they do it. They sync all the data over to P4P so they can have a really easy dashboard of who's the most efficient employee. And it's the only reason they use it, because they just bring over the budget hours, it brings their base pay over, it brings all their clock times and everything over automatically.
Also, like, I was thinking, if I didn't know my budget hours that well, what I could do even with the P4P software is just put like the total amount of revenue and then just, you know, 33%, uh, you know, whatever it is.
Yep, that's called simple mode. Exactly. That's simple mode. Yep.
Like, but you're saying still just don't just figure it out completely on budgeted hours.
How I would pitch this is like, hey guys, this year I'm trying to figure this thing out. I wanna be able to pay you more. I wanna pay you based on how hard you work. Here's what our base pay is gonna be, but by the end of 2026, I'm gonna figure out a system that if you work harder, you can make more money. Okay. This, this system is only upside for you. And now you log into P4P as you complete jobs and homework, you're gonna see how much money you're making in live time inside the P4P mobile app.
