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Salary for wages?

Discussion in 'Business Fundamentals' started by drivewaydoctor, Jan 20, 2009.

  1. I'm going to be needing a guy next year to run a truck on commercial lots. I'm considering staying away from hourly and going with salary. I was thinking $1500 per month salary to operate my truck and he has to be available for every storm with a pay penalty for any storms missed.

    What do you think of the salary option and what do you think of $1500 per month? Fair? Too low?
  2. augerandblade

    augerandblade PlowSite.com Addict
    Messages: 1,054

    You would do well to know his work history, I tried that and when the going got to tough he bailed out on me He was just a fair weather friend
  3. Kunker

    Kunker Member
    Messages: 96

    Salary to me is for a fixed hour job where I work set days and set hours. For such a flexible and unpredictable job as plowing, I personally would much rather have an hourly wage, especially for a seasonal job with a pay penalty for missing work. That's my take on it.
  4. QuadPlower

    QuadPlower PlowSite.com Addict
    Messages: 1,056

    Salary is tough to do in our line of work. I have some friends that are those whats ya call its. Engineers. They get salary and then have to work 60 -70 hr a week for no additional money.

    I'm thinking about salary for one of my guys for next year. I'm going to take his hourly rate for mowing and an hourly rate for snow plowing. Total it and divide by 12. That will give me the monthly salary.

    To answer your question. Can your guy survive on $1,500 a month? Is it enough to keep him around all year? That is up to him.

    The problem we face is that during the summer we are working them all the time and they only get $1500. During the winter we are only working them when it snows and they get $1500. It would be tough for me to pay someone in say November & April when they work very little.

    $10 per hour x 40 hr/wk = $400 x 52 weeks a year = $20,800 per year.

    2080 hours per year X hourly rate = Salary per year.

    Acutal hours will vary. Like during November (after mowing, before snow) or April (after snow,before mowing) Then during the winter they will be less.

    You can figure it out and that will make the actual $/hr rate higher.
  5. cretebaby

    cretebaby PlowSite Veteran
    Messages: 4,162

    You still have to pay overtime to a salaried employee unless they are a manager
  6. JDiepstra

    JDiepstra PlowSite.com Addict
    Messages: 1,780

    I know of a local company who pays his guys salary and it seems to work out fine. As stated above, check with labor laws on working overtime. If you do the pay cut with missed hours, I would strongly consider an end of year bonus for perfect attendance. Have you figured out how many hours, on average, you think he will be working per month?
  7. clark lawn

    clark lawn PlowSite.com Addict
    from NE ohio
    Messages: 1,233

    the bad part of that is when there is no snow for a week or 2 they dont make any money now they are out looking for a new job, then the next snow nes not there.
  8. JD Dave

    JD Dave PlowSite Fanatic
    Messages: 11,032

    All our guys get standby for 20 weeks, (250-$300/week) and then they get an hourly wage when they work. Most of my guys all have other fulltime jobs but have made arrangements that when it snows they are working for me. You miss the call you lose 2 weeks standby, miss the second call your looking for another snow plow job. I want operators not drivers and I think the extra expense is worth not having all the manpower headaches.
  9. augerandblade

    augerandblade PlowSite.com Addict
    Messages: 1,054

    a former employee of mine moved on to highway work. His employer pays him 15 hours of reg pay per week, so if he is called in and work below the fifteen hour threshold he keeps his 15 hour pay. If he works over the 15 hours his pay reflects actual hours. That is something Im thinking of doing, however the snow has been steadily coming down at regular intervals, so far everybodys happy. Some of my guys are handy with a wrench, so sometimes shop work, get em in touch and givesw a regular check. Best is to get guys with seasonal work and your provided pay check is a nice supplement to their pogie pay.
  10. Longae29

    Longae29 PlowSite.com Addict
    Messages: 1,954

    I'm a salaried employee. I make my salary every week, I make commission for snow plowing, landscape maintenance, and landscape installs that I sell. In the winter time during snowplowing I also make an hourly wage in addition to my salary for every hour worked over 10 in a week. In the summer I normally work about 50-60 hours a week, and in the winter the more i work to earn sales the more i'll make in commissions, so its in my favor to work a fair amount of hours. I've been with the same company for 9 years, first 6 as an hourly landscaper/snowplower, and the last 3 in my current position, the owner of the company i work for and myself are both satisfied with the way its worked out, seems fair to both of us, (maybe slightly more in my favor, but we'll keep that quiet)
  11. Superior L & L

    Superior L & L PlowSite Veteran
    from MI
    Messages: 3,035

    "there stand by" i know they get that every week if they work or not but say the guy makes $20 per hour and his stand by is $300 does he have to work 15 hour that week before he starts to drawn a pay check?
  12. JD Dave

    JD Dave PlowSite Fanatic
    Messages: 11,032

    No hours are on top of the standby.
  13. Thanks for the feedback guys. This standby pay with hourly on top sounds risky doesnt it? I mean what if the guy turns 40 hours in the week at $20 per hour then your paying out $1100 for the week alone.

    I kind of like the idea someone mentioned about having an hourly guarantee base and then those hours for the week come are worked if it storms. At least I think thats how I read it.
  14. JohnnyRoyale

    JohnnyRoyale 2000 Club Member
    Messages: 2,935

    My main guys (year round) are on salary (40 hours a week) rain or shine through the winter-from mid December to mid April. We've tried everything in the past and found this is the fairest for everyone.
  15. JD Dave

    JD Dave PlowSite Fanatic
    Messages: 11,032

    It works for me. I've been doing it for 15 + years this way and I have the jobs to support it. Some of our guys have been with us for over 10 years.
  16. augerandblade

    augerandblade PlowSite.com Addict
    Messages: 1,054

    Thats what I thought ....once you get the lots and the people in place with a good pay package resulting in A 1 service it just keeps on rolling.:gunsfiring:

    RODHALL Senior Member
    Messages: 374

    i don't see $1500 a month keeping employees long.
    You need to find someone who will work both your driveway sealing and plowing. and then set down and come up with $$$$ see if company truck would sweetin the deal? see if health insurance?

    i know the guy i had working for me for while he was happy to have a company truck to drive, and took less $$$, he was always making sure it was clean and taken care of.

    Good employees are hard to find, when you find one make sure you do your best to hold onto them.
  18. Superior L & L

    Superior L & L PlowSite Veteran
    from MI
    Messages: 3,035

    Thats a tough sell for me at first but after thing about it it does guarantee they will show up. Also if you have enough monthly accounts there pay is guaranteed by the accounts they work on and the account gets great service
    because the people that work there accounts are ready at a moments notice
  19. Italiano67

    Italiano67 Senior Member
    Messages: 638

    It all boils down to making good money on accounts and not doing things on the cheap. If you are making good money you can pay well and also have the right equipment. It always amazes me how the low end pricing guys put themselves in a corner and have to cut corners on wages and run old or suspect equipment. I am not directing this at anyone here it is just an observation in general.
  20. jgoetter1

    jgoetter1 Senior Member
    Messages: 276

    Salary works best if you're able to keep your employee busy year round. If not, it doesn't make much sense.