Hiring/Managing Employees - Payment structures?

BaDm0theR

BaDm0theR

~Live with Passion!~
Greetings my DC friends,

I am in the midst of re-organizing many aspects in my business to promote it effectively, run it more efficiently and most importantly, reduce the amount of physical energy that i have to exert via means of hiring an employee/employees...and increase the volume of work i do at the same time.

Now, i know there is a wealth of knowledgeable/experienced detailers who already have experience with hiring, managing and paying hired help...so i call upon all of you for help. If you do not feel its appropriate to share certain adivece and/or information by replying to this thread, please....i encourage you to PM me or send me an email and we'll conduct our talks through there.



As many of you may or may not know, i have been successfully operating my high-end mobile detailing business for almost 18 months now....and up until now i have been a one man show, similar to our great pal Nick (we're in the same boat brotha!).

Anyhow, there is a limit to how much one person can physically achieve in one day, especially when we're talking about thorough, intensely laborious and meticulous detail work.

If i can nab just one motivated, dedicated and passionate employee im confident that i can cut my work time in half (not to mention the strenuous effort that goes into detailing in the florida sun)...and thereby increasing my overall efficiency. In addition, i can do a larger volume of vehicles in one day too...increasing revenue as well.


SO here are my qustions/concerns to all those who have some expertise in this area:

As professional/high quality detailers, who do you target in regards to quality employees & helpers?

How do you structure your salary/payment plans with them? DO you pay by the hour, or by car....if hourly then how much? Do any of you have some kind of sliding scale commision plan that encourages workers to work harder, better and more thoroughly?


What are your experiences (both negative and positive) in hiring younger highschool aged kids? College kids?



Im just looking for any type of advice, suggestions or help from any/all of you in regards to this subject.


Share your thoughts, again, if your uncomfortable in revealing certian information publicly....PM or email me, all of our discussions will be kept confidential.


Thanks again,

Mike T.






~Mike's Car Wash & Detail~

Mobility * Convenience * Outstanding Results
 
hey BM, not sure if you live with/around family?

I myself, have several nephews here with me, all in high school. They have workers ed. so get out at 12pm, they then meet me on site (they drive).

Pros:
1. more volume
2. can pay them min. wage
3. can kick down extra if you like
4. WILL do a good job (if not uncle going to get mad)
5. can leave them to start another job; they meet you after the finish last job.

Cons:
1. homework
2. they need to eat more often (breaks)
3. they will do it on occassion (girlfriends, school dances, friends)

in other words, the job at hand WILL get done, they just need work to get by with the girlfriends and weekend cash.

overall,i think all highschool kids will have all these same pros cons. Look at having 2-3 onthe side for what ever days you want them to work.

#1 works with you M - W - F
#2 works with you T - Th
#3 works with you S - Su


or you'll figure out something easier to work for you.

here is my help taking a break now :)

noel.jpg
 
Hey Badmother - You can usually find a highschooler who wants to learn - or maybe even a college kid back home for the summer - I worked for an entrepeneur (sp?) who paid me a flat hourly rate and then would give me a percentage of any new business I brought in - that's always incentive.
 
BaDm0theR,

You've asked a tough question. To me, the con with hiring is that hiring one person may not increase your capacity 100% or decrease your load 50%. You as the owner, will always be more dedicated because it is your reputation that is on the line. Your employee may not feel the same way.

Instead of hiring another person to do detailing, could you hire someone to do your administrative stuff, like bookkeeping, ordering supplies, booking appointments, etc. on a part-time basis. This may clear you up to concentrate on detailing cars which would increase the number of cars you can do. You can also control quality as only you will be doing the detailing work which will protect your reputation. Just a thought.
 
For me, it is a flip of the coin and a toss of the dice as to whether it is better to have an experienced person and pay them a little bit more, or have a greenhorn and train them to do the job as I want it done; for both have their pro's and con's. The experienced person can drastically increase overall output, and doesn't need to be baby-sat, where the newbie can sometimes slow down the processes. If the inexperienced person is hired, patience is a big factor. Either way, when you do start the hiring process, effective leadership, training, and motivation are the key... do not only train on procedures but also spend the time to educate upon your philosophies. It's also not a bad idea to have a non-disclosure / non-compete agreement written into a hiring contract. Email me if you wish for me to elaborate.
 
