How much to pay an employee

[jojam]

We like you SAWDUST took on our groundie.All i would say is beware of the hidden costs ie holideys and extra national insurance.We paid ours a good wage because as said before i thought he was worth keeping,then after 18 months he started to lose interest.So we parted company and he's taken a different career route.I would never have an employee again,they cost too much and this one was a millstone round our neck!That's not to say yours will be a bad experince SAWDUST.Back to subbies for us.

[paullen]

I'd say start him on a low wage and sit down with him and plan out pay rises with targets or even just a bonus if the weeks work gets done on time/early. Getting him to feel like he's responsisble for the job making money and not just an employee is important.

 

Pay doesn't motivate, but not being paid enough demotivates!

[Hodge]

i have had him as a subbie up to now as he told me he had registered self employed. He had not.

 

because i use him up to 4 days per week i have been told to employ him.

 

A subbie i have been told must have own insurance and equipment, this is what makes them a bona fide subbie, the fact you cand send them to do a job without you being there etc. i am confused by it all tbh.

[Justme]

These links might help

 

ONE

TWO

[Zenfordinner]

Jojam has a good point regarding the hidden costs. The cost of your employee includes 24 days paid holiday (I think it is still 24), ppe,insurance(vehicles & public liability), any damages to your equipment and client's property will ultimately be your responsiblity; if he becomes injured or ill,you cannot just sack him. Also, employees have recourse in terms of dismissal.

 

An employer is obliged to provide a written contract to the employee within two months of the start date. Contracts might sound tedious but it gives you the opportunity to set out rules/protocol. So, you could state that holidays are to be agreed (or something along those lines, to avoid him taking two weeks off at your busiest time of year,for example).

 

You could also include a clause that he agrees not to set up own business within x number of years. Such details could benefit you and your investment in an employee.

 

It might, in the long-term, be worth a call to a solicitor regarding the scope of contract; and adding up the cost of holidays,ppe,insurances, and wages for a year (perhaps to start,use minimum wagefor a guage). After you figure out how much your employee will, figure out how much they will earn for you. Will they earn (increase your income,contribute sufficiently to cover your costs) their pay?

 

Wages must be sustainable, so whatever wage you start him off, you will want to be able to increase it a little on a yearly basis (to keep up with inflation, give incentive/show appreciation).

 

Just a few thoughts that I hope are of some use to you.

[Tony Croft aka hamadryad]

A man is worth what you are willing to pay, including investments like training ppe etc

 

I would gladly take a cut for an employer who took my CPD as seriously as I do and would commit myself in the long term for it.

 

Despite earlier comments money IS a motivator, or pricework would not exist!

 

Give an employee the oportunity to increase YOUR profitability for an increase as reward and be suprised by the outcome.

 

Just a few to add, maybe of use, maybe not!

[danjackson]

hey dude.

 

when i started, my boss said he wud provide me with the absolute basic gear to do the job, yeah thats chainsaw wellies to me and you:scared1: and if i wanted anything else i wud have to pay extra my self.

 

duno what other guy's reckon, but personally, a person's age is irrelevant, if he is a good bloke, then good money, bad bloke, then bad money, just b honest, cant say fairer than that.

[Rupe]

Not at all!! If I took on a 30 year old newbie I would pay him more than an 18 yr old newbie regardless of experience!!

 

Basic PPE is all thats needed. My first employment I was given a harness, a length of rope and a chainsaw. It was up to us if we wanted karabiners we had to buy them!

 

I'm not saying it should be like that now, but you can't give them everything.

 

And holiday pay does not have to be 24 days on top of normal pay. You spread there normal pay out over 52 weeks so they get a consistent income. i.e. 70 a day worked is paid as 60 a day including holidays! (roughly)

 

Then you only need to pay enough to keep them from going elsewhere! Its an employers market at the moment, its competition just like quoting for work. What can you provide for the money. 60 a day learning new stuff all the time is better than 80 a day in a dead end job learning nothing job!

 

Its nothing to do with good bloke bad bloke, its to do with good employer bad employer! Create a package that is mutually beneficial and go from there.

[Quickthorn]

i have had him as a subbie up to now as he told me he had registered self employed. He had not.

 

 

You know your bloke better than I do, but IMHO, that's not a good start.

[Alex Reid]

Rupe,

 

I agree with most of what you have said but, I am 20 years old and have all of my own kit even though I am a student all I am short of is a chainsaw. But if a 30 year old bloke came to you with his kit like me and the same experience how you justify paying him more than myself?

 

Surely how hard someone works determins how much they get paid depending on wether they are a climber or a groundie?

 

alex