Employee Commision or wage ?

Discussion in 'Business Operations' started by Maxwells, Apr 18, 2005.

  1. br549oicu8

    br549oicu8 LawnSite Bronze Member
    Messages: 1,230

    My crew leaders are commission based.
    They work hard and they work smart.
    Call backs are on their own time.
    Trips to clean their equipment are on their own time.
    Everything is inclusive of the commission. It is a generous one so they never complain plus I pay their health/dental insurance in full all year.
  2. A+ Lawncare

    A+ Lawncare LawnSite Senior Member
    Messages: 503

    what commision % do you offer for your employees?
  3. br549oicu8

    br549oicu8 LawnSite Bronze Member
    Messages: 1,230

    Crew leaders calculate at 38%.
    THIS INCLUDES their helpers wages.....ie...

    $100 job
    $38 commission
    took 1 1/2 hours with one helper @ $9 per hour....$13.50
    $38 - $13.50 = $24.50 for that job
    Just an example
    Now the leaders are responsible for ALL maintenance of equipment...
    blades, trips to the dealer, washing truck and equipment, bidding,,etc....all covered under the commission earned.
    Our season is about 9 months and the average about $38k per year.
  4. MMLawn

    MMLawn LawnSite Gold Member
    Messages: 3,569

    SO, at the tender young age of 17 you have decided to "go into business" and then start that "business" off on the Wrong and Illegal foot? You then are the very type of grass cutter that the real LCO's on here are complaining about daily............surely your mother and father taught you better! I only a week on LS you have almost 70 post with endless questions about this "business" so If you are going to "act like you are in business" then do it RIGHT and do it LEGAL!!
  5. grassrootsinab

    grassrootsinab LawnSite Member
    from up here
    Messages: 215

    I agree that paying a base wage rate and a smaller commision is probably a good way to go!

    When I first started (13 years ago) working in this field, I worked for a guy and was paid $8 /yard. He was charging about $20 for a "normal" residential lot. I could do about 2 an hour with 21" Self-prop Honda mower so I wasn't complaining about an overall wage of about $12/hr. I'm not sure what the employment standards are up here (I think you can pay piece-work so long as it meets minimum wage... and beside I pay an hourly wage to my employee) but I like the idea of a bonus (for me a minimum wage $6.00/hr + $2/prop). Maybe something to look at!!
  6. A+ Lawncare

    A+ Lawncare LawnSite Senior Member
    Messages: 503

    you are right about doing every aspect in a legit legal manner, i've only used my helper twice a total of 14hrs over the last month.if i was to continue to use him i'de setup the pay rate in a more legal manner. but i don't plan but to use him for much longer, due to financial isues to pay off equipment & truck.

    FYI the business i run is in my older brother's name (only a cosigner and is used b/c he is of age) so every aspect is legal, i did not start anything off on the wrong path. :rolleyes:
  7. precisioncut

    precisioncut LawnSite Senior Member
    Messages: 653

    If I want to pay someone cash for some work, I will. If I need a full-time or part-time person they will be on payroll. One time deals through out the year, I will pay cash.
  8. iluvscag

    iluvscag LawnSite Senior Member
    Messages: 743

    :) Commision just doesn't seem right in our company.When you tell the helpers you are going to give them commision for the more lawns they cut. I think they would drive to fast and not do a good job. HASTe makes waste.
  9. br549oicu8

    br549oicu8 LawnSite Bronze Member
    Messages: 1,230

    Commission also means going back if they miss something with no extra pay! If they do it a few times they will be more likely to take care of business while they are there. It is another way to make them accountable.
    Just my 2 cents.
  10. BigChaz

    BigChaz LawnSite Member
    Messages: 69


    Look at waiters. Avg pay is around 3/hr.

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