Question regarding how you pay your employees

[pezza3434]

How do you pay your employees or contractors that work for you.

Do you pay them per job done or by time spent?

I understand that you will be paying a minimum 'day rate' as by law but I know a plumbing firm, for example, that pays different amounts depending on the amount of the jobs the individual did that month.

Looking forward to your responses. Thanks!

 

[S Isaac]

If they are employees, I'd imagine that they have a contract and need to be paid the agreed rate in that contract (hourly/annually etc).

I sub-contract work and it's all done on a job by job basis. But essentially worked out on a day rate multiplied by how many days we agree it should take.

 

[pezza3434]

That makes sense when sub-contracting work. Thanks for your response.

 

[Scalloway]

Employees have to be paid at least the minimum wage for each hour they spend at work.

 

[BuilderMCR]

A couple of my subbies just work on a day rate and we agree approx how many days before work starts. Others (mostly sparks) work on a fixed price.

 

[pezza3434]

If they are employees, I'd imagine that they have a contract and need to be paid the agreed rate in that contract (hourly/annually etc).

I sub-contract work and it's all done on a job by job basis. But essentially worked out on a day rate multiplied by how many days we agree it should take.

A couple of my subbies just work on a day rate and we agree approx how many days before work starts. Others (mostly sparks) work on a fixed price.

Thanks for your replies. How then do you handle timesheets? Do you care about what jobs they have done or simply what about of time they have worked?

 

[BuilderMCR]

My sparks work on a per point price (per socket, per switch, per light) time sheets don't really matter for this. I don't care how long it takes them because we've agreed a fix price. If they want to make a decent wage I'm sure they're getting their jobs done as quick as they can. Time is money and the longer they spend doing a fixed price job the less money they're making per hour.

The guys on a day rate I don't bother with time sheets either. I know how much they can do in a day and most of the time I'm on site anyway. I don't think they'd take the piss because there's loads of tradesmen that need work and they know you can get rid of them and have someone else in the next day.

They all have their own labourers so I don't need to worry about them cause I'm not the one paying them.

I think I'm pretty lucky with my lads though. I know I can trust them and anyone I don't trust I delete their number from my phone.

 

[pezza3434]

My sparks work on a per point price (per socket, per switch, per light) time sheets don't really matter for this. I don't care how long it takes them because we've agreed a fix price. If they want to make a decent wage I'm sure they're getting their jobs done as quick as they can. Time is money and the longer they spend doing a fixed price job the less money they're making per hour.

Thanks a lot for your reply. It makes complete sense that you don't care about time-sheets for your sparks, but how do you keep track of what jobs they have and have not completed? Do they give you a job sheet at the end of the month?

Thanks!

 

[BuilderMCR]

They tell me they've completed the work. I check it out, make sure the customers happy with everything, the customer pays me, I pay them.

 

[S Isaac]

Pretty much the same here. They do the job, I check the work and customer is happy and pay them. I'm not busy enough to need to worry about tracking each element of each job. Our typical job can range from £3k to £10k with various tradesmen involved. So it's fairly easy to keep track of, even if I'm managing multiple jobs at the same time.

 

[BuilderMCR]

My jobs are mostly extension and conversions so I need to be aware all the time what's been done. We obviously can't put a roof on if the brickies have finished the walls. So it's pretty simple