ShopSavvy  
Let’s Talk Dollars  
Show Your Employees What They Are Worth  
b y P a u l B i e b e r  
hen I was managing our that your company currently has in satisfactory to both sides. The wise guy  
glass fabricator, we created place. Leave off the benefits you don’t will always want more, no matter what  
a format to show employees offer.Total it up and you’re ready for this you offer.Eventually,he’ll come around to  
what they’re really getting in compen- part of your employee review. the company’s way of thinking or will get  
sation, and what they’re costing the An employee who is making $12/hour the hint to leave. Most employees will be  
company. Employees were amazed and generally has a cost of more than shocked at this form’s total and will end  
thanked me for telling the story. $20/hour.An employee making $20/hour up thanking you for the information.  
W
The expenses are based on a 40-hour will have a cost of about $33/hour.  
work week. Divide the annual expense  
Some folks can use this to figure the  
precise cost of a raise.If you give some-  
by 2,080 to get the hourly cost. If you TrNuoewCthoe swtisse guy will sayI dont re- one a $1 bump,it costs you about $1.65.  
have a monthly expense base, divide  
that by 173.33 for the hourly cost.  
This gets people’s attention.You are still  
ceive this amount of money in my pay- going to give the raise the employee has  
The chart below is what it looks like: check, and I want a big raise now.”There earned, but it will have a stronger im-  
Lay out this form with the benefits is no answer for this person that will be pact and appreciation by your staff.  
I always figured my costs based on a  
Employee name:  
full week, but not overtime. Some em-  
Hire date:  
Salary at hire $____________  
ployees, most often those in a union po-  
sition, earn additional benefits when  
working overtime.You can add these in  
as a footnote. This will help you realize  
that overtime can be a budget killer. I  
always felt that up to 5 percent per week  
of total payroll would be okay as over-  
time. There are some employees who  
come in early to set up their crew, or  
stay late setting up tomorrow’s work,  
but anything above 5 percent would set  
off my alarm bell.  
Current wage/salary $__________ Total Salary Last 12 months $__________  
Annual scheduled hours to be worked:  
Actual hours worked in last 12 months:  
Holiday bonus $_________________________ Other bonus $_____________  
Retirement/401k/other retirement programs:  
Company contribution  
$
$
$
$
$
$
$
$
$
$
$
$
FICA match per hour  
Cost of health insurance per hour  
Cost of disability insurance per hour  
Cost of workers’ comp per hour  
Cost of life insurance per hour  
Cost of dental insurance per hour  
Cost of vacation per hour  
Covering your costs on a job, espe-  
cially one with a large labor number, is  
critical. Now that you know your true  
costs, you can bid more effectively. s  
Paul Bieber has 38 years’  
experience in the glass  
Cost of sick days per hour  
industry, with C.R.  
Laurence and as executive  
vice president of Floral  
Cost of other benefits per hour  
Cost of training/cross-training per hour  
Cost of substance use test per hour  
Glass in New York. He is  
now the principal of Bieber  
Consulting Group LLC and can be  
reached at paulbaseball@msn.com.  
Read his blog on Tuesdays at  
http://usgpaul.usglassmag.com.  
Cost of personal protective equipment per hour $  
Total of company expenses per hour  
$
10  
USGlass, Metal & Glazing | June 2016  
www.usglassmag.com