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Employee - What are they worth?

Discussion in 'Business Operations' started by slikrick, Jul 26, 2008.

  1. slikrick

    slikrick LawnSite Member
    from FL
    Messages: 101

    I'm working with two other guys and paying one $8 per hour and the other $10. obviously one is worth more and the one at 8 is lucky he still has his job.

    just wanted to know what you guys were paying yours and what are crew leaders getting?

  2. quadracer_13

    quadracer_13 LawnSite Member
    Messages: 50

    Just wondering but when you hired your employees did you go with people who had experience in your line of work?:confused:

    HOOLIE LawnSite Gold Member
    Messages: 3,981

    The first guy I ever hired, I paid him $10 an hour. Now as far as what he was worth....maybe 75 cents an hour :laugh: On the days he showed up anyway.

    For a new guy with no experience, I think $8 is fair to start, maybe with the understanding that you will bump them up as they gain experience and efficiency. For a crew leader, anywhere from $12-$15, possibly more depending on how much responsiblility they would have to assume.

    People say this is hard work and while it is, it's pretty mindless work for a laborer. Once they learn to deal with the heat it's like any other job.
  4. landscaper22

    landscaper22 LawnSite Senior Member
    Messages: 829

    Yeah, that's the magic question....What are they worth? Most of the ones I have worked are worth about $2 an hour max. Because really its like a baby sitting service. You know, these people go through the public school system, and it is really like a day care service. Then they either graduate or drop out, and they are so used to the hand holding that they expect the same on the job.
    The problem with the salary situation is you have to look at "what are they worth" vs. "How much do you have to pay them for it to be worth it for both you and the employee?" Unfortunately it is hard to find a salary that would be satisfactory to both the employer and employee. It probably cost them an hour's salary to drive to and from the job each day. So, really this $8-9 a hour stuff is not much at all with the cost of living so high. But, as the employer I realize that, at best they are only slightly reducing my work load. I also know that I have to check behind everything they do, and sometimes correct their mistakes. So, that gives me a new set of problems. Then factor in the employer's portion of SS and medicare, unemployment ins, worker's comp (if you have it), extra liability insurance, and employee's careless actions that cost you more in equipment repairs, etc...Soon, you realize this employee is costing you way more than the crappy $8-9 an hour you are paying.
  5. Gene $immons

    Gene $immons LawnSite Bronze Member
    Messages: 1,028

    Oh, I'd say most employees are worth about $5.00 an hour. If you look hard enough, you can find people to work for around $7 to $8 an hour.

    Crew leaders, $8 to $9.

    Oh, and yes, this is what I pay, I have done it for 10 years.
  6. quadracer_13

    quadracer_13 LawnSite Member
    Messages: 50

    Not sure how legal this is but do any of you guys that have employees just pay them cash so you dont have to go through all that crap?
  7. Gene $immons

    Gene $immons LawnSite Bronze Member
    Messages: 1,028

    remember that payroll is tax deductable. if you pay in cash, you will have a larger federal tax bill as it will appear that you made more money. Pay cash for bonuses, or for the employees who quit soon after you hire them. I would not suggest having full time guys getting paid in cash.
  8. davis45

    davis45 LawnSite Senior Member
    Messages: 985

    I wouldn't pay cash, I hate to risk getting in trouble for that. I pay my guys $10/hr. It's hard to find good help on that wage, since it is seasonal work and all.
  9. quadracer_13

    quadracer_13 LawnSite Member
    Messages: 50

    if you dont mind me asking, what do you guys pay your accountants?
  10. B & B Yardscape

    B & B Yardscape LawnSite Member
    Messages: 131

    I have three guys. $9, $10, $11. I just filled out my quarterly 941 and the 9 cost me $11.30 and makes me the most money. The $10 cost me $11.50 and is in charge of the mowing crew. The $11 cost me $12.92 and is soo worthless it pisses me off just to watch him mow. But he is my brother-in-law and that is a whole other post.

    This is just taxes. Doesn't enclude workmans comp etc.

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