The National : DRYCLEANER MAY AUGUST 2019
2 THE AUSTRALIAN NATIONAL DRYCLEANER & LAUNDERER MAY JUNE JULY AUGUST 2019 scale or 1 to 10, when he was out, he was a zero. Although his absence wasn’t usual, it also wasn’t an annual occurrence. I’d guess that it was some- thing that happened 2-3 times per month. Interestingly, he is the one that urged me to imple- ment an attendance policy. He shared with me the pol- icy of a major local employer for whom he once worked. During a 12 month period - three missed days, an oral warn- ing; three more, a written one, three more lead to an automatic 1 week suspen- sion and three more were the last three. Well, the attendance policy was good to have, but it wasn’t going to fix Paul’s alcoholism. You see, that’s why every 2 or 3 Mondays, Paul would call me with remorse already in his voice, minutes before his shift was to start. The key was that when Paul was in, he was really great, not just average. THE BONUS PLAN THAT WORKED FOR BOTH OF US Then came my brainstorm. At the time, Paul made $6.10 per hour. (it was a long time ago, so adjust for inflation please) He was one of my top wage earn- ers. He was worth more, in spite of that except for that key flaw. I called him into my office one day and said “Paul, how would you like to make $7 per hour?” His eyes lit up and his ears perked up. “Paul, here’s the deal. I will keep your base pay at $6.10 per hour, but if you arrive on time, work your full shift 7:00am until 3:30pm and work every day that you are scheduled, you will receive a bonus of 90 cents times the number of hours that you work.” That is, 40 hours times 90 cents - $36.00. This makes his effective hourly rate $7.00. The deal was that if he missed a day, came in late or left early (the last two were never an issue), there was no bonus. The cost for that missed day became very dear. Take a look: (and then do an exercise with your own figures.) 40 hours times $6.10 per hour = $244 Less 25% for tax withholding = $61 Net pay before bonus plan was put into effect = $183 With the bonus plan in place: 40 hours times $6.10 per hour = $244 90 cent per hour bonus = $280 Less 25% for tax withholding = $70 Net pay with bonus plan = $210 l Registered Insurance Broker l Qualified Practising Insurance Broker l Member of the National Insurance Brokers Association Suite 702, 251 Oxford Street, Bondi Junction. 2022. We offer in-depth knowledge of the Australian insurance industry and extensive experience of the insurance needs of business. Effective risk management and asset protection are crucial to the survival of your business. For a competitive quotation and report on YOUR particular insurance requirements, please, contact Geoff Cartwright today. Tel.: (02) 9387 6677 Fax.: (02) 9387 7272 email@example.com www.cartwrightinsurance.com.au “CARTWRIGHT's” have been arranging insurance for drycleaners and allied traders since 1972.
DRYCLEANER JAN APRIL 2019