hourly vs salary

Discussion in 'Landscape Lighting' started by niteliters, Jan 7, 2007.

  1. niteliters

    niteliters LawnSite Senior Member
    Messages: 537

    Who does what? Have you tried both or are presently paying employees both ways. We have our method but will not discuss yet so as to get some unbiased opinions at the start

    Does anyone have pros/cons as payer-owner??

    Does anyone have pros/cons as employee??
  2. Pro-Scapes

    Pro-Scapes LawnSite Platinum Member
    Messages: 4,180

    Good morning Chris.

    We currently pay both ways as well as by the job. On lighting installs (I only use labor for burial and I inspect thier work) I usually pay by the hour. If they finish faster than expected I pay them for the full time I thought it would take. I have always been a firm beliver in rewarding hard work.

    On alot of landscaping jobs and sod jobs I pay by the job or by the pallet usually unless its a difficult install and im charging the client more for it. I do tend to find this can cause some rushed work and quality issues tho so will probably shy away from it in the future (huge con, Pro here is you can come up with a set amount before the job)

    For mowing and maint I usually pay by the hour but again as always I offer a bonus if we finish early as long as nothing was rushed or missed (con here is if they are slow or some delays like failed equipment its eating into you. Pro here is if they are fast and hard working you maximize on them)

    If our new marketing campaigne works well I will be hiring on a full time guy to help and paying him salary plus bonuses for upsells and performance bonuses including paid time off. Keeping your employyes (good employees) happy and goal orientated is a key to any business. I want them to be happy about coming to work each day and let that be a reflection on my clients. Im not looking to get the most clients but I like to maximize the ones we do have.

    I usually look to have my payroll around 24% of my gross. This year it looks like it came out to be 26%

    Salaried employees can tend to slack off a little as they know they are still getting paid (con) but I find paying slightly less but offering nice rewards such as extra time off or bonuses keeps people motivated. It does however allow you to plan ahead and eliminate time and a half pay.

    We have also used day labor in the past with mixed results. They tend not to care about your company or image. You gotta keep an eye on them and your tools. We do have a couple of part time day labors who work on thier day off ect with good results. However You gotta make sure they are dressed approperatly for the high end clients your working for and they are usually more suited for hard labor like sod or tree installs.
  3. niteliters

    niteliters LawnSite Senior Member
    Messages: 537

    thanks for the thought out input, we presently have all of us on salary...3 of us. 2 of us have insurance, the other is not salary now but will be in 2months based on performance. Billy, what do you tie your bonuses to. We gave out bonus this past but while we wanted to tie it to business gross/net, would be confusing to bonusee if they didn't why they got that much and what they need to do to get it next year. I bug my Dad enough about the #'s. I don't think he or I would feel comfortable sharing that info...but if you don't how can you motivate your employee? your advice sir?

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