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Mike’s Solo – Ditch Hourly Pay! How to 2X Productivity with Piece Rate

⏱️ 17:36 🎀 Mike Gore-Hickman
AUDIO EPISODE
Mike’s Solo – Ditch Hourly Pay! How to 2X Productivity with Piece Rate
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Chapters

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  • 0:00
    The Problem with Hourly Pay
    Hourly pay discourages productivity and process-oriented work, leading to painters slowing down on projects.
  • 2:08
    Piece Rate for Employees
    For W2 employees, structure compensation based on project hours, allowing them to earn more per hour by finishing faster.
  • 4:11
    Importance of Job Planning
    Detailed hour breakdowns per room/task are crucial for setting daily goals and empowering painters to achieve them.
  • 5:52
    Bonus Structure for Employees
    Alternatively, use a tiered bonus system based on how quickly and efficiently projects are completed, including quality incentives.
  • 7:07
    Piece Rate for Subcontractors
    Subcontractors are paid a fixed percentage of the total job, typically higher than employees due to increased responsibility.
  • 8:26
    Verifying Subcontractor Skills
    Always be on-site for the first project with a new sub to ensure they align with your company's quality and process standards.

Speakers

M
Mike Gore-Hickman
Host β€” founder of paintinggrowth.com

Key Takeaways

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Replace hourly pay with a piece-rate or bonus system to incentivize painters to increase productivity and efficiency.

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For W2 employees, estimate projects in hours and pay for the estimated hours, allowing them to earn a higher effective hourly rate by finishing early.

✦

Develop detailed job plans with hour breakdowns per task/room to guide painters, set daily goals, and track progress effectively.

✦

Implement a tiered bonus structure for employees based on project completion speed and quality, rewarding them for beating budget and achieving high satisfaction.

✦

When using subcontractors, pay a fixed percentage of the job (e.g., 40-45% for labor) and ensure they take on more responsibility like tool provision and site management.

✦

Always verify new subcontractors' skills and processes on their first project to ensure they meet your company's quality standards and expectations.

✦

Empower painters to conduct homeowner walk-throughs and be responsible for touch-ups (unpaid time) to foster ownership and direct accountability for project quality.

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