Growing Pains

JPhelps

Just wondering what everyone else has experienced. I'm currently a one man show, and I now need help. I anticipate some growing pains. Of course theres the payroll and WC, which i'm being told is around 25%...wow. not sure if shopping around will help that. But also being able to adjust to how productive they are, so that I can bid accordingly. I'm thinking that adding one more person who is semi experienced will double my production, but that production will increase more slowly with each additional employee I add. I should say that the only help I want is skilled labor and am not looking to hire anyone for administrative stuff. So I guess my real question is do you guys figure a flat hourly bill rate(so that when you figure how long a job will or should take you have a labor cost for a job) when your guys are working or do you have different rates for guys with different skill levels. Geez Its sorta late and I'm tired...sorry if this is all jumbled together. thanks in advance for guidance.

Mike Finley

If it's just you now, adding 1 skilled employee will not double your production. In theory you will need 2 skilled employees to do that. In reality 2 will get you about 75-85% increase in production.

1 more of you would give you about a 75%-85% increase in production in most cases, but you won't be able to hire anyone like yourself.

RobertCDF

It can all depend upon how skilled they are and what your doing. I brought on a very good carpenter to help me build decks. I would say it about doubled my productivity but thats because with help I can build a lot faster. Some trades may not quite work out the same way.

To make it easy on me I use a payroll service company locally that handles all taxes, paychecks, and WC. All I do is call and tell the hours. They give me checks the next day. Total time spent on ALL things related to payroll and WC.... less than 5 mins every 2 weeks.

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Robert Shaw
Colorado Springs Custom Decks
Colorado Custom Decks
Custom Composite Decks

mdshunk

Two electricians on the same job is about 75% more productive than one. Three electricians on the same job is about 75% more productive than one. Go figure.

Flacan

Regarding the production question: it depends on many factors, some of which are:

1) how much time do you spend in production, and how much time will the skilled laborer spend. You probably only spend about 75%+/- of your time doing production work. If the skilled laborer spends 95% of his time in production (assuming he's as skilled as you), then yes, you will be able to double your production. Remember, now you'll be spending even more of your time selling, buying materials, etc.

2) the nature of your work. Will you be tripping over each other (less efficient), or will you be able to produce more efficiently because now there is less time spent in transit (transit can mean more than driving a car).

3) heck, I'm tired. I'm going to bed - brain is quitting

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Raimo Kumpulainen
Those who don't remember the past, are condemned to repeat it.

JPhelps

ok...we'll i'm a trim carpenter, just to clarify. i was thinking somebody extra whos skilled could double my production based on what it actually was.....But any substantial increase will work. How tough was it on you all on your first hire until things smoothed out and you started seeing real production.(this is assuming too that you hired a good employee).? I could be way off but I'm thinking once I hire someone at first I'll second guess myself and sort of regret it because the benefits of it won't be readily apparrent. But at some point it will smooth out, meaning his own production will take care of his cost and pay me a little. Let me know if I'm off base here.

Forry

My experience has been different from these guys I guess. I've found a sort of synergy when working with a good helper. Having someone around to load/unload the truck, make cuts, hold the other end of my tape for a long measurement, keep the work area clean, etc. I've found to be invaluable. easily more that double the work getting done. It's in how you deploy you're helper. Also, a helper is billed at an appropriate rate, but as productivity increases, rates increase, or if work is being done for a set price, profit goes up. Gotta leave room for mistakes, ie buy a couple extra pieces of trim for botched cuts, so it's not a big deal, etc.
Comp. runs 10-20% of payroll for my crew depending on what we're doing, overhead is more, so markup on employees is around 250% Pretty much covers everything.

Tmrrptr

Comp and associated paperwork will eat your lunch w 1 employee and take you out of commission, maybe 10% of the time.

Try a temp service for a day laborer before hiring someone yourself.

Or, find a partner.
r