[jay moley]

Alright lads,

I currently pay my two employees £100 a day. I'm wondering whether it would be better to incentivise them. Anyone do it? If so how does it work? What percentage etc.

Also my current target turnover a day from one van is £350. This is domestic work with 2 workers on the van. Be interested to see people's views on whether this is about right or too little.

Cheers

[Stoots]

Alright lads,

I currently pay my two employees £100 a day. I'm wondering whether it would be better to incentivise them. Anyone do it? If so how does it work? What percentage etc.

Also my current target turnover a day from one van is £350. This is domestic work with 2 workers on the van. Be interested to see people's views on whether this is about right or too little.

Cheers

You pay them £100 each so £200 a day and turnover is £350

So £150 a day profit

By the time you add in holiday, nat ins, running costs etc surely the profit must be even less?

I'd say that was quite poor margins.

[Smudger]

Alright lads,

I currently pay my two employees £100 a day. I'm wondering whether it would be better to incentivise them. Anyone do it? If so how does it work? What percentage etc.

Also my current target turnover a day from one van is £350. This is domestic work with 2 workers on the van. Be interested to see people's views on whether this is about right or too little.

Cheers

You pay them £100 each so £200 a day and turnover is £350

So £150 a day profit

By the time you add in holiday, nat ins, running costs etc surely the profit must be even less?

I'd say that was quite poor margins.

thats not profit - thats what's left BEFORE allowing for their holiday, insurance, pension, van costs etc... way to little
£275 to £325 is aimed for 1 man 1 van and £550 for a 2 man team ( windows only ) more if its s/f/g - cladding work etc..

Darran

[jay moley]

Alright lads,

I currently pay my two employees £100 a day. I'm wondering whether it would be better to incentivise them. Anyone do it? If so how does it work? What percentage etc.

Also my current target turnover a day from one van is £350. This is domestic work with 2 workers on the van. Be interested to see people's views on whether this is about right or too little.

Cheers

You pay them £100 each so £200 a day and turnover is £350

So £150 a day profit

By the time you add in holiday, nat ins, running costs etc surely the profit must be even less?

I'd say that was quite poor margins.

thats not profit - thats what's left BEFORE allowing for their holiday, insurance, pension, van costs etc... way to little
£275 to £325 is aimed for 1 man 1 van and £550 for a 2 man team ( windows only ) more if its s/f/g - cladding work etc..

Darran

To clarify they are self employed and yes they have their own work.

Is £550 an 8 hour day?

What's your average price per house?

Average amount of jobs/houses a day?

Thanks

[jay moley]

Alright lads,

I currently pay my two employees £100 a day. I'm wondering whether it would be better to incentivise them. Anyone do it? If so how does it work? What percentage etc.

Also my current target turnover a day from one van is £350. This is domestic work with 2 workers on the van. Be interested to see people's views on whether this is about right or too little.

Cheers

You pay them £100 each so £200 a day and turnover is £350

So £150 a day profit

By the time you add in holiday, nat ins, running costs etc surely the profit must be even less?

I'd say that was quite poor margins.

What numbers do you do?

[Smudger]

in answer to your question I don't think PAYE can be sole based on %% things like minimum wage come into play

However you can run a bonus system - for example the guys have £300 a quarter bonus - however work must be completed in a timely manner ( ie.. turnover must average at least XX over each month ) - no complaints - no sick - good driving practise  and  few other bits

for each infringement they loose 5% of the bonus - if they get a repeat infringement in a period they loose 10% of the bonus
this helps keep the work rate high and the complaints very, very low - and no sick either 

Darran

[Smudger]

as self employed its a different kettle of fish - so a % is fine - they can take as long or as little time as they want

7.5 hour day

varies - some days over 30 other days 12 - depends on the round and the size of the house - single man figures

Darran

[Smudger]

I don't like 2 man 1 van -  our rounds don't suit that work very well


typical 2 man day would be 35 to 45 properties


Darran

[jay moley]

I don't like 2 man 1 van -  our rounds don't suit that work very well


typical 2 man day would be 35 to 45 properties


Darran

I've thought about going to 1 man 1 van.

I'm guessing based on your figures my employees are just not working hard enough. It's not as if the work I give them is too far away, driving time between job.

Any other reasons I'm missing as to why the turnover is low?

Our work is well priced so can't be that.

[Smudger]

I would never say not working hard enough - what is well priced for some is poor for others

My experience has found that 2 men never double the work of a single man unless its a commercial job and no moving  - as all those stop starts (non productive times) are in effect twice the time of a single man

2 men unless really in tune rarely work efficiently  there always is overlap so again non productive time

lunch breaks tend to drift as they natter the hour away....

if your pricing the work you will know how long a job takes from there set them a daily target of work say £400 for 7 hours
- you say todays rate is £90  for reaching this target however get £500 of work done and there is an additional £40 bonus

so you are now paying a max £260 and getting £500

hopefully they start to work more efficiently, no fAg breaks, shorter lunch breaks  and so on....

