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paying employee by the percentage

Discussion in 'Landscape Maintenance' started by Decoste76, May 3, 2010.

  1. Decoste76

    Decoste76 LawnSite Member
    from MASS
    Messages: 155

    Does anyone pay your employee(s) by the percentage of what you make in a day or week. Like for an example... i make 530 in one day and i pay them 20% theyll make $106 dollars and that turns out to be a 9.5 hr day in my books.. just wondering if anyone else does this and what they think about it and if they do do it what percentage do they use? im tring to decide to go with 20 or 25%
     
  2. nepatsfan

    nepatsfan LawnSite Gold Member
    Messages: 3,142

    get good employees and pay them by the hour. I give out bonuses when the guys kick ass.
     
  3. thackerlawncare

    thackerlawncare LawnSite Member
    from Indiana
    Messages: 21

    I agree. Paying by the hour is much more simple and the guys know what to expect. Some jobs you may have smaller profit margins and they may be the ones to get screwed. The only guys I pay on percentage are my sales guys.
     
  4. kemco

    kemco LawnSite Bronze Member
    Messages: 1,058

    You could possibly run into a little problem with the IRS if these are on the book employees and you pay just a percentage - there is a required minimum wage. There was a great thread a while back about how to pay a crew leader a percentage, then the crew leader "paid" for workers out of the gross percent coming to him... and incentive for crew leader to keep the crew moving. You could probably tweak this idea some and it would work for you. I will try to find a link to that thread and post it.
     
  5. kemco

    kemco LawnSite Bronze Member
    Messages: 1,058

    Would like to know what you pay your sales guys - sales for getting lawn accounts I take it? I dont want to be off topic though, send me a pm if you care to share.
     
  6. lawnlandscape

    lawnlandscape LawnSite Senior Member
    from Midwest
    Messages: 780

    People would not want to work for that. How are they suppose to budget for there own lifes?
     
  7. grassman177

    grassman177 LawnSite Fanatic
    Messages: 9,795

    i believe that would be US!:waving:
     
  8. grassman177

    grassman177 LawnSite Fanatic
    Messages: 9,795

    i thave thought of trying a certain percentage off of mine to make things more fixed and predictable as sometimes the behind days profit is ate up by the labor, but the good days are really good. i have yet to come up with a figure that would be attractive to any of our guys being they are paid by the hour andhave been always. it is still in my mind though
     

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