[PAUL ERITH]

If i paid some one 60-70 per day to clean windows what would  the actual cost be. eg what would be the minimum amount they would need to clean each day before i turn a profit.


I know it will vary due to over heads but im just trying to get a rough idea of what a employee would cost daily if their wage was £60-70.

Thanks Paul

[julianbiggs]

Well £70 per day x 20 days is £1400. Then you need to add their NI which you have to contribute to as an employer, roughly £120 per month. That's now £1520. Then there's employers liability. £16 per month ( £200 a year). That's up to £1536 now. A van would cost roughly £150 diesel per month, £30 insurance, £18 tax and £20 running costs. That's £218 ( tax deductible ) but that now makes £1755.

There are always other things to consider like paying his holiday pay 4 weeks per year whilst he's not earning you any money.

So, as an average to employ someone working on their own  theyre gonna cost you around £1900 per month.

£1900 / 20 days is £100 a day give or take a few quid to cover all your costs, before you start making anything from them.

[robertphil]

you are paying top dollar in wages there- your jobs will need to be priced pretty high if you are going to be able to carry it off

i work on that an employee must bring in double or more his wages ,then its allrite

[Ian Lancaster]

To cover all costs and turn a worthwhile profit you shouldn't pay an employee more than 35% of the revenue he generates for the company.

[Richard iSparkle]

To cover all costs and turn a worthwhile profit you shouldn't pay an employee more than 35% of the revenue he generates for the company.

this sounds like a good rule of thumb.

the other thing with employees is they won;t bring in new work like you do, and they will get more complaints and cancellations than if you were doing it yourself.

i incentivise by staff to bring in work, but i havent found a way of making them pro active with getting new work despite this. 

[robertphil]

i personally find employees rake in far more new work than if i was on my own because they are keen and hungry looking

[Richard iSparkle]

i find that if they are good at bringing in work, they dont tend to be as good at the cleaning side of things.  if they can bring in work, and do the cleaning...  then you are probably in trouble as they have all the tools to set themselves up on their own

[robertphil]

i find that if they are good at bringing in work, they dont tend to be as good at the cleaning side of things.  if they can bring in work, and do the cleaning...  then you are probably in trouble as they have all the tools to set themselves up on their own

i agree- but long as they have no driving licence theres little  to fear

[PAUL ERITH]

Thanks for the replies now i have a rough idea of whats needed as a minimum day rate.

Thanks PAul

[Richard iSparkle]

i find that if they are good at bringing in work, they dont tend to be as good at the cleaning side of things.  if they can bring in work, and do the cleaning...  then you are probably in trouble as they have all the tools to set themselves up on their own

i agree- but long as they have no driving licence theres little  to fear

  it;s interesting how we each set up our businesses differently.  i wouldn't employ someone who couldn't drive as it means they're reliant on me being there every day.  if they can all drive I've got more flexibility and cover too.

[telfordwindowclnr]

To cover all costs and turn a worthwhile profit you shouldn't pay an employee more than 35% of the revenue he generates for the company.

Ian, this is hypothetical, but I can deal with %'s fine!  I pay my guy £70 a day.  He earns me between £200-£250.  Am I paying over the odds, not getting him to earn enough daily or does that sound about right?

[Tom-01]

To cover all costs and turn a worthwhile profit you shouldn't pay an employee more than 35% of the revenue he generates for the company.

Ian, this is hypothetical, but I can deal with %'s fine!  I pay my guy £70 a day.  He earns me between £200-£250.  Am I paying over the odds, not getting him to earn enough daily or does that sound about right?

Solar Steve, is that what he earns you after paying him and all his costs, so he's doing £300 - £350 worth of work for you? Sounds about right if so.

[telfordwindowclnr]

To cover all costs and turn a worthwhile profit you shouldn't pay an employee more than 35% of the revenue he generates for the company.

Ian, this is hypothetical, but I can deal with %'s fine!  I pay my guy £70 a day.  He earns me between £200-£250.  Am I paying over the odds, not getting him to earn enough daily or does that sound about right?

Solar Steve, is that what he earns you after paying him and all his costs, so he's doing £300 - £350 worth of work for you? Sounds about right if so.

It's hypothetical. I'm working in %'s of the figures I present. If he were to earn that before costs.

[Tom-01]

Ok got ya.

[steve rix]

To cover all costs and turn a worthwhile profit you shouldn't pay an employee more than 35% of the revenue he generates for the company.

Spot on

[Smudger]

I'm with you on this Richard - all the staff can drive this leaves me free to move away from the glass and develop the biz further
Quick late night calculations and we are around the 35% mark but there are bonuses on top for quality and attendance

Darran

[geoffreyspecht]

To cover all costs and turn a worthwhile profit you shouldn't pay an employee more than 35% of the revenue he generates for the company.

Ian, this is hypothetical, but I can deal with %'s fine!  I pay my guy £70 a day.  He earns me between £200-£250.  Am I paying over the odds, not getting him to earn enough daily or does that sound about right?

what about vat on top of that

[Moderator David@stives]

We worked out the true cost of employing in my company, we use mostly one man/one van

mine was £19.70 plus vat per hour

Wages
NI
Van
Van depreciation
Equipment
Holiday pay
Diesel
Employer admin costs

Have a look at this free calculator
 http://www.accountingservicesforbusiness.co.uk/calculators1/true-cost-of-an-employee/

[Smudger]

Thanks for the good post Dave

Darran

[gary evans]

Hi Dave

Good post, I am interested in mine now. What is your pay. Hourly / Daily or Weekly.

I can see where my money difficulties come form, we are low on work & my pay percentage is above 50% regularly

Gary