FLAT RATE, SALARY, COMBO

[DUFRESNES]

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[bantar]

Is your $500 bonus monthly or weekly?   It equates to either $2.77/hr or $12.50/hr.  Guessing monthly.  50% Insurance guessing $700/employee, so $350 = $1.94/hr.  2 weeks vacation = $41*80 = $1.64/hr.   Matching 401K @ 6% match = 41*.06=2.46*5= $1.23/hr.  This all adds up to $7.58 (or $7-$8/hr) on top of their base pay.   

Staying with your top rate ($41 + $8) = $49 * 2000 = $98K.  (used 2000 hours as the 80 hour vacation is in the $8 already).

Someone told me a long time ago, that your employees will not understand / comprehend how much they are making, especially with intangibles.  He liked to write their hourly pay on their paychecks, so that they would SEE their actual pay rate.  My top earning GS Techs continually under guess their pay rate.   I have one leaving now that is taking a pay cut, but thinks he's getting a raise.  Now, if they offer him overtime, he will make more than here.  He randomly gets overtime, but we keep it to a minimum as best we can.    What I've noticed is that employees with little fiscal control, like to make their lack of money in their account my problem.  "My account is empty because your are not paying me enough."  Mind you, they are ordering food in via Uber Eats, buying expensive drinks from the Walgreens next door and have other expensive vices. 

Next, does this employee have insurance?  Does he contribute to his 401K?   Is the bonus regularly hit?  These are valued at $0 if he does not partake.   And they are valued at $0 if he doesn't understand.   I'm sure that you explained all of this to him.  It could be that the other shop has some perks too that cancel yours out.

Is he making a SALARY at the other place?   If so, his income is guaranteed.  He does not get penalized for picking up kids, etc.   Having certainty in one's income is high ranking in quality of life.   If flag, time will tell.

I have 1 tech making $1800/week, + $5/hr flag bonus ($45/hr + $5 = $50).   I have another making $35/hr + $10/flag hour and an apprentice making $20/hr + $6/hr.  Hourly guys are paid at 1.5X (of base+flag) if they work OT. And I don't have Insurance Matching, 401K or Vacation.  Next on my list to add is Insurance matching.    While I don't have a vacation benefit, I've randomly paid bonuses (of 1-5 days) in lieu of vacation/sick time or kept people on the payroll just to help them.    Have a manager/service writer out with a heart attack, and kept him on payroll for about 5 weeks without being here.   (He's still out, but now on leave.  I hope for him to return in 2-3 weeks.   Still a maybe).

I like your question.   It had me doing math and I see the costs of benefits that I'm not offering in black and white.   It's going to help me too!   

P.S.  Just before posting this, I added 50% matching on health insurance as a new benefit.   I just polled everybody and have a 3-4 that want to sign up.   Only 2 were willing to sign up with 0% matching, because they are young and their insurance rates are very low.   I want my techs to have insurance so that they stay healthy!    Thank you.

[DUFRESNES]

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[Andre R]

We pay our techs hourly with overtime and a performance bonus on their flagged time when they hit a set time . We pay %70 of health insurance, payed dental insurance payed life insurance, payed uniforms, gloves 

6 holidays 1 week of vacation after the first year and 2 weeks after 3 years parts are at cost. Performance bonus is $2 per flagged hour at 35 hours,$4 at 40 hours, $6 at 45 hours and $8 at 50 hours and above. The SW is $15 per hour with overtime

and a percentage of sales that starts at %1.25 when we reach $15000 in sales for the week and escalates by %.25 at every increase of $2500. The % tops out at %2.50 and $30,000 of sales and above. All our equipment is 5 years old or newer with factory scanners and software. 

 

 

[DUFRESNES]

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