| Portable Restroom Operators Consider "Pay per Service" |
Interest in “Pay per Service” programs seem to be on the increase as business owners/managers tackle
multifaceted issues including, driver retention, enhanced productivity and the ability to offer employees the ability to
generate a higher than average income. While incentive compensation is not new, it is viewed as less than
contemporary forms of compensation such as standard compensation programs such as hourly or salary.
In simple form, “pay per service” compensates a driver for each service conducted during the course of a
designated route. For this to be successful it is necessary to determine what a completed service is. What steps are
involved, including, a method to determine the validity of a customer complaint. Generally a driver would not be
compensated for a service call that resulted in a complaint.
Complaints come in all forms with some being justified and others unjustified. Possibly an overuse condition exists
or outside factors promote a customer to complain but the service technician had completed the service as
required. The ability to determine and categorize the complaint in general are the determining factors dictating
payment to the driver. Many companies are using Global positioning systems and tracking the movement of service
vehicles which provides readily available information to management that the truck and driver were or were not at
the location. Others have taken additional steps including tracking when a pump is engaged and how long it runs as
a more concise measurement. Whatever system is employed, the use of date stamping seems to be at least a part of
the system.
Determining a per service rate involves factors such as route density, the establishment of a labor factor for service
and what is included as part of service. Truck maintenance and proper logging could be included deeming a higher
per unit pay. Some companies utilize a set system that starts a trained driver off at a rate (example $1.75 per
service) and moves payment up according to years in service.
In any usage of this form of compensation an hourly wage is usually established for work needed outside of the
normal scope of service and issues such as mechanical problems or flat tires that are beyond the drivers control.
For the most part, pay per service veterans have each service broken down to an actual dollar figure for
performance. Examples might include payment of $5.00 for delivery, pickup or relocate of a unit during the course
of running a route. There is also reported success with the program that pays a higher per unit rate which includes
the above-mentioned items. One operation explained that after calculating a cost of $3.00 a unit labor cost to
service a portable restroom they structured their program paying a rate of $2.50 amounting to a significant savings
to the company. Immediately, they discovered that service technicians increased the quantity of services performed
amounting to a significant increase in individual compensation. The company sites that drivers are earning 20-70%
more than prior to implementing the program.
Incentive programs provide latitude in promoting programs that are important to each business but may not
necessarily be universal to all companies. For example, a company may choose to pay a set bonus price for a week
with zero complaint or for taking an order for additional service or placement of a unit on a site.
In maintaining fairness there may be penalties imposed for accidents that cause damage to either a vehicle, portable
restroom or property belonging to others. These are usually pre established and not arbitrary.
Vacation days and holidays can be calculated in a number of fashions including a simple hourly rate or achievement
of bonuses designed to enhance a company’s particular goal.
The biggest problem sited by companies attempting to transition to pay per service is the desire of service
technicians wanting the best routes with the highest density. Generally the response is to provide the best routes
according to seniority or performance. The coveting of better routes creates a shareholder attitude with the service
technician as he or she protect the route and has more to lose when losing business and more to gain when more
work is added to the route.
Companies site drivers making 40-$50,000 per year while the business benefits from lowering the actual labor cost
of each service. Three companies sited that this type of compensation plan has created a situation making it easier
to attract good quality help while turn over is no longer an issue. Many site the program as giving a competitive
edge over competition, paying contemporary, hourly/salary plans.
Rather than a drop in quality control, “pay per service” enthusiast site better quality control, better communication
and less management. Quantity of people and vehicles reduced. Proponents also state that the system creates a win-
win situation for everyone. Quality control can be utilized as a tool to increase productivity. A service technician
who wishes to maintain their route would be required to be held to a higher level of performance.
Another company shared some of the stipulation for a service technician to hold on to their route. They are
measured by performance.
“Employees who fail a route inspection will not be eligible for weekly bonus pay, (this company refers to pay per
service as bonus pay and does have an hourly rate system that can be utilized and would be legally implemented to
assure compliance with guidelines) Management cannot reward poor work.”
“Any employee found marking his route sheet, but not dating a sticker or cleaning the unit, will be ineligible for
bonus. The employee will also be written up, and have their pay corrected. On the second offense, the employee
may be dropped down to hourly pay for the entire week the infraction occurred. In extreme cases, management
reserves the right to invoke this penalty on the first offense.”
“Any employee who does not list times on their route sheets of when the units were actually serviced will not be
paid for the entire stop.”
“Employees who consistently do not clean to standards will not maintain their service technician positions. Service
technicians who do below average work may be forced to surrender higher paying routes to employees who do
higher quality work when routes come up for bid to the review board.”
For this company, a unit not dated is considered not serviced and the driver would not be compensated for it. If a
unit cannot be serviced, it is required that in order to protect the driver that he or she communicates the issues with
dispatch so that the problem can be resolved.
As with any story appearing in the Journal we attempt to give as much fact as possible but encourage the use of
appropriate experts and governing agencies to determine the legalities of any compensation program. The
information gathered for this story was from veteran portable restroom contractors known for professionalism in
their field.
multifaceted issues including, driver retention, enhanced productivity and the ability to offer employees the ability to
generate a higher than average income. While incentive compensation is not new, it is viewed as less than
contemporary forms of compensation such as standard compensation programs such as hourly or salary.
