Paying Empoyee Salary vs Hr wage

Discussion in 'Business Operations' started by Tim Wright, Apr 12, 2007.

  1. Tim Wright

    Tim Wright LawnSite Bronze Member
    Posts: 1,034

    I am in the midst of hiring and setting up my employee structure, and battling in my mind how I am going to pay this guy.

    Do you pay your crew leader's by salary or straight hourly wages?

    If you pay salary, what is your average hours that you work your guy(s)?

    If you pay straight hourly wage, do you keep them at 40 hours per week or go overtime?

    I am also looking at higher wages vs lower wages plus health insurance.

    I need good, strong, experienced thoughts advice, to think about.

    Tim
     
  2. Duekster

    Duekster LawnSite Fanatic
    from DFW, TX
    Posts: 7,961

    Too little info here to help you here. It really depends on the duties and the people managed.

    Manager pay is not really an issue unless you pay him to manage 7 to 10 people IMHO or even more.

    Crew leader? I would say an hourly wage plus a measurable performance commission.
     
  3. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    Tim, my crew leaders make $22.50 an hour. I keep them to 40 hours a week and offer 1/2 major medical reimbursement on their own or join my plan.
     
  4. Tim Wright

    Tim Wright LawnSite Bronze Member
    Posts: 1,034

    Thank you,

    May I ask who you have your plan through?

    Tim
     
  5. Duekster

    Duekster LawnSite Fanatic
    from DFW, TX
    Posts: 7,961

    On the other hand I just hired a guy with 15 years of experiance. He was running a commerical crew of about 15 to 20 workers. He made $125 per day.
     
  6. Flow Control

    Flow Control LawnSite Bronze Member
    Posts: 1,267

    Offer your crew leader a salary of 800-1000 a week. That will give him an incentive to get the work done faster and will hopefully keep your hourly workers away from OT.
     
  7. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    Horizon BC/BS Tim...send ya a pm too for you to read.
     
  8. Matt k

    Matt k LawnSite Member
    Posts: 60


    How is paying an employee salary an incentive?

    I pay all our foreman hourly, and all management and administrative salary. All employees have incentive programs attached as well, along with full med. and benis.
     
  9. bullethead

    bullethead LawnSite Senior Member
    from Texas
    Posts: 273

    The incentive is that when one is salaried, he/she does not receive overtime. So if they are not getting paid for overtime, then they will want to hurry up and get the hell done.
     
  10. Matt k

    Matt k LawnSite Member
    Posts: 60

    Or, they won't care at all how long the job takes!

    I tried the salary on production and it does not work. It is not fair to the employee and it will not be fair to the company. I was a salaried foreman for years and I will tell you from personal experience that it is not an incentive get the job done. At that point in my life, I could care less how long the job took, just so it looked good and the customer was happy. There is much more of an incentive to pay field members hourly and then tie performance incentives on top. Salary is a double edged sword when it comes to production, either the employee or the company will feel cheated at some point. JMO
     

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