Last month we addressed using piecework to maintain a profit-producing, “win-win” pace for each member of your crew. Piecework is the simplest method for measuring and rewarding individual performance. Your jobs get done faster, your employees make more money and you make more profit.
Typically, you need only take the labor hours for each item on your estimate and mathematically determine how much of that labor or labor burden your company will cover. This can vary from 10–30 percent. You should always discuss these company costs with the pieceworkers to be certain they believe they’re getting a fair deal. Then you simply need to count or measure what they perform each day and keep score.