include the essential functions of the job. These summarize what the employee does to complete his or her specific tasks and includes sections related to the results of these tasks. Following are several examples of items that may be included in the results-oriented portion of the job description:
Keeps equipment operating by following operating instructions; troubleshoots breakdowns; maintains supplies; performs preventative maintenance; schedules repairs
Maintains a safe and secure workplace by adhering to company standards and policies and to legal regulations
Contributes to company success by being respectful of clients and by helping other employees accomplish their tasks
A major concern of many contracting companies is the hiring of minor employees, those under 18 years of age. Most states require that minor employees obtain a work permit prior to beginning a job. Depending upon their age, minors may be prevented from operating most power tools, driving company-owned vehicles, and assisting in “dangerous” work. The federal government has issued regulations covering the maximum hours a minor may work, both by the day and by the week. The United States Department of Labor has links to more detailed information on its website, which can be found at www.dol.gov.
Many owners of contracting businesses will, when asked, tell you that, “I probably work for about fifty cents an hour.” While untrue, it sometime feels like it. On the other hand, most employees choose a job because they think that they will like the work and they are satisfied with the salary. A positive workplace with caring bosses does a lot to create a successful work environment, but competitive wages and benefits are what maintain the success.
Most segments of the contracting industry are unique in that the workplace changes from day to day or week to week. Workers who choose to work for contractors enjoy the variety of jobs they perform as well as the prospect of working outdoors and/or working at different locations. While some factory jobs may offer higher wages, the typical successful contracting employee would go crazy with the daily routine often found in a factory.
Many industry associations conduct periodic wage and benefit surveys and share the results with the participating companies. Contractors that take advantage of this opportunity can become more competitive because they know what their competitors are paying on average for wages and benefits; knowledge of typical wages and benefits is also useful because employers can prove to their own employees that they are keeping pace with the industry.
While benefits may be seen as the icing on the cake, most employees expect them. Employers who fail to offer these benefits will likely suffer higher turnover and have a less skilled and dedicated work force. Typically, however, most employers institute a probationary period of several months before an employee is eligible for benefits. It makes little sense to give a new employee a paid day off after working for only a few weeks.
Paid holidays are expected by all employees. Typically six holidays are covered as legal holidays, but some employers include the day after Thanksgiving as a working day.
Paid vacations, based on years of service, are another expected benefit. Seasonal contractors may wish to take into account the fact that many of their employees may be on layoff for several months.
Retirement plans, while not yet universal, are becoming more popular each year, but most are predicated on the employee contributions. The problems faced by our Social Security system, coupled with the demise of corporate pension plans, make it more imperative than ever that all workers take steps to prepare for their own retirement. Larger companies can offer a 401(k) plan, giving their employees the opportunity to invest pre-tax wages that will grow tax free; the employer may make contributions to employees’ accounts as well. The Roth 401(k) has contributors paying taxes up-front to make tax-free withdrawals during retirement. It has certain advantages over the traditional IRA, but all tax considerations need to be taken into considerations. These plans may be expensive and somewhat complicated to administer. Small contractors have another option called the “SIMPLE IRA.” As the name implies, this plan is much easier to administer and is inexpensive for the employer. Unlike the 401(k), however, employers must make either matching or non-elective contributions to each employee’s account.
Use of a company vehicle, if offered, requires tedious record-keeping, especially if the employee uses the vehicle for personal use. The value of the personal use must be included in the employee’s taxable income. The rules and regulations established by the federal government are very complicated. The decision to offer this benefit should be made only after consultation with your lawyer and accountant.
Raises are not actually a benefit, but employers should have a policy in place regarding wage and salary raises. Most contractors give raises once per year, after the annual employee review and when merited during the year on a case-by-case basis. Any employee promoted to a more responsible position should receive a raise, as should newer employees whose progress is above and beyond expectations. While most employers do not share wage rates among employees, employees certainly know what others make. Employers should provide at the minimum, an annual cost of living raise. No raises, or those that do not keep up with inflation, will typically lead to low morale and high turnover, which means training new people. In the end, turnover and additional training will typically cost more than giving employees at least a cost-of-living increase.
Incentive plans offer an employer a creative way to reward productive and successful employees. While bonuses paid annually based on increases in sales or profits are a fine way to reward employees, it can be more valuable to give the bonus closer to the time when it was earned. Some companies reward employees immediately after a successful project is completed or pay out bonuses on a monthly basis. The most successful incentive plans reward individual effort on a continuing basis as well as companywide success on an annual basis. For new companies that are not yet able to provide bonuses, non-financial rewards, such as an additional vacation day or even an award/public acknowledgment, can be considered. Be creative—know what your people would appreciate.
Helping employees pay for continuing education can reap rewards for employers. Technical