In simple form, “pay per service” compensates a driver for each service conducted during the course of a
designated route. For this to be successful it is necessary to determine what a completed service is. What steps are
involved, including, a method to determine the validity of a customer complaint. Generally a driver would not be
compensated for a service call that resulted in a complaint.
Complaints come in all forms with some being justified and others unjustified. Possibly an overuse condition exists
or outside factors promote a customer to complain but the service technician had completed the service as
required. The ability to determine and categorize the complaint in general are the determining factors dictating
payment to the driver. Many companies are using Global positioning systems and tracking the movement of service
vehicles which provides readily available information to management that the truck and driver were or were not at
the location. Others have taken additional steps including tracking when a pump is engaged and how long it runs as
a more concise measurement. Whatever system is employed, the use of date stamping seems to be at least a part of
the system.
Determining a per service rate involves factors such as route density, the establishment of a labor factor for service
and what is included as part of service. Truck maintenance and proper logging could be included deeming a higher
per unit pay. Some companies utilize a set system that starts a trained driver off at a rate (example $1.75 per
service) and moves payment up according to years in service.
In any usage of this form of compensation an hourly wage is usually established for work needed outside of the
normal scope of service and issues such as mechanical problems or flat tires that are beyond the drivers control.
For the most part, pay per service veterans have each service broken down to an actual dollar figure for
performance. Examples might include payment of $5.00 for delivery, pickup or relocate of a unit during the course
of running a route. There is also reported success with the program that pays a higher per unit rate which includes
the above-mentioned items. One operation explained that after calculating a cost of $3.00 a unit labor cost to
service a portable restroom they structured their program paying a rate of $2.50 amounting to a significant savings
to the company. Immediately, they discovered that service technicians increased the quantity of services performed
amounting to a significant increase in individual compensation. The company sites that drivers are earning 20-70%
more than prior to implementing the program.
Incentive programs provide latitude in promoting programs that are important to each business but may not
necessarily be universal to all companies. For example, a company may choose to pay a set bonus price for a week
with zero complaint or for taking an order for additional service or placement of a unit on a site.
In maintaining fairness there may be penalties imposed for accidents that cause damage to either a vehicle, portable
restroom or property belonging to others. These are usually pre established and not arbitrary.
Vacation days and holidays can be calculated in a number of fashions including a simple hourly rate or achievement
of bonuses designed to enhance a company’s particular goal.
The biggest problem sited by companies attempting to transition to pay per service is the desire of service
technicians wanting the best routes with the highest density. Generally the response is to provide the best routes
according to seniority or performance. The coveting of better routes creates a shareholder attitude with the service
technician as he or she protect the route and has more to lose when losing business and more to gain when more
work is added to the route.
Companies site drivers making 40-$50,000 per year while the business benefits from lowering the actual labor cost
of each service. Three companies sited that this type of compensation plan has created a situation making it easier
to attract good quality help while turn over is no longer an issue. Many site the program as giving a competitive
edge over competition, paying contemporary, hourly/salary plans.
Rather than a drop in quality control, “pay per service” enthusiast site better quality control, better communication
and less management. Quantity of people and vehicles reduced. Proponents also state that the system creates a win-
win situation for everyone. Quality control can be utilized as a tool to increase productivity. A service technician
who wishes to maintain their route would be required to be held to a higher level of performance.
Another company shared some of the stipulation for a service technician to hold on to their route. They are
measured by performance.
“Employees who fail a route inspection will not be eligible for weekly bonus pay, (this company refers to pay per
service as bonus pay and does have an hourly rate system that can be utilized and would be legally implemented to
assure compliance with guidelines) Management cannot reward poor work.”
“Any employee found marking his route sheet, but not dating a sticker or cleaning the unit, will be ineligible for
bonus. The employee will also be written up, and have their pay corrected. On the second offense, the employee
may be dropped down to hourly pay for the entire week the infraction occurred. In extreme cases, management
reserves the right to invoke this penalty on the first offense.”
“Any employee who does not list times on their route sheets of when the units were actually serviced will not be
paid for the entire stop.”
“Employees who consistently do not clean to standards will not maintain their service technician positions. Service
technicians who do below average work may be forced to surrender higher paying routes to employees who do
higher quality work when routes come up for bid to the review board.”
For this company, a unit not dated is considered not serviced and the driver would not be compensated for it. If a
unit cannot be serviced, it is required that in order to protect the driver that he or she communicates the issues with
dispatch so that the problem can be resolved.
As with any story appearing in the Journal we attempt to give as much fact as possible but encourage the use of
appropriate experts and governing agencies to determine the legalities of any compensation program. The
information gathered for this story was from veteran portable restroom contractors known for professionalism in
their field.
The Sanitation Journal is a monthly trade publication that caters to the portable restroom industry. Each month
thousands of portable restroom operators utilize information from the Journal to aid in business decisions.
Subscribe today and make sure you never miss an issue.
thousands of portable restroom operators utilize information from the Journal to aid in business decisions.
Subscribe today and make sure you never miss an issue.
Portable Restroom Operators investigate varied compensation programs to stimulate quality service and justify
higher pay for service technicians
higher pay for service technicians
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and portable restroom service truck to learn
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and portable restroom service truck to learn
about the latest additions to PolyPortables
full line of portable sanitation equipment
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