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Discussion Starter #1
How many of you out there that own a company either pay a portion or all of the employees health insurance?

We pay 100% of the employees AND famly health insurance. In some instances this is over $1,000.00 a month. Any expenses above the premium is paid by the employee ie: $500.00 deductable, etc...

The company started paying 100% back in the late 60's and I have not seen a reason to not continue paying it.
 

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Discussion Starter #5
I how much do you pay the plumbers. I may be willing to relocate.
It all depends on the work. They are paid a base rate of $10.00 or performance based, which ever is higher.

This week the highest paycheck was $33.54 gross pay an hour and that was for 43 hours of work. It all depends on how many calls we get and what kind of work it is. There has also been plenty of weeks they have only made base pay, but at the end of the year it is $23.00+ an hour.

We have had some paychecks as high as $49.00+ an hour, but that has been a while.

The benifits are posted here http://associatedplumbers.com/job.html/

I don't have a problem posting our numbers eventho there are companies on the list that is in our area. I just wish more would follow our lead and pay a decent wage and charge appropiately (sic) then we all could make a decent living. :thumbup:

During the recent downturn we have not had to layoff any of the field employees, although we did reduce the office staff. :)
 

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Medical Benefits

Wow! Good job.. I would be interested in knowing how you figure your performance pay for your plumbers. Do you base on percentage?
I like the idea.

We do everything flat hourly pay.

As for health insurance, we pay 60%. I guess we are cheap :(

I might close up shop and come to work for you!
 

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Good post. I have often wondered the same thing. We have always paid 100% of our emplyees medical insurance, except that the family is extra. We are one of only a handful of plumbing contractors in the area that have medical insurance and the only one I know of that pays 100%. In this down economy many of our competitors have jettisoned their medical insurance, cut vacation time and holidays. As for the value added, we can see a strong return on this investment with the quality of plumbers that we have on board. But as a business, you always look at a streamlined product and with the rise in healthcare it does get hard to cut that $6K check every month.
 

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Discussion Starter #9
But as a business, you always look at a streamlined product and with the rise in healthcare it does get hard to cut that $6K check every month.

Yes it does, but there again your prices reflect this additional cost that some companies do not see the benefit in and because you charge more they think you are ripping of the client.

There may be some companies here that are paying 100% of the employees, but I don't think so and I am positive we are the only ones that are also paying for the family.

We have a $20/$40 copay and a $10/$30/$50 RX card with a $250.00 deductable.

With the cost of insurance going up I will be looking at a higher deductable, but we will not be dropping the benefit.

Some of the employees want us to remove them from the insurance and give them the money. Sorry it doesn't work that way. Either you have the insurance or you don't, either way your pay is going to be the same.
 

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Yes it does, but there again your prices reflect this additional cost that some companies do not see the benefit in and because you charge more they think you are ripping of the client.

There may be some companies here that are paying 100% of the employees, but I don't think so and I am positive we are the only ones that are also paying for the family.

We have a $20/$40 copay and a $10/$30/$50 RX card with a $250.00 deductable.

With the cost of insurance going up I will be looking at a higher deductable, but we will not be dropping the benefit.

Some of the employees want us to remove them from the insurance and give them the money. Sorry it doesn't work that way. Either you have the insurance or you don't, either way your pay is going to be the same.

Good post! So I guess since I don't offer health insurance I shouldn't be charging what the big franchise companies do, and I don't.
I end up getting the jobs and my fee's are based on my costs, we do very well. :thumbup:

It doesn't make my company any less professional, in fact the customer could care less who's getting paid for health insurance, they just want the job done correctly in a professional manner. Try telling the customer your price is a thousand dollars more than the other guy because you're covering 100% of your employee's health coverage.

I offer everything else the bigger companies do. I'm a flat rate company. We have the training, phcc members, we wear the uniforms (not the white ones), we show up on time, we use quality materials, we have newer clean trucks with large lettering etc., we do it all but we don't have the large overhead with franchise fee's, psi fee's, health insurance, the trips to Vegas etc.

I guess each company has a different way of doing business. :thumbsup:
 

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Obama is about to start taxing health benefits given to employee's. So your workers are going to have to pay tax on the value of the insurance.
 

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Discussion Starter #12
Obama is about to start taxing health benefits given to employee's. So your workers are going to have to pay tax on the value of the insurance.
IF that time comes we should be on our way to a socialist state and the goverment will take care of all of us. Oh wait we are already are.

IF any or all benefits are taxed then I guess prices will have to go up as taxes are a legitimate business expense or that will be a benefit that will not be available.

Is Washington (Obama, et al) so ignorant about business that anytime taxes, minimum wage, etc.. is raised they don't think prices are going to increase to compensate for the increase in the cost of doing business?

Don't you just love the goverments way of thinking.
 

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yeah they raise minimum wage and it costs the employer 1.00 an hour then the employer raises prices 1.25 to cover it. OH they get it alright. They get the extra tax off the pay and then the extra tax on the employers raised prices also. they win twice
 

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They're talking about making a government health care system, it's all over the news right now. They also said if you don't have health coverage you will be fined! LOL
I heard the system would be like social security and that they would deduct the monthly costs from your check, or self employment tax.

I wonder what kind of coverage you will get, how much it will cost us? I pay for mine and my family through a private blue cross plan right now buy hey, if the governments plan is less I'll take it! hmmmm
 

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They keep screwing around and I'll quit work and stay at home!!!! See how they like it. I'll just sign up for welfare like the rest. I'm tired of tax's!!! They take 50% by the time you pay sales tax on the money they let ya have after they take the income tax,business license,etcetc
 

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I totally agree with you I-ranger. It does depend upon the business. The plumbing that we do is mainly residential and commercial, light on the service but willing to expand. Thus for me I need to attract the best in the area that know what they are doing without having a babysitter around them. We do have to compete with those that don't but never in the service field. I will admit I am learning SO MUCH about the service industry on here and am close to doing an offshoot company.
 

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Just recieved our Health and dental quote renewal.

Dental up 8.4%

Health up 13.8%

Looks like it is time to print a new pricing manual

I really hope it works for you but I've been watching our local franchise plumber price himself right out of the market. I drive by their shop and the trucks are just sitting there. At first they were all over the place, now they just sit most of the time.
 

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Discussion Starter #19
I guess I can start doing away with the benefits. :thumbup: That will save me a few grand a month. I could also cut back on the inventory and have the client furnish all the material. Thats an idea then I wouldn't have to worry about any material warranties. Cut back on wages and that would save a little bit on payroll taxes.

What I am getting at is that we can always find somewhere to cut cost, but health insurance in my opinion is not one of them.
 

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Cream rises to the top. Employees with desired skills tend to gravitate to employers with desired benefits. Benefits can be in the form of higher wages, daycare, insurance, pensions, good work environments, location, whatever. If you want to attract the best and brightest, you have to offer something that makes your company desirable.
 
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