Thank you Bruce for confirming this for me… I did my own research and came up with this number as well. Your numbers help illustrate the cost of an employee
Do you try to keep the costs of your employees below a certain % of gross?
My employee’s gross wage per day fluctuates from 16 - 30% depending how ‘lucky’ I got with the bid. On better paying jobs I pay less in wage, worse paying jobs pay more for wage. This is the same for any other business I would guess.
Ideally I could keep employee wage including costs of worker’s comp, tax etc at around 30% of gross but as we all know like is hardly ever “ideal”.
Are you saying you pay employees different rates based on if you get lucky pricing a job high or low?
Come on man, that’s just crazy…
What percentage of gross do you aim for paying employees?
** edit: I just re-read what I wrote and can see how it could be intrepreted that way: for the record my employee wages fluctuate as a ratio of how much we can earn in a day… see what I mean?
Our hourly pay is the same no matter what the price of a job maybe.
It’s based on going rate in our area. We like to be just above the average just to attract the right people and have no problem increasing pay for those that show effort.
The company makes the choices on how to price the jobs so it also takes the hit not the employees.
Employees deserve to have some guarantees.
What you are saying is basically common sense… nothing new here.
So nobody else misunderstands the same way you do: I pay my employees a set wage. How much that translates to as a percentage of gross depends on how well I price the job.
It’s okay, just having a conversation here.
Just clarifying because many startups don’t have any idea on the business end.
Especially when solo guys constantly go out and bid work for free or include their drive time as being free employees don’t do anything for free.
Free meaning it’s still a billable hour of your time in a business
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When having a conversation, it is considered the norm to answer a direct question in the course of exchange… isn’t it?
I had asked you what percentage of gross you target for paying employees?
Depends on experience of individual like I tried to explain above but was taken as common sense.
There is no one answer because all my employees get paid different wages ranging from $13 to 25
Another low visibility cost is the non billable hours required for employee issues. I have done 6 non billable tasks today related to employee issues for the employee that I laid off a month ago and for two other potential employees that I am interested in hiring as backups .
Hey man. Came back to this thread to ask you a question. Are there any easy storefronts near Sylva, waynesville, Asheville, etc. that you did previously but don’t do now? Maybe because they were too cheap or something? Just looking for an easy storefront to make a little money and get used to cleaning somewhere besides my own home.
I know a guy who has majority of them. I don’t do strorefronts I’m in asheville
Oh I gotcha
