This is a short YouTube transcript excerpt in which Mike Andes explains his P4P (Pay for Performance) compensation model for landscaping crews: employees earn a percentage of labor revenue generated on-site each day, so non-productive activities (drive time, gas-station breaks, smoking) reduce their take-home pay and create incentives to work more efficiently.
Hey, Mike, landscapers on Facebook are debating paying less for drive time than on the job. As a lawn care millionaire, you only pay people on the job site. So what are your thoughts?
Yeah, we use a model called P4P, or pay for Performance, where essentially, if they want to make more money, they can because they're getting a percentage of the labor revenue that they earn for the business every single day. Now, labor revenue is only earned on the job site. So if they want to be more efficient, they've got to figure out how to cut out, waste out of drive time, take taking breaks at the gas station, smoke breaks, all that stuff. It's really up to the employee in terms of how much money they're going to earn for the day and how efficient they're going to be.
