Also posted on ICS Board. Rick, I particularly wanted to get your input.

I know this has been hashed out several times, but I'd thought I'd seek input. I'm gonna hire my first tech in the next couple of weeks. I'm not gonna pay 'em a high hourly wage until they are trained and I've sent 'em to at least carpet or water school. I'm thinking maybe their hourly wage plus 12% commission on new phone in business and 15% commission for add ons; 18% for new business they bring in by working their friends, relatives, etc. (ya'll know how it works when you're just starting out) plus the same 15% for add ons. Existing clients would add no commission but I'd honor the 15% for add ons.
Do you think this is a good plan with some incentive to it or does it s__k?
Thanks for your help.

Kevin can you find a emp, i have a hard enough time just finding someone to do home cleaning, my sup makes 25% if two people go out and 18% if three people go out, haven't had 3 go out in a while the second cleaner gets 15%. if three go out the two get 12%, i know its not a lot but for the hours they work its usually over 10.00 a hour

Ades,
For my night janitorial services I am the employee, just as I am for the carpet cleaning, restoration, remediation ends. My wife helps me, but we have 2 kids at home and I have 2 from a previous marriage. When the 2 older ones are there, we work together because the older ones are very responsible and look after the younger ones well. As far as employees in the janitorial end, I just got tired of messing with 'em. Within a week after they start, I start getting complaints, whereas I've had 2 on me in the last year! I used to have 35 night accounts. Now I have only 9. I weeded 'em out as I have put more time into growing our carpet cleaning and restoration business because the profit is better. Will I be able to find better employees in the carpet/restoration end? I don't know. I just feel if I can start 'em out a little higher, teach them how to use their natural abilities to make a sale and pay 'em a percentage of the job while they learn the ropes, maybe there will be more "spunk".

That sounds like a lot of math to keep track of Kevin. How would you track all of that with ongoing accounts? If you have a good system for tracking all that, I suppose it would be an OK arrangement.

I have always payed my techs by the sq ft. And we take care of their payroll.
They get 1.5-2 cents per sq ft for commercial carpet cleaning (with a $40 minimum for small jobs). That equates to at least $30-$40 per hour. This arrangement doesn't factor their driving time, just time spent on the job. If they have unusual driving distance or some other extenuating circumstances, we'll comp them for that.

Do I need to pay $30-$40 per hour for part time workers? Probably not. But the Golden Rule applies. Would I want to leave my wife and go out to work in the evening for less? NO! I have always felt that if I take GOOD care of my people, I can EXPECT that they will take good care of me. And for the most part it has worked out that way. I have been able to retain good people that will help me make a success of my business. And they're eager to help us acquire new accounts, because that's more profitable work for them. I find that when I pay my help well they want to help me become more successful.

This is just what we've found works for us. There are many ways to approach this. For a residential business I would think that a different pay program might be advantageous. But for commercial, this pay arrangement has worked rally well. Treat 'em well; your employees are your greatest business asset. Ya get what you pay for.





Rick Gelinas
encapman

For janitorial we pay by the job/ building

which come out to $15 to $20 per hour once they are up to speed or about 40%
of the nightly billing.

For commercial carpets I have changed to Ricks method so far so good.

For residential work it would depend on the tech, but then there goes any systemized aproach.

We pay our Tec's by the hour based on what they know. Pay is from $10.00 Part Time starting to $18.00 hr for every hour they are at work including drive time. Plus we provide Health Insurance, Dental Insurance, Sick Pay, Vacation Pay, Holiday Pay, Free Soda, Group Meals at the shop Quarterly.

We rein it all in by having a montly Gross Profit Report done by Account or Job. If the work is done within the Hours & Labor Percentage planned we pay additional Bonus. We keep track of hours assigned by job every day. Everyone knows the score all the time.

"Commercial Only"

Rick,
I am trying to understand your formula. I am seeing that if a tech cleans 2,500 square feet he makew, based on 2,500 sq. ft., $50.00. Is that correct? That would make you, charging a minimum of .09 per sq. ft. making $225 less the $50? Is that right. Please help me understand this. Am I correct?

Yes that is correct.

If the job is 2500 sq ft at .09 per sq ft the price would be $225. And a small 2500 sq ft job should take one tech between 1-2 hours.

My highest paid tech gets paid .02 per sq ft - and all the other techs get paid .015 per sq ft.

At .02 my top tech will get $50 for this 2500 sq ft job.

My techs that work for .015 would come out at $37.50 for this 2500 sq ft job --- but as I said above, our minimum pay rate is $40 for a job --- so he will get paid $40 for the job.

Now consider the numbers... My techs are getting paid PHENOMENAL money for easy part time work. And after they have been paid and we factor in all the expenses - that $225 job has netted me at least $150. The employees is happy, the customer is happy, and I am happy.





Rick Gelinas
encapman

Can I come down and work for you?

Sure Joe




Rick Gelinas
encapman