Percent of gross paid out as wages?

Discussion in 'Industry Surveys & Polls' started by Yard-Dawg, May 18, 2010.

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Guys with hired staff, what percentage of your gross is paid out to them as wages?

Poll closed Aug 16, 2010.
  1. Less than 10%

    0 vote(s)
    0.0%
  2. 10% >> 20%

    0 vote(s)
    0.0%
  3. 20% >> 30%

    33.3%
  4. 30% >> 40%

    66.7%
  5. 40% and greater

    0 vote(s)
    0.0%
  1. Yard-Dawg

    Yard-Dawg LawnSite Member
    Posts: 44

    For the guys that have hired staff, what percent of your gross income is paid to your staff as wages?

    I would like to get a quick picture of where the cost of wages come into this line of business.
     
    Last edited: May 18, 2010
  2. colbyjh

    colbyjh LawnSite Member
    Posts: 14

    I'm a new business and I pay about 25% to my employee. This makes sure that the expenses are covered and the business and I both make money. When I first started I was actually paying to work. I was paying about 45% to him. What I did is took the cost of all my equipment and divided it over 150 jobs per year. and said I wanted everything to be paid for in 2 years. So the business has to make atleast X dollar amount (adding that cost plus gas, vehicle maintenance, etc.) per job to reach that goal. Plus I want to make a profit as well. And as the owner of the business I should make more.
     
  3. lawn_jockey

    lawn_jockey LawnSite Member
    Posts: 226

    30% is what we our guys. They make great money.
     
  4. shovelracer

    shovelracer LawnSite Silver Member
    Posts: 2,009

    It is going to vary greatly from one to another. 30% is about as high as you might want to go for small maintenance. Across the board midsized guys tend to wind up in the 15-25% range. If you look at the top 100 companies many of them are operating at the 10-12% range. This is ideal. It should be that in an efficient operation a good employee grosses 100K in labor alone. Small guys struggle with inefficiency to they tend to get well under this.
     
  5. Turf Logic

    Turf Logic LawnSite Member
    Posts: 243

    Im calling bullshit on 10 to 12 percent for labor unless you are charging out the ass or labor associated with lawn care.
     
  6. snomaha

    snomaha LawnSite Senior Member
    from midwest
    Posts: 893

    33% including fair market wage for the owner.

    Would like to see wages as a percentage of revenue minus subcontractors and COGS - seems like that would be a better benchmark by creating a level playing field for comparing a hardscapes company with a maintenance company.
     
  7. ryde307

    ryde307 LawnSite Senior Member
    Posts: 540

    21% for employees, 41% employees plus 2 owners salary, and 9% to sub contractors.
     

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