Employee Pay

Discussion in 'Employment' started by VeteransLawnScapes, Jul 24, 2018.

  1. VeteransLawnScapes

    VeteransLawnScapes LawnSite Member
    Messages: 14

    Ok. So this is my first actual legit year in business. I started the year before but kind of did it all under the table to see how things would go. But now I’m totally legit and legal with everything. I know every state is different but I am getting to the point if I keep growing like I am that I’m going to have to start hiring fast. What is a good basis for paying employees? Salary, per hour, per yard?? Seems like per hour they move slow as **** and can’t get everything done that should be and it’s not like I’m overloading my guys by any means. Any help would be greatly appreciated!!!
    Tara Ann likes this.
  2. TPendagast

    TPendagast LawnSite Fanatic
    Messages: 16,017

    They key to employees is to understand employees
    This a job
    A means to an end
    It is not their passion, they are not prepared to sacrifice everything for it to succeed
    They do not have the training to be confident in everything that they do.
    If they did.. you could not afford them.

    Because of this you need to learn to sell/estimate to their speed/efficiency, not yours.
    Rarely if ever will your employees do it better or faster than you, if you get to that point you have a large company and you’re probably old.

    At your size(start up) pay by the yard will not work, as you don’t have trained veteran employees and a tight/efficient route.
    Salary is not typically legal unless you plan to pay them for 40 and work them less than 40.

    That leaves hourly with OT pay if worked.
    Tara Ann, Mdirrigation and knox gsl like this.
  3. OP

    VeteransLawnScapes LawnSite Member
    Messages: 14

    I know most guys just see this as a job and I totally understand that. And I’ve started to learn in this industry that most people we hire can’t actually get jobs that actually pay really good and I’m ok with that. I try to pay the best I can which I’ve been paying by the hour. 12-14 hour just for a helper which I have talked to quite a few people around my area (North Alabama) and I seem to be paying higher then most guys do. The guy I have now does a really good job and it’s very rare that I have to go back over what he does. We’re growing like crazy. I have 80+ accounts and seem to be not slowing down at all. Their is a lot we do different from a lot of other companies. And if a lot of other guys pay by the hour I just wanted to see how much they pay for a standard helper and for a crew leader.
    Tara Ann likes this.
  4. TPendagast

    TPendagast LawnSite Fanatic
    Messages: 16,017

    Be careful of rapid growth, that typically means your prices are too low
    Raise your prices a little to slow down growth until you can catch up to the growth.
    Then you can bring them back down again if your numbers show that’s possible.
  5. Tara Ann

    Tara Ann LawnSite Senior Member
    from Midwest
    Messages: 631

    Hire slowly; fire quickly.
    MasterCuts likes this.

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