How much compensation for a employee with zero experience/competency?

[Zac]

From an installers perspective...I started at my first sign shop as a part-time 1099 employee making $9.00 in AR where the min wage at the time was 7.25. Owner eventually went out of business and I got a job the next day at a sign manufacturer that also did a bit of retail for $10.00 an hour sweeping floor/trash/learning. After 2 years I was running the entire shop by myself when it was originally 4 guys, and making 15.00 hour salary and managing 2 other people.

After they screwed me over with salary promises, I'm now at a competitor's shop as an installer making $15.00 non-salary (only been there 2 weeks but I'm experienced) just doing vinyl/banners/wraps and it's cake work, but our owner pays everyone really well (about 20 employees, but only 2 of us are considered the sign shop guys), with no part-time people, pays full healthcare and has a company lunch every month. My old bosses were shady but this guy bought a printing company 16 years ago and had people move with him to the new location and people staying from the old business who are still there. That says a lot.

Lucky for me the old installer was pretty incompetent and lazy and the sign shop side is only 3 years old, so I'm expected to make an impression as I'm the most experienced guy. Having a boss like this gives me the motivation to make my job better by making his business better, and not questioning whether I'm getting screwed over or can make more money somewhere else by job searching. I can tell I'd like working for a lot of you as it seems to be mostly owners here (which I hope to be one day) but having a bad boss who doesn't appreciate you is not worth any amount of money. Even a good situation can turn into a sour one as business is constantly evolving and you never know what's personal and what isn't. It's communication that fixes all that.

 

[HulkSmash]

I've started new shop employees at $7.50/hr. If I could go lower, I would, because I know I'll be doing this 20 hrs a week. "SOB, WHY THE F**K DID I HIRE HIM?!?!?"
I'm just wondering.
How much do you compensate a new fast sign production employee with zero experience and competency?

yikes, we start at 12$ an hr. I wouldn't be able to sleep at night if i paid less than that.

and if they don't deserve that, we don't hire them.

 

[SqueeGee]

We've had better success hiring people with no experience in the sign industry and training them. As such, our starting wages are lower but we also offer benefits that average out to $4 per hour on top of their hourly rate.

I'd love to offer a pay for performance compensation model but just haven't figured out how to structure it. Anyone else doing this?

 

[threeputt]

We've had better success hiring people with no experience in the sign industry and training them. As such, our starting wages are lower but we also offer benefits that average out to $4 per hour on top of their hourly rate.

I'd love to offer a pay for performance compensation model but just haven't figured out how to structure it. Anyone else doing this?

About the only way to do that is to make an employee into an independent contractor. (if he or she is willing) But I think you'll run afoul of labor law doing that, because such a person has to have his own tools, come and go at his own discretion, not work under your direction, set his own hours, and a whole hosts of "tests" the State imposes.

Finally, this: About 30 years ago I tried it in Oregon with my number one employee. He was to be paid a percentage of the job order price. If it was a hundred dollar truck lettering job, he'd get maybe 40% or whatever.

You know what happened? He looked through the written up job orders, picked out the "plums", the ones he thought he could make the most money on, and did only those. Left me with all of the "trouble" jobs. (if you know what I mean)

That relationship didn't last long.

 

[Gino]

Had an employee, maybe about the late 80's or so. Quite good. His name was Lee. He was good at doing most anything, except thinking. Anyway, he was quiet and did everything he was told. Got a new girlfriend and suddenly he became a little vocal about some things, but nothing I couldn't handle. Anyway, one day he came strolling in about an hour or so late while I was talking to some customers and he just stood in back of his desk and stared at us. I said very casually, your stuff is over there, if you want to get started. He laughed a little and said, I don't think so. You need to pay me more money to work for you. I said, sure, no sweat, just get started, you got the raise starting at 8 this morning. I got back to my customers, apologized to them for the interruption and kinda ushered them into a different area. Told them, he does this kinda thing from time to time. He has financial problems, then they become my problems and they agreed it happens with employees all the time.

Anyway, they left and I went over to Lee's desk. What was that all about ?? Well, the way I see it, you can't be in business without me. Huh ?? Whadafug ?? I came back in here last night and looked up what you got for doing those signs last week for Kreitzie. You got $680 and all I got was $90. I said, are you f*ckin' serious ?? He said, I saw it, that's what you charged and I only got a fraction of that. No you f*ckin' fool..... you mean you came back in after hours and went through my private files ?? I trusted you and I paid you to work here..... not be an after-hours accountant. You are done. Gather your sh!t up and don't talk to anyone else here and get the f*ck out. I never wanna see your f*ckin' face again as long as I live. You are that f*ckin' stoopid that you think I made out on the deal ?? I paid for all that aluminum, I paid to have it cut down. I paid to have pounces made. I paid for the paint, brushes and the paper towels for you to clean the stuff off. I paid the heat, the lights, the insurance and the licenses to have this place. I paid for the fire extinguishers, the rent, but most of all I paid you to come here and paint for me. In the long run, you made more on this project than I did, but I rely on turnover and repeat work. You just rely on me to keep you paid. For 4 years, you never had to worry, well, get the f*ck out and find yourself a job.

Heard from someone who knew him years later and said he had always regretted that day he did that. He never thought I would do that.

No one holds you over a barrel. No one. You pay someone to come in and do their job or you'll find someone to take their place. It might not sound easy, but you can't have someone hold you hostage in your own business. Either you did something wrong or don't belong in the firing & hiring position in your company.

 

[reQ]

There are no irreplaceable employees. Got personal problems - to bad, i don't care and i don't want to see it affecting your work, because you are getting paid from my pocket. You are not going to be rich working at the sign shop as a regular sign guy, its obvious, but most places pay decent money, considering you are decent employee. If your not happy, there are plenty of other jobs where your skills & attitude will be appreciated.