Lower Labor Costs & Increase Employee Productivity

!

Project Based Compensation

Common-Goals

Companies & employees have the same goals: safety, quality and speed

Inspiration

Employees work smarter because compensation is directly tied to their effort

Management

Supervisor have more time to focus on quality and safety

Control

Labor costs are better controlled, allowing more accurate estimates and consistent margins

Creativity

Employees are encouraged to solve problems and improve processes

And Many More Benefits

Inspire Your Team

The current hourly pay system is broken, and productivity across the board is suffering because of it. Employees are not directly compensated for the work they produce, resulting in decreased motivation, lower wages, higher turnover and lower profits.

Our solution is simple: if you incentivize employees correctly, they will be more productive.

Protiv is a revolutionary bonus program that directly ties productivity to employee pay, creating, tracking, and managing project based incentives. Companies that use Protiv simultaneously lower labor costs, increase employee wages, and reach higher profit margins, all without sacrificing quality or time.

With Protiv, everyone wins.

1 Knowing Your Labor Cost This is the first step to establish ProPay
Based on how they operate, industries allocate labor cost differently. Knowing your unique labor cost is the first step toward reducing it.

Labor Cost Examples:

Labor Cost by Project

$ 10,000

$ 10,000 Current Project Revenue Example

Profit

15% / $1,500
Other Costs

35% / $3,500
Direct Labor

50% / $5,000

Labor Cost by Unit

*Unit Cost Equation

Labor Cost

Produced Units

= Unit Cost

Unit Cost

$10/ unit
Produced

20 units
Labor Cost

$200/day

Labor Cost by Task

Hours Labor Costs

Clean Room

2h

$50

Install Sink

1h

$25

Install Vanity

2h

$50

2 Identify Ideal Cost
Once you’ve calculated your current labor cost, we’ll help you set a target cost, based on your desired savings. This target cost will help our Protiv Productivity Specialists identify your ProPay, which is the flat amount paid to your employees for completing the job.

ProPay Examples:

ProPay by Project

$ 10,000

$ 10,000 Current Project Revenue Example

Original Labor Cost

50% / $5,000
ProPay

45% / $4,500
Savings

5% / $500

ProPay by Unit

Produced Units x Savings Rate = Total Savings

20 units x 1$ = $20

$100

$5200

Daily

Weekly

Yearly

Original Unit Cost

$10/ unit
ProPay
Rate

$9/ unit
Savings
Rate

$1/unit

ProPay by Task

Original Cost ProPay Savings

Clean Room

$50

$40

$10

Install Sink

$25

$20

$5

Install Vanity

$50

$40

$10

Total

$50

$40

$10

*task labor cost is hours multiplied by hourly rate

3 Establish Wage Growth
After we’ve set up ProPay, you’ll be ready to introduce it to your employees. With ProPay, employees will have the opportunity to earn more per hour, but your overall labor cost will go down.

Prepare ProPay Details

Choose between One or Multiple Employees

Work Begins!

Employee Results by Project

ProPay

45% / $4,500
$5000 — originally
Base Wage

$20
Hours Complete

200h
250h — originally
New Wage

$22.5
Wage Growth

12.50%

Employee Results by Unit

ProPay
ProPay Rate x Units

$9 x 50 = $450
$10 — originally
Base Wage

20$
Hours Complete

20h
22.5h — originally
New Wage

$22.5
Wage Growth

12.50%

Employee Results by Task

ProPay

$100
$125 — originally
Base Wage

$20
Hours Complete

4.45h
6.25h — originally
New Wage

$22.5
Wage Growth

12.50%

Level up Your Business

Labor Cost

-10%

Profit

3-5%

Capacity Growth

15%

Wage Growth

12.5%

Additional Benefits

Employee Retention

Quality Advancement

Estimate Improvement

Rapid Employee Evaluation

Case Study on ProtivPainting and Renovations

1

Challenge.

2

Solution.

3

Results.

Challenge.

Perennial Construction Solutions, a New York City renovation company, was facing multiple challenges as it grew larger:

Expanding overhead and the need to reduce costs, specifically to stay competitive with smaller contractors
A tight labor market was pushing wages higher, so they needed a compensation model that attracted and retained the best employees
Ownership wanted to have more fixed labor costs, so a project financial performance would be closer to to what was used in the estimates and proposals

Solution.

Perennial implemented ProPay by Protiv, to help control their labor costs, while maintaining competitive compensation. Protiv was implemented on projects across dozens of job sites in New York City. Trades included flooring, tile, painting, carpentry, cleaning and more. We worked with Perennial management to set initial flat rate pricing (ProPay), for tasks on their specific projects. We educated their employees on the differences between ProPay and their previous hourly compensation model. They were shown how they could earn more per hour with ProPay, by eliminating wasted time, doing quality work the first time and bringing their ingenuity/creativity to the job site each day.

Results.

For this case study, Perennial compared their 2021 projects on ProPay, to the same projects in 2019 and 2020 on hourly compensation.

Employees on ProPay earned an average of 17.4% more in hourly compensation, compared to their pervious base pay.
Perennial found that switching to ProPay, with no other major changes, lowered average project labor costs by 21.54%.
The team’s productivity created over 11,191 hours of additional capacity, on which Perennial earned an additional $629,000 in revenue.
With one particularly challenging client, Perennial was able to reduce the variance to 2021 labor costs by 50.45%, compared to prior years. This was critical in allowing them to achieve more consistent profitability from this client, who then renewed at favorable terms.

