There are some great points in this thread. I believe employees are the hardest part of running a business and it is much more complicated than how much to pay a person. It actually starts with your strategic plan and where you want to go with your business.
Here are a couple of items I would keep in mind when calculating pay:
Base pay
All the fringe benefits including health insurance, holiday, vacation, training, etc.
Taxes (social security, medicare, etc.) and insurance.
Non-billable time (working in the shop, seat time, company meetings, running for supplies, etc.)
Take all those expenses and allocate them over billable time. Billable time is basically how many hours a year, month, week, etc. are they actually producing revenue-generating work. The typical year is 2080 hours of total time (52 weeks times 40 hours per week.) I think you will find you are getting about 1,600 billable hours a year out of your employees.
Numbers are the easy part, now consider:
How much can you bill for this person?
Are they leaders and do they make those around them better?
Do they represent your company accurately?
Do they relieve or create stress for you and your personal life? And it will affect your personal life.
Are they efficient? Can they do a 2-day job in 2 days or does it take 2.5 or 3?
Are they a future competitor or your future?
Do they damage equipment or maintain it?
Etc.
I am sure we have all experienced a very expensive $15 an hour person and a cheap $25 dollar an hour person.
Stuart,He is just a night maintenance guy. Sanding, honing polishing is all he does. So I am guessing he is about right at $20.00 hr. Yes he does get some overtime.
He did say he wanted $20.00 hr. with a $5.00 hr. for premium hrs. meaning night shift.
From: sccpartners@stoneandtilepros.simplelists.com <sccpartners@stoneandtilepros.simplelists.com> on behalf of Stuart Rosen <mail@stoneshine.com>
Sent: Saturday, November 23, 2019 8:20 PM
To: sccpartners@stoneandtilepros.simplelists.com <sccpartners@stoneandtilepros.simplelists.com>
Subject: Re: Employee wagesIs he a mechanic or a polisher?If you pay your helpers 15 and day mechanics 22 then 25 for a night mechanic seems relative.If he is just a maintenance guy then I think $20 may fit.If there is some overtime in the mix he should be ok
Sent from my iPhoneRandy,We pay day rates based on a 10 work day. Pay ranges between $170 and $230 per day! That is a significant pay increase that he is asking for! How is his job performance? I would consider implementing a (JQR) job quality report with a quarterly bonus structure attached. You could base it on many factors like job quality and performance, no tardiness, increased job knowledge and job skills, no customer call backs, 5 star customer reviews, no on job accidents and no vehicle accidents, safety ,up selling on the job etc! That could make up incentives in pay while helping to boost company profitability, employee morale, teamwork and leadership. You could have a rating scale for below, meeting and exceeding expectations. Just my thoughts!
Kevin L. HudsonN-Motion Stone and Tile Restoration(678) 662-0110
I only have part time employees for whenever needed but they get 33.33 hr and a minimum 130.00 per job. If a job only takes the 3 hrs they will make the 130.00. And these are on call employees that work a regular day or night job for someone else and for me during their available hrs.
On Nov 23, 2019, at 12:06 PM, Pat Staples <cpstaples@msn.com> wrote:
Hello Partners,Just wondering what you are paying day and night time mechanics. I am paying my day time mechanics $22.00 hr. and day helpers $15.00My night mechanic is about to go to $20.00 but is demanding $25.00 hr. He knows about marble/terrazzo but nothing about refinishing granite. He has been doing the work for about 2 years.Everybody's feedback will be appreciated
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