Performance Based Employee Compensation
Chad Brown
Florsheim Properties
Modesto, California
209-576-0262
This past year we noted some inconsistency in the maintenance of the grounds for various
apartment properties. Some were cleaner than others. One property shined while others
were lacking. Some employees seemed self driven and motivated by pride in the
appearance of the property, while others seemed to plod along just to finish the day.
This summer we made a major shift in the way our grounds personnel are paid, to reflect
a higher standard of property appearance. The base wage was reduced to a level just
above minimum wage. In addition, we added a monthly performance-based bonus that is
earned according to the score on a monthly inspection. Poor performance earns no
bonus. Acceptable performance yields wages equivalent to those paid before the change.
Exceptional performance indicates that the employee is using initiative to go beyond the
mark and is paid at a rate well above levels paid prior.
The results are exactly as we had hoped… Each property has risen considerably in
appearance and curb-appeal -- (Even the property that had been our consistent standout).
Our best performers are earning well beyond their previous wage and consistently use
their own initiative to do even better. (The property always benefits far beyond the
incremental cost of the additional wage!) Those who need encouragement receive
regular feedback and are beginning to take some initiative.
Our higher set of expectations achieves better performance from all employees.
However, if one player doesn’t carry his or her load, this compensation method provides
a natural weeding-out process. Low wages encourage employee turnover for under
performers. Low scores on monthly inspections and evaluations provide documentation
to justify termination of an employee who is not meeting expectations.
As a result, we are seeking opportunities to implement performance-based wage plans for
other positions within our organization, to improve and reward individual efficiency and
outstanding performance.