Paying a salary to employees.

Discussion in 'Irrigation' started by eclipselawn, Mar 8, 2008.

?

Should worthy employees be payed a salary to keep them around.

  1. Yes

    87.5%
  2. No

    6.3%
  3. Other. I have posted a different opinion

    6.3%
Multiple votes are allowed.
  1. eclipselawn

    eclipselawn LawnSite Member
    Posts: 11

    I am finally to the point that I want to keep certain employees around year after year. I was considering putting them on a salary.

    Does this work out to benefit both of us?

    Is it very hard to manage?

    For those of you doing this, are you happy doing it?

    For those if you willing to answer, How much are you paying/or would advise to pay on salary to an irrigation department person that manages and operates mostly alone?
     
  2. Problem with salary method is employee motivation is different than employee who is paid on commission. I'm not sure how you would do this with install but I pay a percentage of the billing fee. Keeps them motivated, eager for the next job, and out of 7-eleven. Depending on their gross billing I give them a bonus in Dec which tides them over til we get real busy again. Their is usually enough winter work to keep them semi busy as well. Retaining good employees however you can do it is definitely important.
     
  3. CAPT Stream Rotar

    CAPT Stream Rotar LawnSite Fanatic
    Posts: 5,959

    I'm all for it..
     
  4. Kiril

    Kiril LawnSite Fanatic
    Posts: 18,308

    Ditto :clapping:
     
  5. DBL

    DBL LawnSite Silver Member
    Posts: 2,219

    i dont want to jump into your irrigation forum but i pay 2 formans salary and all other employees hourly
     
  6. DanaMac

    DanaMac LawnSite Fanatic
    Posts: 13,156

    I'm changing my main tech to salary this year, but paying it over 9 months. April - December. Things slow a little in Sept. before blow outs, and then also mid-Nov to end of Dec.. So this will allow him to budget better.
     
  7. Tom Tom

    Tom Tom LawnSite Bronze Member
    Posts: 1,278

    Salary should work well for both sides, but like Fimco said, motivation is the key.

    Perhaps the salary should be based on the average number of hours usually worked in a season.

    Then, a bonus could be factored in for every hour that the employee goes above the average number.

    So that provides motivation and encourages the longer work weeks required at busy times.
     
  8. eclipselawn

    eclipselawn LawnSite Member
    Posts: 11

    Thank you guys for your input.

    As far as motivation is concerned this particular employee has said that a salary position is what he wants most. I have already proven to be a good company to work for to him.

    I was also thinking to add some more motivation that I would offer a profit sharing type bonus if he makes that department go over a set gross dollar amount for the year.
     
  9. mikecaldwell1204

    mikecaldwell1204 LawnSite Member
    Posts: 185

    Correct me if I am wrong but if employees are on salary I do believe they have to have some managerial responsibilities such as hiring firing and such or you could get into big trouble with the labor department for not paying their ot.
     
  10. Mdirrigation

    Mdirrigation LawnSite Silver Member
    Posts: 2,762

    there are federal rules on saleried vs hourly employees . I wouldnt switch those to salary too quick . you may find out that you will owe them at the end of the year.

    My service guy gets a hourly wage , and a portion of the service ticket based on the time and the materials .
     

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