I recently hired a college kid for parttime work at the start of this season. So far it has been working out great.
He was/is inexperienced, and I prefer it that way (no bad habits). He is kinda' like my assistant (windows, tires, vacuuming, handwashing, etc... haven't let him touch the PC yet... ;) )
I pay him as a contract laborer, and provide him with a 1099 form. He's responsible for his own taxes. However; in order to keep him, I pay him more than minimum wage ($8/hour to start). Even at this rate, for an 8 hour day my 'payroll' is only $64 - not bad when I'm averaging $150 to $200 for high end details.

Having him onboard has been a blessing so far. Cuts my time down considerably - allows me to schedule more work for the day... I'm down to 4 hours for a full detail (average) - used to take me 6-8 hours on my own...

Onthespot
On The Spot Mobile Detailing (Western NC)
 
Re: non-compete [fine print]

detaled by hans said:
hey dr. throw me a # of how many kids sign these contracts ??????
Click to expand...

I know of 3 companies right off the bat which have these in their hiring packets... I know I've had to sign more than one, the length of which have now long become expired.

check you PM box for an added note ;)
 
I have a question about setting up an employee as a contractor. I have two questions:
1- Doesn't the person listed as a contractor need a business license inorder for it to be legitimate?
2- Or does the law regarding this business set-up change depending upon the state in which you operate?
 
ezragipson said:
I have a question about setting up an employee as a contractor. I have two questions:
1- Doesn't the person listed as a contractor need a business license inorder for it to be legitimate?
2- Or does the law regarding this business set-up change depending upon the state in which you operate?
Click to expand...


I believe that it varies from state to state. Here in NC the 'contractor' only needs to have a SS# and be a US citizen OR have a Green Card which gives them permission to work in the US.
I believe that it was that way in Ohio as well... Years ago (many years ago) - I did contract labor for a landscape company, and didn't need to have a business license...

Onthespot
 
onthespot,

What do you need to do for a detailing job here in NC? Fees? Licenses? I'm thinking (big ideas, not very practical) of doing mobile around my neighborhood for some easy jobs. Would I be flagged if I started a small job without any government licenses?

Basically what did u hafta do to detail in NC :)
 
On the busy streets of Manhattan, all ya need is a bottle of something and some wadded up newspaper... :lmfao

Look this guy has a bucket...
 
ezragipson,

To partly answer your question, you can't really set someone up as an independent contractor (IC). That IC would have to set himself up as an IC and hold himself out to be an IC. That person would already need to have the skills required to do the job, and it would help if he had his own tools of the trade.

The distinction between employee and IC may seem trivial, but the distinction is very important. Minimum wage, taxes, employee benefits, etc. all hinge on how your new hire is classified. Also, I do not believe that your new hire can agree to be an IC, when in substance he is an employee.

Didn't mean to go on and on, but I think it's worth doing some research or consulting with someone in your area that can help you set this up correctly.
 
I don't know about your states, but in PA as soon as you hire an employee, then you must start to carry workmen's compensation insurance. Also be aware that in addition to deducting local and federal taxes that social security will need to be deducted as well as the employer must pay a certain percentage also. These are all things to consider when adding that first employee. I do not believe in paying "under the table" because that is just cheating all the honest tax payers, but you need to be aware of the costs so you can charge accordingly.
 
Woob said:
onthespot,

What do you need to do for a detailing job here in NC? Fees? Licenses? I'm thinking (big ideas, not very practical) of doing mobile around my neighborhood for some easy jobs. Would I be flagged if I started a small job without any government licenses?

Basically what did u hafta do to detail in NC :)
Click to expand...


To answer your questions;
You need a business license. Specifically, a "DBA" (Doing Business As) permit. Check with your local chamber of commerce to find out exactly what you need to do in this regard.
Additionally, I carry a garage keeper's liability of $500,000 (per accident/per injury) which covers all vehicles that I work on as well as any personal injury accidents should they occur...
Other things that I do that make me more legit? - -
I carry MSDS sheets onboard for all the chemicals that I use (with the exception of certain waxes that I have been unable to obtain MSDS sheets for)...
I carry a copy of the EPA standards /Clean Water Act with me - and abide by it (the best that I can anyhow)...
I have a fire extinguisher onboard and a first aid kit (I really need to purchase an eyewash kit though)...

