Anyone pay an employee a % of each job?

Discussion in 'Business Operations' started by ENDURO, Apr 24, 2006.

  1. ENDURO

    ENDURO LawnSite Member
    Posts: 64

    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
     
  2. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    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.
     
  3. lawnwizards

    lawnwizards LawnSite Silver Member
    Posts: 2,434

    he got .30 cents on the 1 dollar yards back then?:laugh:
     
  4. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501


    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:
     
  5. lawnwizards

    lawnwizards LawnSite Silver Member
    Posts: 2,434

    on a serious note, your referral letter has got me 2 new customers. thanks again for the usage:waving:
     
  6. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

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

    Turf Dancer LawnSite Senior Member
    Posts: 681


    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!
     
  8. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    LMAO...good one TD :clapping:
     
  9. Turf Dancer

    Turf Dancer LawnSite Senior Member
    Posts: 681

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

    bobbygedd LawnSite Fanatic
    from NJ
    Posts: 10,178

    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 %
     

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