Made an average of

$10.81/hr

Raise

17.4%

Additional Capacity

11,191 hours

Perennial’s workers, on ProPay jobs, made an average of $10.81 more per hour, a 17% raise. This increase in compensation, a direct result of the Protiv model for sharing productivity gains with employees, allowed Perennial to attract and retain great staff.
A surprise value was the team’s capacity gain. Powered by employee’s productivity, Perennial created an additional 11,191 hours of capacity.

Your Potential

Please enter your data to see your Protiv potential. Results may vary based on industry, implementation, and other factors. We will work with you to get the best outcome.

Annual Revenue

Current Yearly Net Profit

10%

0% 100%

Direct Labor Cost

40%

0% 100%

Average Hourly Rate

Yearly Labor Employee Count

Click below to see calculations by:

Financial Gains

Wage Growths

Capacity Growth

Total Savings:

Percentage represents the Financial Gains / Annual Revenue

Hours & Revenue

5,000 h

Good

Better

Best

Detailed Perfomance Information

Good

Better

Best

Employee Wage Growth

+0%

Labor Savings

3%

5%

7.5%

Capacity Growth Hours

533

Capacity Growth Revenue

$ 50,000

Capacity Growth Profit

$ 5,000

Financial Gains

$ 23,200

Our Story

Protiv's mission is to inspire human potential.

Protiv was started with the belief that we could better inspire our team members to their highest potential. We believe employees who are treated fairly and incentivized correctly are more productive. We learned this firsthand with our own construction company, finding it hard to control labor costs as we grew. We wanted to reward our best employees for performing well, specifically against our safety, quality and schedule goals. We wanted to get the most productivity, while keeping quality and safety standards high. We started to question if there was a better way.

We needed a solution.

We tried different supervisors and bonus programs, but in the end, we identified that it would be better if our staff took more personal ownership of their work. We had subcontractors who worked faster and we liked the fixed cost, but we wanted more control than we get with subs. We had the idea to blend the fixed compensation of the subcontractor with our hourly internal team. We started with a few of our best people, giving them a fixed amount, based on tasks completed. The results were astonishing! Our staff quickly got ahead of schedule and earned more per hour. They started operating like a partner in the business, advocating for correct materials, requesting specific tools to speed up processes, hitting quality standards the first time and holding other team members accountable. We were eventually able to produce the same amount of work with 20% less staff. During this process, our team made more per hour, but our labor costs actually came down! We knew we had something special.

Empowering our employees to control their own earning potential excited us, and that feeling of excitement is what urged us to start Protiv. Most companies use a traditional compensation model, and the results leave much to be desired. At Protiv, we’ve found a way to maximize both performance, quality, safety and profitability for employees and employers together. Creating the correct incentive program can be a daunting task, but Protiv inspires your team to reach their full human potential.

Inspire Human Potential

Protiv links compensation to productivity, creating the most innovative bonus program ever

With Protiv, you will:

!

Project Based Compensation

Common-Goals

Inspiration

Management

Control

Creativity

Inspire Your Team

1

Knowing Your Labor Cost This is the first step to establish ProPay Based on how they operate, industries allocate labor cost differently. Knowing your unique labor cost is the first step toward reducing it.

Labor Cost Examples:

$ 10,000

Profit

15% / $1,500

Other Costs

35% / $3,500

Direct Labor

50% / $5,000

Labor Cost

Produced Units

= Unit Cost

Unit Cost

$10/ unit

Produced

20 units

Labor Cost

$200/day

2h

$50

1h

$25

2h

$50

2

Identify Ideal Cost Once you’ve calculated your current labor cost, we’ll help you set a target cost, based on your desired savings. This target cost will help our Protiv Productivity Specialists identify your ProPay, which is the flat amount paid to your employees for completing the job.

ProPay Examples:

$ 10,000

Original Labor Cost

50% / $5,000

ProPay

45% / $4,500

Savings

5% / $500

Original Unit Cost

$10/ unit

ProPay

$9/ unit

Savings

$1/unit

$50

$40

$10

$25

$20

$5

$50

$40

$10

$50

$40

$10

3

Establish Wage Growth After we’ve set up ProPay, you’ll be ready to introduce it to your employees. With ProPay, employees will have the opportunity to earn more per hour, but your overall labor cost will go down.

Prepare ProPay Details

Choose between One or Multiple Employees

Work Begins!

ProPay

45% / $4,500

Base Wage

$20

Hours Complete

200h

New Wage

$22.5

Wage Growth

12.50%

ProPay

Knowing Your Labor Cost This is the first step to establish ProPay
Based on how they operate, industries allocate labor cost differently. Knowing your unique labor cost is the first step toward reducing it.

Identify Ideal Cost
Once you’ve calculated your current labor cost, we’ll help you set a target cost, based on your desired savings. This target cost will help our Protiv Productivity Specialists identify your ProPay, which is the flat amount paid to your employees for completing the job.

Establish Wage Growth
After we’ve set up ProPay, you’ll be ready to introduce it to your employees. With ProPay, employees will have the opportunity to earn more per hour, but your overall labor cost will go down.