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My employer is attempting to evaluate the companies operations to streamline and concentrate on what we do best. We have 5 employees, 2 foreman, 2 carps & 1 PT laborer plus the boss who handles the office ‘stuff’.
We do middle to upper end, remodeling work, ranging from small repair jobs to kitchens, baths, and additions to whole house remodels. Last year contract sales were 600,000$.
One of the things he is considering changing is the current profit sharing, which gives us a small % of profit from the jobs we “run”.
I would like any input that you have about whatever system works for you.
thanks in advance for your advice!
Mr. T.
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Tony,
2 formans and 2 carps?
We currently have 18 carpenters at present and 2 formans.
What the heck do the formans do all day? Watch the other guy work?
Sounds like a waste of profits to me. The owner doesn't need formans until he has at least 10 carpenters in the field.
Are these formans really "salesmen"?
Ed.
*Tony-We are on the other end of that problem. How do we reward our employees when they do good work? We pay well enough that we have no problem retaining employees and we give them interesting work and respect. We give out a bonus at the end of the year based on the employee's hours and our judgement of how the company did financially. We probably could formalize this somehow but it seems a pointless exercise.This system works well in that it is understandable by everyone, it is easy to figure out and it puts everyone on an even footing. Its problems are that it does not explicitly reward good work by any individual based on any measurable performance. Since we are not mainly concerned with speed, how do we objectively measure quality, efficiency, cooperative attitude and the many other attributes of a fine employeed? And how do we reward them?In the past we have given employees an opportunity to buy into our partnership and this worked well, but it is not necessarily the route we can take in the future. The partners have many additional responsibilities which not every employee will want or be capable of assuming. The existing partners also may not want to change the way the company runs now. All this leaves the problem of rewarding valued employees in a limbo.
*Ok Ed were even I'll ad admit I had that coming from you.Maybe I should have said working foreman or lead carpenter. My daily duties include in no specific order; Demolitioncleanupscheduling subsmaterials takeoff & orderingcustomer relationsform workframing drywall hanging and finish insulation........all the way thru to finish carpentry and punch listBasically I do whatever it takes to finish the job I have 18 years of experience and a construction engineering degree. I work hard to be the best I can be at my chosen profession. I have put a great deal of time and effort in getting to where I am now.I make my boss a lot of money. I would just like to see a bigger piece of the pie thats all.I love my work I want to love my pay check too!I'm done..Mr. T.
*Tony,Sounds to me like you're ready to make the jump.Start your own business. You already run a successful one although someone else owns it.Looks like the only thing in your job you're not doing is rounding up the work.I've got a feeling you'd be good at that too.Good luck,Ed.
*ShellingI try to treat my employees the same way you do, and I have the same problem. I've decided it's not a problem. Here's what I do. I tell my guys, the only limits are the one's you set on yourselves. Go out and generate work, or show me how to do it better and we'll both move ahead. Beyond what you're already doing what else can you do? That last question was for you and my guys.Terry
*Tony, if you love your work and want a bigger paycheck, ask for it. If you are making 50k and think you are worth 75k, say so.Ed is telling you to leave the profession you love and start a new carreer, that of being a businessman. If that's what you desire, go to business school at night and learn how to be a businessman, then jump.I love carpentry but hate the carpentry business. I've never liked anything about it.blue
*blue,I was under the impression that you own your own business. Am I wrong?Ed.
*ED, I'm the President, vice president, secretary and treasurer of a powerful Michigan corporation. I own a job, lock stock and barrel. Yes I own my business. I'll sell it to you for a plugged nickel. blue
*blue... you are really good at what you do.. frame houses for others..but you couldn't get the price you need to be rewarded for your efforts...sounds like a classic case of the wrong niche.... i built my last new home in 91...finally helped me see the light that new houses are just commodities.. an commodities are only sold by price...low price wins...when i first started out i worked for a guy who did profit sharing.. there were never any profits...so , he would talk to us about making it up in volume.... hah, hah, hah...if you're losing a nickel a widget at 50 widgets... how much profit do you make at the same price at 500 widgets ?.. i know you didn't like the remodeling end...but i'll bet you made a lot better rate than in the framing end ..hey.. keep your chin up.. and have fun in your new directions...
*Mike there aint no way I'm going to frame a house for another carpenter crew. Those guys are nuts!And I hate remodelling because I hate educating every customer, then their uncle, then their neighbor, then their uncle's neighbor.....I guess I'm just ready to move on in life. I can still do alright framing if my heart is in it. It isn't. I'm finishing my last contract right now and don't even care to go out and hustle another....I'm looking real hard for a fix and flip "ugly" house however...blue
*blue,If you don't like what you're doing, then get out.Sounds to me like Tony is doing everything in his job description that a GC does.He can do it for the other guy for wages, or do it under his own name for the whole pie....not a piece.I don't see that as a career change. It's his call.Ed.
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My employer is attempting to evaluate the companies operations to streamline and concentrate on what we do best. We have 5 employees, 2 foreman, 2 carps & 1 PT laborer plus the boss who handles the office 'stuff'.
We do middle to upper end, remodeling work, ranging from small repair jobs to kitchens, baths, and additions to whole house remodels. Last year contract sales were 600,000$.
One of the things he is considering changing is the current profit sharing, which gives us a small % of profit from the jobs we "run".
I would like any input that you have about whatever system works for you.
thanks in advance for your advice!
Mr. T.