Not sure if you would be 'flagged' or not... Probably not, if you are a small operation... Most people who start up detail operations in my particular area don't have the permits or insurance that I carry let alone the other things that I mentioned........ Then again, most of them try to undercut me with $50 'full detail' 'hack jobs' - and for some reason don't seem to last very long in this business... ;)

Best of luck to you, and feel free to PM me with any further questions you may have...

Regards,
Onthespot
On The Spot Mobile Detailing (Western NC)
:onthespot
 
Additionally, I carry a garage keeper's liability of $500,000 (per accident/per injury) which covers all vehicles that I work on as well as any personal injury accidents should they occur...
Click to expand...

Just curious, how much does that kinda insurance run you per month, or per whatever period you pay in? I recently went "legal", got a biz registration and all that jaunk. I am wanting to get insurance as soon as I start to roll in some work.

:beer
 
onthespot,

Good plan. It's nice to see businesses take those kinds of precautions. They will help ensure that you'll be in business for a long time. It should also give your customers some comfort knowing that in the event of a problem, you're already prepared to deal with them. It may cost your customers a little more for your sevices to cover your extra expenses, but I bet they are willing to pay that extra amount for a little peace of mind.
 
Im getting some helpful input bubbling along in here, outstanding! :)

Again, much thanks to those are taking their time to contribute to this thread. Im confident that with enough responses and input other people who will have similar questions in the future can look upon this thread as an excellent reference.

FYI: I work part-time detailing, im a full-time student in college at the moment as well. So although this is my primary means of income, this is not a 'daily job' so to speak.

Groebuck: Yes, i think you presented very insightful advice. Im trying to design the payment structure for this would-be employee so there is incentive to do outstanding (rather than just 'good'), and also to bring in new clientelle (for which he/she will be more heavily compensated for). Positive management and keen motivational techniques on my part will play heavily into the success/intensity of how well my employee will work...but i do feel that when a person is obviously going up and above what is expected they should be recognized and rewarded for it.


Ben54: As i mentioned above, because of the fact that my work is part-time (mainly trying to target high-end clients as well), i dont feel its necessary to hire someone solely for administrative/marketing work. This side of the business is something i take very serious (especially because im setting a certain reputation for myself) and i'd much rather prefer the social, administrative and marketing aspect to be solely up to me. This logic doesnt apply to the 'physical' aspect of the detailing work...hence im searching for that god-send employee to give me their time and effort. :)
As far as quality control, i will be ensuring that by going over all the work (like small detailing tasks on-site) myself and correcting problem areas as needed.


Dr_Detail: Your input hit the nail on the head. Very well said. I strongly beleive that building strong rapport (both in your clients AND your employees) is the absolute crucial aspect for ANY successful person/business. I will do my best to POSITIVELY motivate and educate this person so that he/she can experience the kind of care, appreciation and dedication that i do toward my work. Patience will Inevitably come with the territory of management.

Keep the ideas & advice flowin :beer


Thanks again to the contributors, you all have delivered yet again above my expectations :bigups
 
ezragipson said:
I have a question about setting up an employee as a contractor. I have two questions:
1- Doesn't the person listed as a contractor need a business license inorder for it to be legitimate?
2- Or does the law regarding this business set-up change depending upon the state in which you operate?
Click to expand...

From past experience with a temporary worker and a state labor hearing... if you set their hours, or transport them to a job-site, or supply them with the necessary materials and/or equipment, or instruct how the job needs to be completed, or provide training to perform the tasks, or specify/provide them with a uniform, they are, according to the Federal Labor Laws/IRS Tax Codes, an employee and not an independent contractor. Of course I don't think they will be chasing down a small time operation, and the first $600 can be paid as services rendered without a 10-99 or a W-4, however an ounce of prevention can save thousands in legal fees and fines. It might be a good idea to just contact your local SBA or a CPA for more insight.

If you go the independent contractor route, you might also consider paying them either by piece work, on a percentage basis or as a day laborer.
 
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