Great employees will work hard for their employer. They will help their company grow and take pride in what they do. But that will only go so far. If an employee gives an extra effort and truly helps the company achieve their monthly goal isn’t that worth additional compensation? What if they go above and behind that goal and hit a known “stretch goal”? Isn’t that worth even more additional compensation? The answer is indisputably “yes”! At Motor City Spindle Repair we have (3) goals every month. Our monthly shipments that must be achieved for a monthly bonus. An increased bonus is paid if an additional percentage of shipments exceeds that amount by “x”. And a final additional amount is added to the monthly bonus if we surpass our “stretch goal”. The stretch goal is the amount of revenue we know when it is hit our company is 100% moving in the right direction. It affords us to buy additional equipment and add staff members. And right now as of August 29th 2017 it is helping us move into a new building that we are purchasing soon. This will put us in one of the nicest Spindle Repair facilities in North America to remanufacture cnc machine tool spindles. Our current building is great but we have had 400% growth in just under 4 years. We are out of space. We need more highly skilled positive minded employees and more equipment.
Why pay a bonus to employees? Aren’t they just doing their job that they were hired to do? Yes, they are. But we have found that employees with daily, weekly, and monthly goals that are paid incentives get more done in less time. They end up working less overtime and less weekends. Their take home pay at 40-45 hours a week is actually more compensation vs. working long hours for weeks upon weeks in a row. Long hours without weekends off only burns our technicians out. They get tired and make more mistakes when they work excessive hours. Especially when it is 6-7 days a week. But we do work OT and we do work weekends. It’s a team decision made by management and our team leaders and we rotate who works weekends. Because it is not forced upon anyone it really makes a huge psychological difference.
Paying our team to achieve a defined monthly goal really helps. It creates focus and we get more done. Everyone wins. Including our customers who get their cnc spindles quoted for repair much faster. Our competitors frequently measure the speed of their quotations in days or weeks. We measure our success in hours. Same with deliveries. It’s what has helped us grow our business.
Employers, if you want to see real success I highly recommend you pay your employees with incentives. Do the math. Set goals. Talk to your team. Have an open honest conversation about how to set this up. Take your time and do it right. Explain to your team that you may need to modify goals during a trial period. But be honest. Do not quickly raise the bar once goals are hit and the bonuses are paid. Don’t get selfish. Pay your employees. If you don’t full fill your promises you will kill all the momentum you created and lose the trust of your employees who are you most valuable asset. They will walk out the door on you.
Thank you for reading about us at Motor City Spindle Repair and our Winning Team. If you are interested in any of our cnc machine tool spindle repair services or would like to join our team please contact us at (734) 261-8600, Sales@motorcityrepair.com or fill out one of our online forms on our website at www.motorcityrepair.com.