Employee Wages

[Bridget]

Hello PWN!!
It's been a while and I'm glad to see that the loyal, informative and straight forward folks are still a part of this great website.

I've searched previous posts and couldn't find one that touched on what wash companies are paying their employees.

In the booming days of power washing we paid our guys well, they recieved raises that now in hindsight were a tad too generous. Now with the down turn in the economy and the loss of business, these well paid employees are really cutting into our already slim profit margins.

Have you guys discussed (of course based on region) what the fair market rate is for your wash crews?

Bridget

 

[Scott Stone]

Bridget,
This is a common problem, and it can end up biting you in the end. You could explain to your crews that when they were making the original pay scale that it was based on a percentage of gross revenue, and cut their pay to that level, or you could just automatically convert them to such a system, and let them quit if they want.
As for wages, I am still at the same type of scale that I was before. I am running leaner, but my guys are still currently starting at $12 an hour, and get about a $1 an hour raise per year. I have not seen the top of what I pay, yet, but once they start getting to $15 an hour, the review is more serious on what we are paying. If the return on their work does not approach a 4 times return on pay, they are starting to get seriously looked at. If the approach a 3 times return, they are probably going to be on the outside looking in.
So say a $12 an hour guy is grossing $48, he is okay. If he is down to $36 an hour, he is gone. Everyones' experience and preference is different, and I know there are people that demand a $100 an hour return, but, I make a decent living keeping things at this level.

 

[Bridget]

Scott,

This is exactly the information we needed. Like your company we gave $1 raises. Here is something else to consider, I work in the corporate arena as well as helping Gordon run United and typically folks receive a 3-6% raise every year. Based on what we've done with our $1 raise, we've given our guys over an 8% raise every year.

Based on your suggestion, we're going to make some changes this week.

Another question: Do you provide cell phones for your guys?
If not, how do you compensate them for the business use of their cell phones?

 

[Mark]

Bridget,

Good to see you back at the PWN.

Good discussion on wages, and compansation.
Maybe someone else want to add their thoughts?

 

[Bridget]

Thanks Mark...good to see ya!

 

[Scott Stone]

I am sorry that I did not get back earlier. It has been a very busy week, which is nice.

We used to provide cell phones, and dont anymore. As for compensation, well, I don't do that anymore either. My guys all use the same carrier, by coincidence, so we call each other free. Right now, with my carrier, Verizon, an additional phone line is $10 a month. Part of the reason I stopped providing cell phones was due to misuse. I looked at the phone bills one month, and one of my employees that worked 160 hours for the month, was on my cell phone for half of them. I decided that it was really hard to wash a truck when you were always talking on the phone, and took it away. I also instituted a no cell phone rule. I even enforce it by spying on employees. People have mostly been compliant, but do not realize how much time is lost texting and calling all day and all night long. Anyway, discipline does not happen right away. It happens when another employee complains, and I catch the guilty party multiple times, and am certain that it has been inhibiting their work.

 

[Bridget]

Scott,
Thank you for your response. I agree with you on the cell phone issue. Its reassuring to know that we're not the only ones who have to make these types of adjustments with staff.

We've made that wage adjustment and it went well. Now we'll introduce some other cost cutting efforts to include company provided cell phones.

Have a wonderful week!

Bridget

 

[FCPWLLC]

We start out at $12/hr and go from there. Shirts provided but not Pants. Cell Phone only for leads.

As for cost cutting, I really don't focus on that. We try to educate and get the $$ amount we need to cover all expenses including my Salary as well as good employees. Customers don't dictate my lifestyle or Salary. I set them and they either pay it or I move on to the next well-informed customers that know you get what you pay for.