The pay structure for window film installers is probably one of the most talked about topics among owners in our industry. Do you pay hourly or commission? Having done both I can see the benefits of both sides for owners and installers as well.At the end of the day, there is no right or wrong answer, it's all about what will work best with the structure of your company.
If you decide to pay your installers on a commission, installers tend to be motivated to go fast so they can be compensated for it. Labor costs are set and can’t increase for the job, making it sound pretty good. Unfortunately, if installers are motivated by speed then it could affect other important attributes during an installation like quality and customer service.
Paying your installers on an hourly rate is another option. A pro of this option is that whether your installers are waiting around for a late customer or on a difficult job they will always be compensated fairly. On the other hand, whether they finish a job quickly or slowly, they still make the same per day so motivation may be difficult.
In addition to all of this, because we are in the great state of California, technically it is illegal to pay an installer on a commission only basis even if he or she makes 50k or 60k, which exceeds minimum wage. The reason for this is the state reports employees must be compensated for all of their duties while not installing (i.e. cutting film, talking to customers, driving to the job, etc) (See Gonzales vs. Downtown LA Motors). You can still pay commission but you have to track all hours including lunches and breaks first, then bonus the installers their total commission taking into account the hourly that's already been paid.
I guess it depends on where you are in the country and how your shop is set up. After debating this for years Solar Art decided on a hybrid system. Because we are in California we have to pay hourly, but we actually still tracks all of the installers square footage to see their efficiency. We make sure their hourly pay is in line with their production and we also bonus them on customer service and communication to ensure we motivate them to provide the best customer experience. It’s not perfect, but nothing is. Whatever commission structure you have, having the right employees is what really matters in the end.
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