How do you pay your employees?

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LeMarque

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I recently opened my shop and have tried hiring a few 'helpers'; to do the vacuuming, glass and sometimes, just to check out their quality of work, the entire car.

So, if, say a Subaru Forester comes in that hasn't seen a detail in years with rubber mats, carpet floor mats, a cargo mat, plastic bumpers, trim, etc.; that can be a really time consuming job. Were talking full interior exterior detail.

I've tried paying guys by the hour but end up losing money.

My question is, do any of you pay a percent of the total job cost or some such method of compensation?

If so, I'd really appreciate knowing your formula.
 
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LeMarque said:
I recently opened my shop and have tried hiring a few 'helpers'; to do the vacuuming, glass and sometimes, just to check out their quality of work, the entire car.

So, if, say a Subaru Forester comes in that hasn't seen a detail in years with rubber mats, carpet floor mats, a cargo mat, plastic bumpers, trim, etc.; that can be a really time consuming job. Were talking full interior exterior detail.

I've tried paying guys by the hour but end up losing money.

My question is, do any of you pay a percent of the total job cost or some such method of compensation?

If so, I'd really appreciate knowing your formula.
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If you're doing high volume (10 a day) I would pay 65% of gross. Kinda like the way hairdressers do. Give your employees room for advancment (they're going to take it anyway). If they land their own client, take 35% (they supply supplies) for use of your space. Try and be as helpful as you can and they'll appreciate you more
 
Flash Gordon said:
If you're doing high volume (10 a day) I would pay 65% of gross. Kinda like the way hairdressers do. Give your employees room for advancment (they're going to take it anyway). If they land their own client, take 35% (they supply supplies) for use of your space. Try and be as helpful as you can and they'll appreciate you more
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Thanks for the input.

It's close to what I was thinking; 30% of gross. Plus they get tips...
 
LeMarque said:
Thanks for the input.

It's close to what I was thinking; 30% of gross. Plus they get tips...
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Of course (tips)

I would try to limit the amount of time your help spends talking with the customer. Thats your job
 
LeMarque said:
I recently opened my shop and have tried hiring a few 'helpers'; to do the vacuuming, glass and sometimes, just to check out their quality of work, the entire car.

So, if, say a Subaru Forester comes in that hasn't seen a detail in years with rubber mats, carpet floor mats, a cargo mat, plastic bumpers, trim, etc.; that can be a really time consuming job. Were talking full interior exterior detail.

I've tried paying guys by the hour but end up losing money.

My question is, do any of you pay a percent of the total job cost or some such method of compensation?

If so, I'd really appreciate knowing your formula.
Click to expand...

wgilles said:
I work for ADP...give me a call ;)
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@OP...

Hopefully wgilles and his ADP services will also be able to assist/educate you on business expenses/deductions...such as Worker's Comp. and other insurances/benefits, that just may be required of you, having a 'Detailing Business' in your State, to provide for employees...and even yourself!

A PM to Ago forum member B&B Tennessee might be a worthwhile venture as well.

:)

Bob
 
FUNX725 said:
@OP...

Hopefully wgilles and his ADP services will also be able to assist/educate you on business expenses/deductions...such as Worker's Comp. and other insurances/benefits, that just may be required of you, having a 'Detailing Business' in your State, to provide for employees...and even yourself!

A PM to Ago forum member B&B Tennessee might be a worthwhile venture as well.

:)

Bob
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You can avoid all this by paying them as independent contractors
 
If you want to use a true "helper" as opposed to an employee you may want to talk to a church in your area. Lots of teens at the churches are looking for ways to pay for summer camp. The church may be able to provide you with some "volunteers" to help around your shop. In return you could make a "donation" to the church to help them pay for their camp. You can be more generous with what you pay them because you don't have the costs associated with Employees. There are obvious tax advantages for you with all those donations.
 
rustytruck said:
If you want to use a true "helper" as opposed to an employee you may want to talk to a church in your area. Lots of teens at the churches are looking for ways to pay for summer camp. The church may be able to provide you with some "volunteers" to help around your shop. In return you could make a "donation" to the church to help them pay for their camp. You can be more generous with what you pay them because you don't have the costs associated with Employees. There are obvious tax advantages for you with all those donations.
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I work with the youth groups at my church often. I find most of the teens to be dedicated hard workers, but at the end of the day there is only so much you can ask of them. Usually after the 2 hour mark their volunteerism starts to exalt.

I like the idea though. Maybe you could rotate them in shifts and limit the number so it doesn't become unmanagable? Kinda like what McDonalds does!

:)
 
Flash Gordon said:
You can avoid all this by paying them as independent contractors
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:iagree:


I currently have 3 guys that work for me and they are all paid in this fashion. For a small business you may find it tough to do it any other way. I've tried ADP and others, but let's be real, every penny counts and giving them to companies like ADP can hurt that bottom line.
 
rustytruck said:
If you want to use a true "helper" as opposed to an employee you may want to talk to a church in your area. Lots of teens at the churches are looking for ways to pay for summer camp. The church may be able to provide you with some "volunteers" to help around your shop. In return you could make a "donation" to the church to help them pay for their camp. You can be more generous with what you pay them because you don't have the costs associated with Employees. There are obvious tax advantages for you with all those donations.
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I like this idea. I would be a great way to give back at the same time!
 
Flash Gordon said:
Oh, and your welcome!

:)
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Just thought of another 'gotcha'. When you pay by percent of job/gross, due you require that they do their own prep, i.e. get their two bucket filled, refill any spray lubes, general clean up?

Thanks in advance
 
FUNX725 said:
@OP...

Hopefully wgilles and his ADP services will also be able to assist/educate you on business expenses/deductions...such as Worker's Comp. and other insurances/benefits, that just may be required of you, having a 'Detailing Business' in your State, to provide for employees...and even yourself!

A PM to Ago forum member B&B Tennessee might be a worthwhile venture as well.

:)

Bob
Click to expand...

My wife's an Accountant and I know all about ADP and payroll expenses. In a previous life I ran an allied business w/20 employees and paid everything, up to and including the entire cost of their health care, etc.

Truth is, I've gone thru 1/2 a dozen guys in a short time, some were thieves, most were unreliable. Till the right person comes along I am not going to pay for unemployment, workman's comp., etc. just 'cause they needed a few bucks to pay their monthly car payment.
 
Flash Gordon said:
You can avoid all this by paying them as independent contractors
Click to expand...

That's a tricky one. As I mentioned, my Wife's an accountant and the state hammer's small business's with audits if the show (even true) contract labor.

Contract labor is required to supply all that's required to do the job. That would mean everything from soap to towels, etc.
 
LeMarque said:
That's a tricky one. As I mentioned, my Wife's an accountant and the state hammer's small business's with audits if the show (even true) contract labor.

Contract labor is required to supply all that's required to do the job. That would mean everything from soap to towels, etc.
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I'm guessing that would differ by state would it not? For instance in Texas the vast majority of construction workers are paid ~contract labor. I was one and I supplied my labor, nothing else. Some need their own tools, ladders, etc., but never materials.
 
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