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P4P Integration

Pay for Performance (P4P) rewards team members for efficient, high-quality work. Time tracking data is essential for calculating P4P bonuses.

How P4P Uses Time Data

The Core Formula

Efficiency Index (EI) = Budget Minutes / Actual Minutes

Example:

  • Budget: 90 minutes
  • Actual: 75 minutes
  • EI = 90 / 75 = 1.2 (20% more efficient than expected)

What the Numbers Mean

EI ValueMeaning
> 1.2Excellent - significantly faster
1.0 - 1.2Good - at or above expectation
0.8 - 1.0Acceptable - slightly slower
< 0.8Review needed - well below budget

Data Flow

Visit Timer → Time Entry → Visit EI → Job EI → Weekly EI → P4P Bonus

Step by Step

  1. Timer records actual time per visit per person
  2. Visit EI calculated against visit budget
  3. Job EI aggregated across all visits
  4. Weekly EI calculated for team member
  5. Bonus tier determined based on EI
  6. Quality gates checked (callbacks, defects)
  7. Final bonus calculated

Key Metrics from Time Tracking

Actual Minutes

Total time recorded on visit timers:

  • Multiple time entries summed
  • All team members included
  • Breaks excluded

Budget Minutes

Expected time for the visit:

  • Set when scheduling
  • Based on service type
  • Adjusted for property size/complexity

Labour Cost

Calculated from time entries:

Labour Cost = Duration × Hourly Rate

Revenue Per Labour Hour (RPLH)

RPLH = Visit Revenue / Total Labour Hours

Higher RPLH = more profitable work.

Quality Gates

Efficiency alone doesn't determine bonuses. Quality matters too:

Callback Penalty

If client reports an issue within 7 days:

  • Visit flagged as callback
  • EI bonus reduced or eliminated
  • Even if original visit was fast

Defect Tracking

Quality issues tracked:

  • Photo evidence required
  • Manager review
  • Impacts bonus calculation

Example

MetricValueImpact
Weekly EI1.15Tier 2 bonus
Callbacks1-25% penalty
Final1.15Tier 2 × 0.75

Bonus Tiers

Typical tier structure (configurable):

TierEI RangeBonus
1< 1.0No bonus
21.0 - 1.1$50/week
31.1 - 1.2$100/week
4> 1.2$150/week

Company Specific

Your company sets bonus tiers and amounts. Check with your manager for your specific structure.

Time Tracking Requirements for P4P

Accuracy is Critical

P4P relies on accurate time data:

  • Start timers when arriving
  • Stop timers when complete
  • Don't leave timers running
  • Report issues promptly

Manual Entries

Manual time entries are flagged:

  • Count toward EI calculation
  • High manual entry rate may affect bonus eligibility
  • Always include explanation

Timer Compliance

Some companies require minimum timer usage:

  • e.g., 90% of visits must have timer entries
  • Manual entries used sparingly
  • Non-compliance may disqualify from bonus

Viewing P4P Data

Your Dashboard

Team members see:

  • Current week's EI (updating)
  • Last week's final EI
  • Month-to-date average
  • Bonus earned

Manager Dashboard

Managers see:

  • Team EI breakdown
  • Individual performance
  • Trend analysis
  • Quality metrics

Best Practices for P4P

For Team Members

  1. Start timer on arrival - Not after unloading
  2. Stop timer when complete - Include pack-up
  3. Don't rush quality - Callbacks hurt more than time savings
  4. Check budgets - Flag unrealistic budgets to manager
  5. Review your EI - Understand your performance

For Managers

  1. Set realistic budgets - Use historical data
  2. Review outliers - Investigate very high/low EI
  3. Adjust for conditions - Weather, property changes
  4. Communicate clearly - Team understands the system
  5. Calibrate regularly - Update budgets based on data

Budget Calibration

Why Budgets Need Updating

Initial budgets are estimates. Over time, refine them:

  • Use actual time data
  • Account for efficiency improvements
  • Adjust for property changes

EWMA Smoothing

YardPilot uses Exponential Weighted Moving Average:

New Budget = (α × Latest Actual) + ((1 - α) × Old Budget)

Where α = 0.3 (default)

This prevents:

  • One fast visit making all future ones "inefficient"
  • One slow visit unfairly penalising forever

Fairness Considerations

New Team Members

  • Ramp-up period before full P4P
  • Training time excluded
  • Mentored visits tracked separately

Difficult Properties

  • Some properties take longer
  • Budget reflects actual requirements
  • Don't penalise for hard work

Equipment/Vehicle Issues

  • Delays outside control excluded
  • Document with notes
  • Manager adjusts as needed

Reports

P4P Summary Report

Weekly/monthly summary:

  • EI by team member
  • Bonus calculations
  • Quality gate results
  • Trend analysis

Historical view:

  • Individual improvement over time
  • Team averages
  • Seasonal patterns

Budget Accuracy

Are budgets realistic?

  • Actual vs budget trends
  • Properties needing adjustment
  • Service types to review

Next Steps

Field Service Management for Australian Businesses