Here goes with BLOCKBUSTER information on the true cost of employment. Data included here is based on UK minimum wage, national employers contributions and the upcoming obligatory pension contributions.
HOWEVER, all other florists please take a moment to read this because we've included some FRESH THINKING on how to gauge, calculate and pay the right amount of money to staff. Its an interesting technique that can help ANY florist in ANY country to improve skill sets of staff in your flower shop.
I have based the following calculations on the new minimum wage of £9 per hour which is set to commence in 2020. So the numbers here are forward thinking
Data from here > Telegraph
Calculations are based on minimum wage in 2020. Of course our skilled florists will be asking for more then minimum wage.
2080 paid hours per annum per full-time employee X £9 = £18720
Employers gross National insurance contribution £2,822.88
Employers Pension contribution. Min. On £9 per hour
2018= £ 257.92
2019= £ 386.88
Wage (for £9 x 40 hours x 52 weeks) £18720
Employers .NI. Contribution £2.822.88
Pension contribution at 2019 rate £386.88
= £21.929.76. Divided by 2080 paid hours = £10.54
2080 hours includes a % of non-productive holiday pay. Statutory of 5.6 weeks per =28 day
28 days x 8 hours per day. 224 hours
2080 paid hours minus 224 non-productive holiday hours = 1856 productive hours
Therefore total paid £ 21.929.76 divided by 1856 productive hours is £11.82 per paid productive hour.
And that's just for entry level staff. It would be easy to comprehend the florists asking for £2 or more, per hour for their skill set.
31.13% will be the additional cost on top of the stated hourly pay. If a florist gets £12 per hour because of skill set. That will equate to £15.76 per hour in real costs. (When wage, N.I, pension contribution and non-productive holiday hours are taken into account.)
Looking at the driver on £9 per hour
£11.82 divided by 60 minutes = 19p per minute. So five minutes taken, having a coffee, would cost the company 98p.
Is Cheapest Best?
So if it takes a semi-skilled florist one hour to make a wreath, the cost in wage is £11.82, where as a skilled florist who can make 3 wreaths per hour at £15.76 reduces your wage bill to £5.25 per wreath made.
So this clearly points to education & training being the key tool to profitability. So how do we measure our training programs? Of course start by measuring the ability of our own staff.
Below we have given you a score sheet. It's non-controversial, its a tool to measure where the employee is today, where they need to improve on certain areas, or perhaps controversially where the boss needs to bring in outside trainers, or else up-skill themselves for the betterment of the entire team.
Awarded Points For Skills Document... A Way To Measure Skill Set
This system uses a 0,4,7,10 points award appraisal of the skills each person has, and can be used to set the rate of pay and pinpoint where extra training and effort is required.
The points system is best reviewed when an employee asks for a raise, or every 4/6 months to focus on improving skill levels.
The zero point for example has the following, " Can not perform function." the first part of the scoring can be used when appraising florists skills, and the section in bracket when appraising working practices of an everyday nature.
0. Can not preform function. ( very bad )
4. Can perform function with full supervision ( improving )
7. Can perform with little supervision ( reliable )
10. Can perform fully unaided. ( fully dependable )
To access and start measuring your employees (and your own!) skill set please click here!!
Hopefully, this is something you can return to every 6 months, or on occasion when (if) an employee requests a pay rise.
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Simon & Team