Table of Contents
- Overview
- Setting Your P4P Percentage
- How P4P Earnings Are Calculated
- How Final Pay Is Decided
- Callbacks
- The Payroll Page
- The My Earnings Page
- Managing Pay Periods
Overview
Pay for Performance (P4P) lets your employees earn a share of the labor revenue they bring in. At the end of each pay period, LawnPro compares each employee’s P4P earnings to their regular hourly pay and pays whichever is higher.
An employee’s hourly pay is always the floor. If P4P comes out lower, they’re paid their hourly rate and overtime as usual, so no one earns less under P4P than they would have otherwise.
Setting Your P4P Percentage
The P4P percentage is the share of each job’s invoice total that goes to the crew who did the work. It starts at 33%, and you can change it to fit your business, such as 25% or 40%.
How P4P Earnings Are Calculated
LawnPro calculates P4P when a job is marked complete and has an invoice linked to it.
- LawnPro multiplies the job’s invoice total by your P4P percentage. The result is that job’s P4P pool.
- The pool is split among the employees who worked the job, based on each person’s share of the total hours.
Example: A job is invoiced at $600 and your P4P percentage is 33%, so the P4P pool is $198. Two employees worked the job for a total of 6 hours. One of them worked 3 hours, half of the total, so they earn $99 of the pool.
P4P is calculated when the job is completed, not when the customer pays the invoice. Your employees don’t have to wait on customer payments to see their earnings.
Each job is counted only once, so an employee won’t be paid P4P twice for the same work.
How Final Pay Is Decided
For each pay period, LawnPro works out two amounts for every employee.
- Base + Overtime: regular hours times the employee’s hourly rate, plus overtime hours at 1.5 times that rate. Hourly rates can be set per employee and per time category, so an employee can have one rate for job time and another for drive time.
- P4P earnings, minus any callbacks: the employee’s total P4P for the period, less any callback deductions.
The employee is paid whichever of the two is higher.
Example: An employee’s Base + Overtime for the week is $800.
- If their P4P earnings are $950 with a $50 callback, their P4P total is $900. That’s higher than $800, so they’re paid $900.
- If their P4P earnings are $700, that’s lower than $800, so they’re paid their $800 Base + Overtime.
Callbacks
A callback is a deduction you can apply to an employee’s P4P earnings. Use one when an employee has to go back to a job because of poor work, damages something on a property, or causes a quality issue that needs a revisit. You can enter a reason and link the callback to the related job.
Callbacks only reduce P4P earnings. They never come out of an employee’s Base + Overtime pay.
Because of that, a callback only changes an employee’s paycheck if they’re being paid through P4P for that period. If the employee is being paid Base + Overtime, the callback is still recorded but their pay stays the same. LawnPro shows a warning when you add a callback in this situation.
The Payroll Page
The payroll page shows every employee’s pay for the current pay period in one table.
| Column | What it shows |
|---|---|
| Hours | Total hours, regular and overtime. |
| Base + Overtime | The employee’s hourly and overtime pay. |
| P4P | The employee’s P4P earnings. |
| Callbacks | Any callback deductions, shown as a negative amount. |
| Final Pay | What the employee will be paid: the higher of the two methods. |
| Method | A P4P or Base badge showing which method decided the employee’s pay. |
Above the table, cards show totals for the period, with arrows comparing them to the last period.
You’ll also see:
- Top performers: your five highest earners for the period.
- P4P vs Base: a bar showing what share of your team was paid through P4P and what share through Base this period.
The My Earnings Page
Each employee can see their own pay on the My Earnings page. Employees only see their own information.
The cards at the top show the employee’s hours worked, Base + Overtime, P4P earned, and You’ll Earn, which is the amount they’ll be paid. A trophy badge appears on You’ll Earn when P4P is the higher amount.
Below the cards, bars compare the employee’s P4P and Base + Overtime amounts side by side. A daily breakdown lists each day of the period. Click a day to see the jobs worked that day and how much P4P each one earned, with the highest-earning jobs first.
Managing Pay Periods
Each pay period moves from open to closed to paid.
- Close the period when the pay cycle ends. This runs the final P4P calculations and locks the period’s records.
- Reopen a closed period if you need to make corrections.
- Mark as Paid once you’ve run payroll through your payroll provider.
You can also:
- Add notes to any pay period for your own records.
- Export the period to a CSV file for your payroll provider or accountant.
- Email earnings to all employees at once, or to one employee.
- Print a payroll summary report.