Darran

[jay moley]

I would never say not working hard enough - what is well priced for some is poor for others

My experience has found that 2 men never double the work of a single man unless its a commercial job and no moving  - as all those stop starts (non productive times) are in effect twice the time of a single man

2 men unless really in tune rarely work efficiently  there always is overlap so again non productive time

lunch breaks tend to drift as they natter the hour away....

if your pricing the work you will know how long a job takes from there set them a daily target of work say £400 for 7 hours
- you say todays rate is £90  for reaching this target however get £500 of work done and there is an additional £40 bonus

so you are now paying a max £260 and getting £500

hopefully they start to work more efficiently, no fAg breaks, shorter lunch breaks  and so on....

Darran

Not sure how they would respond to me dropping their money to £90.

But you're saying £130 each if they hit £500?

[Smudger]

yes - but your £100 IMO is too high a start point - certainly for just £350 - even though they are self employed

really it needed to be a higher figure - £400 a day

if you can't be tough and set out new rules then you need to juggle the figures somehow to better suit you

without knowing what you charge and how long it takes to do a house which will give you an hourly turnover rate I can't say weather they are reaching their potential or not

why do you hit in a day on your own, or with a second man ?

Darran

[jay moley]

yes - but your £100 IMO is too high a start point - certainly for just £350 - even though they are self employed

really it needed to be a higher figure - £400 a day

if you can't be tough and set out new rules then you need to juggle the figures somehow to better suit you

without knowing what you charge and how long it takes to do a house which will give you an hourly turnover rate I can't say weather they are reaching their potential or not

why do you hit in a day on your own, or with a second man ?

Darran

A lot of these problems have arisen as I've been out of work for 6 years and my Dad, whose massively busy with is own non window cleaning work, took over the business.

He had to get people in to cover the work as I was out of the game and unable to run it.

So I don't have figures on what one man can do.

The other worry I have is that I rely on these guys. If they leave because I change the pay structure I'm in trouble,

That said changes need to be made.

If I kept them on £100 a day what would you incentivise them on?

[Stoots]

I think you need to work out the total running cost per day for a 2 man van

even if they are self employed, im assuming they are using your van, fuel, ins, equipment etc ?

so whats the true cost per day ? 200 in wages plus what else ?

[AuRavelling79]

Okay you are at a base where you rely on them and pay them £100 a day and get £350 back. That will give you something if the £350 is without fail and the running costs are low in fuel, wear and tear etc.

If you don't want to rock the boat I would tell them that costs have risen (the van, equipment and poles needs something put by for replacement - stuff they can understand) and you need them to do (say) £380 a day but that you are putting in a bonus where if they hit an average of £380 every day then at the end of the calandar month they get a bonus of (say at £380 x 20)  £100 each for the month.

Then if they do it for a quarter they get a further £100 each for the quarter.

I would also put up  prices and gradually increase the gap between what they get and what they make for you so that in say two years they are being paid £105 each a day and getting better bonuses but making (say) £425.

[Dry Clean]

yes - but your £100 IMO is too high a start point - certainly for just £350 - even though they are self employed

really it needed to be a higher figure - £400 a day

if you can't be tough and set out new rules then you need to juggle the figures somehow to better suit you

without knowing what you charge and how long it takes to do a house which will give you an hourly turnover rate I can't say weather they are reaching their potential or not

why do you hit in a day on your own, or with a second man ?

Darran

Strange reply, remember its the self employed guys who are doing all the work and he's getting £150 a day for nothing more than renting them the custom, if I where him I wouldnt rock the boat.

[Smudger]

maybe, maybe not - only going on what info we have - if they are in their own vans with own equipment and water then maybe, its worth it - perhaps wrongly I assumed the van and water was the OP's

but generally 350 for 2 men is IMO a poor return

Darran

[Plankton]

This is how I see it, 350 a day if ligit is hitting 84k so take your vat into account and your ehh not making much.

[NWH]

You need to earn back double what you are paying out to make it worth while remembering you are not going to get paid straight away from every job that is done,they will want paying at the end of the week-month regardless.
At the end of the month when you’ve paid out 2grand in wages you might still be waiting for over 2 grand in outstanding payments,as the months tick by you’ll get some back but still be owed the above on average,to make it work you need cash in the bank from some source whether it be an overdraft etc to make it run smoothly.
The time you’re Tax bill arrives if you are not taking enough for yourself and van etc it won’t seem worth it.

[NWH]

Sorry I meant 4 k in wages and outstanding payments.