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Thread: training a person with potential.

  1. #16
    Senior Member geoff's Avatar
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    Default Re: training a person with potential.

    I havent yet employed full time over all the years i have been going but after getting crook and laid of for awhile i am seriuosy thinking of putting someone on but i guess its not easy..What are the overhead % all up thats the time u add super ,work care holiday and sick pay etc whats the hourly rate u are up for .....
    The other thing is finding someone u can trust , then if they are really good they will go on there onw ( dont blame them ) or if they retired the get tired quickly or if they are young they may turn out like the post I" I work with an Idiot " post

  2. #17
    Senior Member geoff's Avatar
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    Default Re: training a person with potential.

    does anybody know what % to add to hourly rate to cover all the overheads for full time and causal employee...i know u can go to variuos govt web sites and work it out but there must be someone here that employs people through the books???????

  3. #18
    Senior Member glassngrass's Avatar
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    Default Re: training a person with potential.

    There is no reason your employee should be charged out at less that you! As a rule of thumb, I charge what is double the award casual rate.
    ie. I pay my casuals above award - $20/hr, and charge $40.
    The market won't bear much more than that here- which is why it is usually better to quote fixed price per job, NOT hourly rate!
    David
    Mr Sparkle Car Spa

  4. #19
    Senior Member geoff's Avatar
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    Default Re: training a person with potential.

    thanks mate but what is the actual overheads rate , what does he or she cost you???????

  5. #20
    Senior Member glassngrass's Avatar
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    Default Re: training a person with potential.

    That can vary greatly. How so? Well, consider travell time - the time you spend travelling between jobs - these are unbillable, but the employee is still earning.

    If, in an eight hour work day, together you serviced 12 clients (should be easy with two), and you 'lost' just five minutes between clients, thats 12.5% of the day. Not only that, but you only got 7 billable hours to pay him eight!

    If you trust your casual to work unsupervised, it is better to leave him at a larger job and go do smaller ones yourself.

    If your market can bear $40/hour, likely your employee will cost you 75% of that.

    Check some other comments on this topic here
    http://www.indmowing.com.au/forum/showthread.php?t=4355
    David
    Mr Sparkle Car Spa

  6. #21
    Senior Member glassngrass's Avatar
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    Default Re: training a person with potential.

    Additionally, at the start they won't likely be as productive as you.

    Consider those who qualify for centrlink assistance with a view to traineeship - say level 2 Cert Horticulture. When completed then level 3.
    David
    Mr Sparkle Car Spa

  7. #22
    Senior Member geoff's Avatar
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    Default Re: training a person with potential.

    mmm actually i am asking what is the overhead rate .eg if the award rate is 16 bucks per hr then what are the overhead costs on top ...super , workcare , etc holiday sick pay allowance etc???

  8. #23
    Senior Member glassngrass's Avatar
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    Default Re: training a person with potential.

    Occupation Personal and Other Services Industry Sector Q (AW793092) (AT793092) Gardener (General Employee Level 2)
    Oct 08 Nat Wage increase Base Rate $14.31 Casual Rate $17.89

    I wouldn't pay a casual less than $20/hour

    With casuals, there is no paid holiday, long service, or sick leave entitlements - it is built in to the 25% loading on top of base rate.

    Workcover premium depends on no. employees, record of safety and other things. http://www.worksafe.vic.gov.au/wps/w...ting+Premiums/

    Ear protection, hi-vis vest, steel capped boots, sun hat, sunscreen, eye protection. Protect your employee as tho it were your 12 year old son helping you!
    David
    Mr Sparkle Car Spa

  9. #24
    MEMBER Fred's mowing's Avatar
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    Wink Re: training a person with potential.

    Quote Originally Posted by glassngrass
    That can vary greatly. How so? Well, consider travell time - the time you spend travelling between jobs - these are unbillable, but the employee is still earning.

    If, in an eight hour work day, together you serviced 12 clients (should be easy with two), and you 'lost' just five minutes between clients, thats 12.5% of the day. Not only that, but you only got 7 billable hours to pay him eight!

    If you trust your casual to work unsupervised, it is better to leave him at a larger job and go do smaller ones yourself.

    If your market can bear $40/hour, likely your employee will cost you 75% of that.

    Check some other comments on this topic here
    http://www.indmowing.com.au/forum/showthread.php?t=4355
    Agree 100%.
    If your only making 25% of what your charging him out at, over a 40 hr week you`ve still gained $400
    Cheers Dean.

  10. #25
    Translawner administrator's Avatar
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    Default Re: training a person with potential.

    In some states casuals are entitled to long service so be very careful,

    Make sure you check the law as best as you can or get advice .

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  11. #26
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    Default Re: training a person with potential.

    but remember there probably not as intelligent or as reliable
    also you will still have to pay superannuation 9% + whatever the workcover premium is for your state
    Anything Ian says may or may not be garbage, it may also be his own opinion or it may not be his opinion at all, it may just be something he felt like stating anyone following his advice does so at their own risk and may be doing something Ian would actually advise against.
    And if you don't like what Ian has to say use the ignore function if you don't know how ask i will gladly tell you

  12. #27
    Senior Member geoff's Avatar
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    Default Re: training a person with potential.

    so how come people employ staff but dont know the actual costs to them..reading some of the laws in vic theres 9 % super thers workcover levy , theres an alloawnce for sick pay and holiday pay ( full timers ) so anyone know the actuals????

  13. #28
    Senior Member glassngrass's Avatar
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    Default Re: training a person with potential.

    How long will it take to dig me a hole?
    Well.. it depends on how big a hole, how deep, the hardness of soil/clay, the weather - you get the picture!

    Similarly, there are several reasons many don't know the exact cost of employing:
    1. many don't employ because they can't find or retain competant staff
    2. payroll, etc.. can be a nightmare to keep pace with - too hard!
    3. so many variable AND fixed costs.

    If you spent an hour or more each week per employee recording payroll information and calculating pays/PAYG and depositing to each employees bank - that's also a cost.

    Remitting PAYG to ATO, costs time too.

    As does calculating whether employee qualifies for superannuation guarantee or not, then remitting monies each quarter to their chosen super fund.

    Not to mention time ensuring your pay rates are current.

    Then there are other costs involved - documenting Safe Working Procedures, staff training and welfare, paid tea breaks.

    No wonder many avoid employing others or use subbies instead.
    Others take a gamble their short cuts won't come back to bite them.

    Increasingly, businesses are seeing advantages in outsourcing their payroll to dedicated professionals in that field.

    Rather than 'hope for the best' by doing it yourself, or alternately, holding your business' growth back by not hiring, consider outsourcing all the worries of payroll.
    David
    Mr Sparkle Car Spa

  14. #29
    Senior Member geoff's Avatar
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    Default Re: training a person with potential.

    shes right David i will employ a book keeper that will solve my time problems in calculating the overhead charges

  15. #30
    Senior Member glassngrass's Avatar
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    Default Cost of Labour

    The attached spreadsheet may be of assistance in calculating cost of employees.
    Attached Files Attached Files
    David
    Mr Sparkle Car Spa

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