How To Pay Water Restoration Technicians

The best compensation system for employees is a topic every business is interested in, and restoration business owners are no exception.

Owners want to pay employees fairly and want the way employees are compensated to motivate them to do their best. 

Employees seek to be paid as much as possible, need predictable paychecks, and want to understand how their efforts translate to earnings.

So, as an owner, creating an effective compensation system for restoration technicians means delivering competitive pay, consistent base pay, strong motivation, and clear paths to increased earnings.

Compensation Programs vs. Bonus Programs for Restoration Businesses

Paying water restoration technicians correctly is very important for keeping turnover low and morale high. 

The word ‘bonus’ is on the tip of every employee’s tongue. Companies often provide opportunities for bonus compensation, only to find that soon employees no longer view the pay as a bonus to be earned, but expected compensation. 

The motivation and excitement fades quickly, and what’s worse, this approach can create an artificial ceiling on performance and imply that exceptional work is something “extra” rather than the standard.

So, what is the difference between bonuses and other compensation strategies? A specific short term goal that a company wants to achieve may have bonus compensation associated with it. 

This creates excitement and a focused team effort aimed at exceeding the goal. Everyone wins!

If there is an expected output that is going to exist indefinitely, it should be a part of the regular compensation program and should be managed as one of the employees Key Performance Indicators. 

It would be a mistake to create a bonus for achieving that long term output, since employees naturally seek consistency in their pay, and after a few months, they begin to view bonus pay as part of their baseline income. 

When they don’t receive it, they see it as losing part of their regular pay rather than missing out on extra earnings.

The Role of Compensation Strategies in Employee Motivation

Compensation can motivate employees when their production affects their pay, which can include commission pay systems. 

While employees need consistency in pay, and it may seem desirable to have a commission-only system, this can create higher rates of turnover due to the variability so common in the volume of restoration work available.

Consider a base hourly rate plus commission to help smooth out the peaks and valleys for technicians if you like the idea of commission based compensation. 

Alternatively, you may consider hourly plus compensation for certain profitable activities such as equipment usage.

Many companies provide pay increases for employees that successfully complete additional training or certification. When technicians complete in-house training, they can be rewarded with a higher pay rate – for example, completing self paced training from ReetsTV qualifies them for an hourly rate increase. 

This training is proven to increase the profitability of the work that a restoration technician completes, resulting in more profit for the restoration company. Again, everyone wins.

Compensation strategies that motivate are always simple and the employee can clearly see how their efforts connect to their compensation.

How Compensation Practices Support Organizational Growth

As you grow, you need to be able to attract new employees. Your compensation system needs to be simple and easy to understand, so restoration technicians can clearly see the connection between their actions and their earnings. Unclear metrics only serve to confuse and demotivate staff.

Compensation systems should give employees a good idea of how much pay they should expect during each pay period. 

Remember, they have bills that come every month so they deserve to have full confidence that the pay you are offering will meet their needs. If they don’t have confidence, they won’t work for you. Slow hiring means slow growth.

To keep the system effective, it needs to stay fresh in employees’ minds daily. Create visual reminders of progress, such as whiteboards or digital displays that track performance metrics. This helps employees see how their efforts directly connect to their compensation.

Consider implementing a 90-day evaluation cycle – this timeframe provides enough data to assess what’s working while maintaining flexibility to adjust course if needed. If certain metrics aren’t driving the right behaviors, you can modify them in the next phase.

Restoration companies recognize that IICRC certification courses from Reets Drying Academy are a great way to increase profitability, quality of service, or qualify for insurance related work. They may reward employees for completing IICRC WRT, ASD, AMRT or Health and Safety certifications.

Importantly, have your accountant review any compensation strategy before implementation to ensure compliance with overtime and minimum wage requirements. Labor-oriented roles typically can’t be placed on a fixed salary without losing overtime pay eligibility, so getting the structure right from the start is crucial.

Bonus Programs focused on Restoration Company Goals

If you have specific goals that need focused effort for your team, wrap them in a bonus compensation program. Bonus programs are designed to focus attention and compensate for achievement. The duration of the effort is a factor. 

If the desired result will become a new standard in output, bonus programs won’t work well. If you’re aiming for a short-term or one-time result, bonus programs are exactly the compensation approach you want for restoration technicians.

The key to any successful bonus program lies in clearly defining easily measurable results. Everyone should understand the desired outcome, how it’s measured, how they can influence it, and what they’ll earn.

Better Compensation Leads to Better Performance

When people feel comfortable that their hard work is being rewarded with fair pay, they will give their best effort. Any lack of confidence in receiving fair compensation for performance will be met with a similar lack of effort.

Compensation systems that link pay to performance will best motivate restoration technicians, reduce turnover, and boost morale.

Confidence and performance go hand in hand. Make sure that your compensation program provides:

• Competitive pay
• Consistent base pay
• Motivation
• Clarity around compensation opportunities

Conclusion

We work because we need to make a living. It is a basic human need. Whether you are a business owner or an employee you want to make the best living you can for the time you dedicate to work.

Restoration companies are most successful when they draw new employees with consistent and competitive pay opportunities. 

Employees stay when they have confidence that their efforts are rewarded with fair pay. Use extreme caution when making changes to compensation, as these changes can erode confidence and create anxiety – the opposite of what you hope to achieve.

Performance peaks when there are clear connections between pay and performance, while maintaining security through base pay during slow times. Use bonus programs as they’re intended: to create focus, excitement, and energy for achieving short-term goals.

Want your water restoration team to be working at their best? Water restoration classes from Reets Drying Academy are a great way to increase the professionalism, profitability, and work quality of water restoration technicians. 

Check out our Course Schedule and book a course to get started with Reets Drying Academy, the #1 restoration training academy in the world!