How to get your employees to do good work? Cash prizes
April 24th, 2008 at 12:32 am, 18 months agoAlright, I do some work for the webhosting company Steadfast Networks. They offer shared hosting virtural and dedicated servers, along with colocation.
Each has its own level of ‘management.’
Shared hosting is controlled completely by Steadfast, so they are the ones messing around with Apache (a very popular web server program mostly run on linux) and making sure that it is working smoothly.
The VPSes have ‘full management’, so you get all the help you need making sure Apache is working properly.
There is a dedicated server ‘fully managed’ offering too, which costs you $80/month more than the cost of ‘basic management’ servers
Now here comes the fun:
‘Basic Management’ Dedicated Servers get 1 hour of system administration, then they pay $80/hr for help
And colocation customers, well, they pay $80/hr for basically everything
So, what happens with all those $80/hr fees for the ‘Basic Managed’ Dedicated and colocation customers?
One of the better HR ideas I have ever heard of.
Say we are talking about 150 billed man hours in a month, at $80/hr that is $12,000
Steadfast pockets $6000 and puts the other $6000 up on the board
Say 10 techs work there, that is $600 apiece. Split evenly. (these are made-up numbers)
Here is the fun: If you show up to work late (you have a 10 minute grace period) you are billed $1 per minute.. if you don’t come in for an hour (and don’t have a really good excuse) you just lost $50 from your $600, putting you at $550… oh no
Then this happens to another person, only he is a half hour late, so that is $20 off that person’s $600, so they are at $570…
And the pot is at $70.00
At the end of the month management talks amongst themselves and declares which employee was the ‘employee of the month’, and if that employee was never late (which is likely to happen if you are employee of the month) walks home with $670 in his pocket.
But with 10 techs, I can assure you that that person would be leaving with more than just $670
So, 2 benefits here: Be a great employee that stands out, and don’t show up late.
I love it!


