Web Extra: Hourly raises are rising

Kevin McHale, owner of McHale Landscape, says it took “a shift from the paradigm” to get his field employees to understand the value of an incentive program—particularly one that’s tied to company performance. In many employees’ minds, hourly pay trumps all, even a 401(k)-matching program, he says.

“In our industry, everything is gauged and valued at what you get paid per hour,” he says. “It’s tough to change the thinking that it’s not about what you get paid per hour, it’s about what you can earn for the company and what the company will share with you.”

With the current labor crunch, McHale says the industry is faced with having to hire employees at a higher hourly rate than ever before. On top of that, his company has multiple employees who have been with the company for 20-plus years, meaning they’ve maxed out their hourly rate.

“We need programs that are based on profitability, not just an hourly rate,” he says. “Employees are not going to be able to get paid more per hour. The market just won’t allow it.”

To read the full story from the August 20017 issue on incentive programs, click here.