Last week we introduced you to Piecework, or if you’ve been around a while, refreshed your memory.
This week we’re going to talk about how CLIP helps you pay with Piecework.
You’ve probably noticed if you’ve been using CLIP that everything in CLIP is based on man-hours.
You have a man-hour rating for each one of the jobs, so every job is based on the man hours it takes to accomplish.
Another way we come up with it is to decide what the company’s per hour needs to be for this year.
How We Do It
At CLIP Lawn Care in Maryland, we have raised our rate to $55 per man per hour. So it makes it simple to figure out what the man hour rating is on each one of the jobs we take.
Let’s say I’m charging the customer $110 per job. If I divide by the man hour rating I want to get, which is $55, that ends up as a 2.0-hour job.
Notice I didn’t take into account how many trees there were, whether there was a pool, or if we had to bag. I didn’t take any of that into account. All of that info is in my estimate.
I take whatever I’m charging the customer and divide by whatever man-hour rating I want to get. That equals the amount of time that I allow my guys to be on the property.
The Nuts And Bolts
Okay, say that it’s a 2.0 man-hour job and if there are two on the crew, they’re going to take one hour to get it done.
Well, not really.
It’s going to take them a little less than one hour because they have to make up for the travel time, the load time in the morning, and the travel time back in the afternoon.
So they’ll do that in less than an hour. They’ll do it probably in 40 or 45 minutes.
Also, it depends on the time of the year. In the springtime; you’ll find that things are going to go a lot slower.
They might not be able to do the job in 45 minutes. They might take 55 minutes to do the job, and they might grouse and complain a little bit saying they can’t make the times at that point.
Help them to remember August and what’s going to happen as the Summer winds down. Things are going to get blown away.
What’s Happening Right Now
Right now it’s November my company in Maryland right now is doing about $60 man-hours. They’re doing about 22 to 23 man-hours per day.
So that means each guy is getting paid more than double his rate.
If you refer back to the previous post, we talked about how everyone can have a different rate depending on whether they’re a foreman, the material, how long they’ve been with you, etc.
Let’s say I’m paying one of my folks $15 per credit and they’re cranking it out at about two and a half times that. You figure they’re making close to $40 per hour by getting these jobs done.
Once you’ve done this for one year or more, you’re going to find out that everybody’s going to get the feel of it.
CLIP Has A Ton Of Reports
The payroll efficiency report, the productivity report, as well as a bunch of labor and employee reports. Which means, if your employees are using the CLIP mobile app and recording their jobs out there in the field, all that information is getting fed immediately down to CLIP.
You will see everything getting done and can get the report at the end of every week, day, whatever frequency you want. That report will show you each employee and how many hours are credited to that employee. It does all the work for you at that point.
You simply take that data and multiply it by the employee’s rate, give it over to the payroll company and say, deduct the taxes and pay the guys.
CLIP can help you tremendously with piecework by producing the reports that will keep you on track.