PPS is described as a “new program that allows air conditioning, refrigeration, and plumbing contractors to compensate field employees based upon speed, accuracy, and performance, while at the same time improving profits for the company.”
Mike Hajduk, president of Callahan/Roach, said he believes PPS is the first of its kind in the industries.
“There are other programs but they resemble ‘spiffs’ [add-on sales],” he said. “And technicians don’t want to be salespeople; they are not comfortable in that position.
“The system will pay people based on job performance, not on their ability to sell.”
Hajduk added that PPS is compatible with the company’s original flat-rate pricing guide (Customer Assurance Pricing™ [CAP]). Technician pay is determined by comparing the actual time for a repair to the expected time, as established by the CAP database. The technician is paid accordingly.
“This system is attractive to employees because it rewards them for speed, accuracy, and quality of work,” Hajduk said. “Acting like a bonus plan, PPS will let owners compensate based on high levels of efficiency and production.”
The system, developed by Hajduk’s partner Jeff Kelley, pays people to be “better at their trade,” said Hajduk.
He added that “It could be deemed to be a little more pressure if technicians are not committed to their craft. But it will make them more money.”
Hajduk addressed the question of performance pay vs. regular raises. “PPS has a built-in element that allows for merit increases,” he said.
What are the benefits to contractors?
“The benefits that the system generates for both employer and employee are invaluable to any hvacr and plumbing business,” he said. “By using this system, companies will find it easier to attract and retain quality employees that uphold a commitment to quality workmanship.”
Delivery of the PPS system is slated to begin Oct. 1, 2001, according to Hajduk.
“There will be additional modules available later,” he said, “such as tracking gas usage, building up credits for technician tool purchases, tracking inventory, etc.”
Mr. Levi’s father, Morris, started the company in 1936 as Morris Oil. Mr. Irving Levi and his sons, Marty, Richie, and Alan, expanded the business through acquisition and renamed it OSI. In 1997, they added plumbing, gas heating, and cooling to the business.
Mr. Levi served on the Advisory Committee of the New York Oil Heat Association for many years. Notes of consolation to the family may be sent to osi5@ earthlink.net (e-mail).
Publication date: 09/10/2001