Commission for staff/Finders Fee?

[jrose]

Hi all,

 

Got a question, and want to see how you all deal with it as it's come up a couple of times recently.

 

Most of our work is commercial, with the odd domestic job thrown in. But domestic isn't really my bread and butter.

 

Some of the lads who work for me have their own kit (climbing kit, saws, pickup). They have been offered jobs by neighbours, friends, aunties, people they bump into at the petrol station.

 

A couple of times, the job offered has required either kit they don't have or more time/staff than they can cope with - chipper, tipper, rigging, big saws, etc. They have approached me to go in on the job with them, and got offended when I don't want to split the cost 50/50? Despite me paying diesel, using kit, insurance, etc...

 

I understand the feeling that they brought the job in so they deserve some sort of bonus, but not to that extent! Anyone else pay a commission/finders fee to staff, and if so what percentage? 

 

I'm thinking of writing up a more formal agreement - something along the lines of 10% of the job price in addition to normal day rate?

 

Sorry for the slightly rambling tone of the post.

[john meehan]

I think you are better just hiring gear to them, that way nobody feels like they are missing out.

We pay x amount then can use what we want.

Normally use staff from work and everybody gets paid when the person who’s job it is is.

[jrose]

The problem with hiring gear out:

 

1. My trucks are on the drive, with my name on the side. They may be wearing their work shirts, which again have my name on. If something goes wrong, or they have a disagreement with the customer it's my name that suffers, even if I had nothing to do with the job other than handing the keys over on a Saturday morning.

 

2. Any job that ever gets offered I (and other actual tree businesses) won't stand a chance, as the lads will just put in a quote cheaper than I can. I understand Saturday work will happen, and they're self employed so it's up to them to declare it. But it does have an effect on people trying to run a company, rather than make up a bit extra on a weekend.

[treevolution]

I have found the easiest way is to 

take the whole job on yourself as the company, and ask how much the staff member would like as a finder's fee which you could add at the quote stage.

 

If you get the job then book it in to your work schedule and hopefully the staff member will be happy with the extra income from the job.

 

 

[Steve Bullman]

I think a finders fee is a good idea, or what incentive do they have to put the work your way.  50/50 is unreasonable though, unless of course they put twice the price on it that you would have.  Your suggestion of 10% seems reasonable to me, again assuming they priced it right.

[Coletti]

I think a 10% finders fee is fine, if they aren happy with that then simply give them a rate to hire you, truck, chipper and do it that way. That way they know from the off what everything is going to cost and they can gauge from there what to quote and what extra they will get. 50/50 split is a silly expectation, I can understand themwanting to make more money but when you're bringing more to the table you need the larger slice of pie

[billpierce]

Yeah I reckon just give then a day rate for you and the kit your taking. That way it's dead simple and the jobs all their responsibility

[Chrissy]

5 hours ago, john meehan said:

I think you are better just hiring gear to them, that way nobody feels like they are missing out.

We pay x amount then can use what we want.

Normally use staff from work and everybody gets paid when the person who’s job it is is.

I wouldn't go this route.  I've seen it go wrong a hundred times.  Chipper breaks down, something gets broke etc.  Could be that the breakage was inevitable due to the age of the chipper, but when faced with the bill the owner will most likely try to blame it on the hirer.  Sour grapes all round.

 

A commission is a great idea.  Gets the guys to actively start putting work your way rather than looking for private work or cheeky cash jobs when on site doing your jobs.  If they want to hire kit tell them to hire it from a company who is properly set up and insured to do that.  Add on to that they will likely need their own plant hire insurance, public liability and employers liability, private jobs soon become less attractive.

 

Tell them what you want as a company to earn as a minimum for a 3 man team say, then whatever they price it above that rate they could have 50% of, thats on top of their day rate.  Everyones happy, and jobs get priced properly assuming they don't screw up on the timing.

[joshuatree]

Used to work for a company that did 10%. Worked pretty well. I wouldnt personaly want to borrow my bosses truck and chipper tho. What happens if you crash it on your own job?

[topchippyles]

Can you draw up a bill of quantities and break it down item by item /job by job/Hourly rates that can cover both you and them so everyone knows exactly what the cost will be for both parties,My lads use my kit all the time on their own jobs where it be a trailer/excavator ect ect and we never have issues.Just make sure all insurances are in place and any none payments are down to them and not to you so in that case you will still get paid.That way they will realize what it takes to run a full business with all the overheads involved,Cash jobs are always nice though. Feck the tax/vat man. ?? .

 

Tell them to take one of these below if it goes tits up

 

 

 

Edited September 26, 2018 by topchippyles