Learning More About Performance-Based Pay

HVAC technician paid by performance-based pay

June 16, 2022

The Charlie’s Tropic Heating & Air Conditioning team is always looking for ways to improve the lives of our customers and our employees. That’s why we’re proud to offer a new payment system for our team members that can help them excel in their positions – and improve their finances.

Aside from ensuring Jacksonville, Florida homeowners stay safe, healthy, and comfortable in their homes year-round, we also want to know our HVAC installers are thriving. As part of the team at Charlie’s, they get the opportunity to learn, make more money, and help our company grow each year. Let’s take a look at one of our new payment systems – performance-based pay – and what it means for our team members.

What is Performance-Based Pay?

Performance-based pay (PBP), also known as piece rate pay or piecework, is a payment system that pays installers by the amount of equipment they install  each week. For instance, the more HVAC systems you install in customer homes, the better your paycheck will look at the end of each pay period.

Rather than hourly pay structures which pay based on how long you spend on-the-job, PBP rewards you for how well you get the job done – and how often. Charlie’s Tropic HVAC installers with a high degree of efficiency can reap the benefits of their experience under such a system. In other words, the higher quality the installer, the greater the rewards they’ll receive from the company they work for.

The Benefits of PBP

As an installer, you can gain a better understanding of your pay each week based on how many units you install. Plus, you may be able to earn more money each week by increasing your productivity. This means you’ll be able to control your finances in a healthier way and have a greater appreciation for the work you perform each week.

Another benefit of performance-based pay is that production managers won’t have to worry how long installers take on their jobs. Also, estimators at Charlie’s Tropic Heating & Air can more easily account for labor when quoting, which potentially increases the number of profitable jobs they can pick up each month. As a result, companies can improve their teams’ training, vehicles, equipment, morale, and salaries.

Industries That Use PBP

If you’ve never heard of performance-based pay, you might be surprised at the number of industries that prefer to pay their employees this way. Some of the industries that use PBP include:

  • HVAC
  • Manufacturing
  • Carpentry
  • Plumbing
  • Auto repair
  • Jewelry
  • Paint
  • Plumbing

At Charlie’s Tropic Heating & Air, we’re always excited to try a mix of payment structures to ensure our installers receive the pay they deserve for a job well done. To learn more about performance-based pay, head over to the Join Our Team page or stop by one of our upcoming open house events!

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