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View Full Version : Anyone pay an employee a % of each job?


ENDURO
04-24-2006, 05:44 PM
I'm thinking of hiring my 1st part-time employee and wonder if it would be better to share a percentage of each job w/ him vs. an hourly rate. I like the idea because I think it would encourage them to do a better job and make them feel like they are a part owner of sorts. It could also raise their per hour salary significantly depending on what percentage I paid. I also think it might work better since I'm part-time and still a very small operation. My issue is that I am turning down a lot of business that I just don't have time to do myself. If I had a person willing to work, I could bid on every job and start advertising more to help my business grow. Also, would it make sense to setup this person as an independent contractor or should I pay him like a regular employee. I don't want to take the easy way out, just do what makes good business sense. I know these are complicated subjects, but any input that can point me in the right direction or help me avoid major issues would be helpful.
Thanks

rodfather
04-24-2006, 06:16 PM
I did it with my very first employee years and years ago. It worked quite well for the first year or two. I'm not positive, but I think I paid them 30% of what the job paid.

lawnwizards
04-24-2006, 06:24 PM
I did it with my very first employee years and years ago. It worked quite well for the first year or two. I'm not positive, but I think I paid them 30% of what the job paid.he got .30 cents on the 1 dollar yards back then?:laugh:

rodfather
04-24-2006, 06:41 PM
he got .30 cents on the 1 dollar yards back then?:laugh:


5,000 comedians out of work and look who's trying to become one :hammerhead: I'll admit...ya got me there my friend :laugh:

lawnwizards
04-24-2006, 06:52 PM
5,000 comedians out of work and look who's trying to become one :hammerhead: I'll admit...ya got me there my friend :laugh:
on a serious note, your referral letter has got me 2 new customers. thanks again for the usage:waving:

rodfather
04-24-2006, 07:01 PM
on a serious note, your referral letter has got me 2 new customers. thanks again for the usage:waving:

Great news...btw, I most certainly accept cash donations around the Holidays for my generosity :laugh:

Turf Dancer
04-24-2006, 07:17 PM
Great news...btw, I most certainly accept cash donations around the Holidays for my generosity :laugh:


Interesting I think you picked up on the same idea as the IRS they were accepting donations on their favorite holiday it was about 9 days ago!

rodfather
04-24-2006, 07:23 PM
Interesting I think you picked up on the same idea as the IRS they were accepting donations on their favorite holiday it was about 9 days ago!

LMAO...good one TD :clapping:

Turf Dancer
04-24-2006, 07:26 PM
LMAO...good one TD :clapping:

I was LMAO until the accountant said write the check! Uncle Sam wants more!

bobbygedd
04-24-2006, 08:47 PM
no way on the %. example: we did planting and mulch today, 2 of us for 3 hrs, then 1 man alone for the next 3 hrs. the take on the day was around $1300. plants + mulch cost perhaps $310. i paid him hourly, and he cost me $72 + payroll + wc expenses for a total of maybe $95. no way i'd pay a %

ElephantNest
04-24-2006, 09:21 PM
My employee has my cards with his name and cell number on them. Any jobs he gets for the company, he gets his regular hourly wage, plus 10% of the gross profit. If he didn't have anything to do with getting the job, he gets his hourly wage.

sheshovel
04-24-2006, 10:05 PM
Yea why pay a percentage when he's useing your equipment to do the work and working on jobs you provide..he or she is your employee..not your partner

Andyinchville
04-24-2006, 11:42 PM
I play the lesser of 30% of the trucks gross or the hourly pay rate....That way the if the crew slacks they only get the % of the jobs done....If they work hard....I reserve the right to give them a bonus (of course there can be and will be deductions if I ever hear a customer complaint for any reason).

richallseasons
04-25-2006, 12:43 AM
on regular work that I get for my business no , I pay my guys by the hour.But if they are out on a property and happen to get into a conversation that leads me to a paying job I give them 10 % after taxes and expenses have been paid,it makes them feel connected to my company and it forces them to be more professional when at the job site,so far it works well.

EPIC
04-26-2006, 11:28 AM
i think in will try that with my employees now see how it works for me

ed2hess
04-26-2006, 07:02 PM
We just started paying by the job on Saturday to gather some data in the case we have to move our business in that direction. The workers use their truck and our spare equipment. We started this for three reasons: 1. To see if we could lower our labor cost 2. Do some types of work not suited to regular mow/blow drill like mulch, dirt, bushes, etc. 3. To handle jobs that are not close to normal route. And since JustMowIt is the biggest residential company in the US(i guess) it seemed like a good bet to try to copy their model. Interesting the most complicated thing is to figure what to allocate for equipment cost per job considering we are using all used equipment that has been paid for. So far we are pleased to see the worker productivity is very very good(we track the hours for each job also). Each job has a different amount that we pay...not fixed percent. The accountant is working on how to blend the weekly payments with the weekend. Sorry I can't be specific yet but hope to know more by the end of season.

DadsLawnCareInc
05-10-2006, 08:14 AM
I have 2 sons and I (MY Company) pay them per property. Letís say 1 Son works 1 property which took him 1 hour to do, and the Co charged $30 to the customer, the son will get $10 out of that charge. In Colorado thatís a fair wage. $10 per hour.
Ok, now everyone can tear apart my post and tell me what I'm doing wrong. Go ahead... I won't cry... Honest. ďI know you are all Math wizardsĒ Good Luck, T.M.