Getting pressure to hire employees instead of using contractors. Currently I pay contractors a very high % of my gross receipts(they have to carry their own gl, workers comp, and be registered with the state and IRS as a business). Avg guy (works 25 actual hard hours per week) makes $1000. Obviously the guys who work 35 - 40 make $1500+. (Installing single - to - triple play)
My competitors in the area offer employee with a truck and gas they are paying their people $15/hr plus piece if they go over a production goal. Avg I think is $750 - $1000.
We looked into hiring employees but we would get killed in expenses (trucks, gas, workers comp in Ohio is 18% the 1st year, gl, and benefits.) We figured $800 base with production bonuses is the least we can pay. (without taking a bath and even with that we will still lose revenue on an annual basis.
We appreciate the work our guys do, and don't want to screw them or lose them. So we offered their choice. All of them went contractor (but of course who wouldn't when you are looking at a cut in pay).
I don't see how other primes are doing it.
Going forward.... what do you think, employee or contractor?
What's Your Take Contract Or Employee
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