re-read my post. The answer is there.
well, sort of. except thereâs no mention of what a reasonable âownerâs commissionâ and âmanagement commissionâ percentage might be. are you working off of bruceâs simple numbers operating budget spreadsheet to get those figures?
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I have a salaried employee and when he is on a job I pay him the same as I would if I were on a job. The crew gets 30%(which I am going to revisit). Much like someone else mentioned, crew leader gets a higher percentage than a helper. When the salaried employee is on a job, he takes the same percentage as the crew leader. For example:
Job total $1,000
Helper 12% =$120
Crew leader 18% =$180
30% total
When the salaried employee is there:
Crew leader 11% =$110
Salaried emp 11% =$110
Helper 8%=$80
So still 30% total paid.
The salaried employee does not necessarily ever see that $110, it is just used toward his salary. Where it gets tricky Is when different crews are at a job for different amount of time. Then we go -job x 30% = total commission, then we take the commission and divide it by the total number of hours. That gives us a rate to apply to everyoneâs different amount of hours. We had around 300k in crew payroll this year, so tracking this can be a nightmare. Overall though, switching to commission was beneficial for us.
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Why was it beneficial?
It kept a steady payroll to sales ratio. We could go into the next year and know the exact crew payroll if we did x amount in sales. It also eliminated exorbitant overtime.
I have a simple solution for you⌠Stop doing labor.
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i suppose i had a shot to the nuts coming from you, larry.
When you love window cleaning, its not labor! exspecially when you have the helper doing all the ladder work!
As far as pay goes, I use an hourly rate for employees. They get a 5% commission for any up sell while on the job or if they cross sell another service. They get quarterly bonuses from getting top survey scores.
Been thinking of adding a bi-weekly bonus depending on labor %. say a guy gets paid $20/hr and last year he averaged $80/hr in sales clock in to clock out. Which means we currently pay him 25%. Helpers are paid $12/hr and average $50/hr = 24%. Lets say we have a 2 week period and a guy does $6000 which would equal 75 hours at his average pace. If he did it in 65 hours that is 21.7%, I would then pay the difference to equal 25%. I know its not quite a bonus but it does mean if they work faster and get more jobs done, they get paid to not work!
The key thing here is to really know what your business costs are and what your average labor percentage is. Knowing your profit margin will help as well, remember every extra dollar an employee gets is one less you get. So know what you want your labor % to be and if they are under, pay the difference.
I will add that there is a bonus stipulation. If they get one bad survey result they wonât get their bonus.
Here is what I tell all new hires âDoing excellent work will allow you to keep your job, going fast will get you a raise.â
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I vote this as the employer quote of the month.
Love it, going to use it
there are lots of threads regarding commision based pay percentages but you also need to apply that commision to a decent market rate. otherwise you will not be able to gainfully employ anyone gor very ling.
if your using subs, than they will probably want twice what you would pay an employee. since a sub will need ti use his own gear,gas and cover tgier own expenses.
As a former window cleaner in central Texas⌠the employer switched the pay from hourly to commission only, but lacked on the scheduling. We would do 1 house one day maybe 2 the next⌠never consistent. My checks are never the same. My check last week was $160⌠this week $265. This is complete crap and shouldnât be allowed. They also expect us to flyer when not cleaning, but not get paid for it. So as of yesterday I got fired because they added a job after 2:00 PM while we were still at a house and didnât get to that house until 4:00⌠after promising the customer weâd be there at 3:00. I made a decision for us to call the customer to reschedule for the next day. This house wouldâve taken 2 to 3 hours. And that conflicts with personal business and daycare. The owner was mad at me and fired me. I told him straight up. That the scheduling is crazy, the checks are horrible, and with 1 vehicle and living 1 hour away, I need to be at my sonâs daycare in time by 6:00 everyday. His words were âWho cares you have a job to doâ. But I was calm and said Iâm sorry, but i did appreciate the opportunity to gain the experience and i enjoyed the job. He said it didnât look like you enjoyed it and you have no ambition to work. But how can anyone put up with those paychecks, expect to flyer for free, put in about 40 hours and have ambition to work for a company like that.
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