Canadian Electrical Industry News Week

Nonproductive Employees

Shawn McCadden

If your business pays an hourly employee for non-productive time,you’d better know how to build it into your labour charges so your customers are paying for it, not your profits. The theory for how to do it is actually very simple.

What is non-productive time?

Non-productive time is the hours you must pay an employee for, when he or she is not producing income for the business. Basically it’s what is typically referred to as non-billable time. Non-productive time can fall into a variety of categories.

Here is a brief list of common examples:
▪ attending weekly meetings
▪ shop, tool and vehicle maintenance
▪ commuting to/from projects
▪ attending educational events and training
▪ vacations, holidays, sick days
▪ attending company social functions

3 steps for including non-productive time in your labour rates

In order to pay an employee for his or her non-productive time a contractor must charge enough for that employee’s annual billable hours to also cover the non-billable hours. To figure out how much to charge, follow these simple steps.

1. Add up the total annual cost to the business to compensate and support the employee. In addition to hourly wages, here is a partial list to help you out. Add any others specific to your business.
▪ employer paid taxes and social security
▪ vehicle expenses
▪ vehicle replacement
▪ workers compensation
▪ liability insurance
▪ medical benefits
▪ education and training
▪ employee raises during the year
▪ pension contributions or similar

2. Add up the total annual non-billable hours for that employee and subtract them from total paid hours to determine that employee’s total available billable hours.

3. Divide the total annual cost to compensate and support the employee by the total annual billable hours for that employee.

The resulting number is what you need to charge for each billable hour so it will, over the course of a year, bring in the money needed to pay that employee for all billable and non-billable hours.

Here is an example to help show how the math works.The example assumes an annual cost of $60,000 to compensate and support the employee. It also assumes the employee will be paid for 2080 hours but can only be billed out for 1900 hours:
• $60,000.00 ÷ 1900 billable hours = $31.58/Hr billable hourly rate

To prove the example above works, simply multiply the billable rate by the number of billable hours to prove it will produce the total amount of money you will need to cover the cost of the employee for the entire year.
• 1900 Billable hours X $31.58/Hr = $60,002.00

It’s that simple! Kinda...

Figuring out what to charge to cover your employee’s non-productive time is simple to do, but here are a few caveats to keep in mind so you don’t come up short on the money you need.
• If the employee doesn’t work all of the assumed billable hours, you will not collect enough money. So, if you have an employee who is constantly sick or is unreliable, realize that even though you may not be paying the employee for the missed time, that missed time is not contributing to the dollars you need to cover the total annual cost of the assumed non-productive time.
• If in your billable hourly rate you included the costs of items required to support the employee, you will also come up short on the money you need to pay for those items as well.


Read more in EIN from Shawn McCadden:

3 Ways To Get Fewer Leads But Close More Remodeling Sales
Don’t Underestimate Your Estimating System’s Potential
Tips on Ball Park Pricing and Charging for Estimates
Is A Contractor Really a Salesperson If He or She Hits Send?
3 Ways To Get Fewer Leads But Close More Remodeling Sales
3 Simple Steps to Covering an Employee's Non-Productive Time
Setting the Example: Getting Employees to Think Like Owners
Comparing Contractor Mark-ups Can Be Pointless and Very Risky
Don't Put Your Business At Risk By Guessing At What Mark-up
Simple Profit Sharing Plan for Contractors

Check out Shawn’s website http://www.shawnmccadden.com/ and blog www.shawnmccadden.com/Subscribe-to-The-Design-Builders-Blog.

* “Understanding what impacts your construction company’s reputation,”

http://www.pn-projectmanagement.com/construction-management-tips/understanding-what-impacts-your-construction-companys-reputation

 

Changing Scene

  • Prev
The year was 2002: Jean Chrétien was Prime Minister, Avril Lavigne topped the charts, the ...
The company’s wholesale locations will be branded Robinson Supply, and the lighting and bath ...
The 500+ km transmission line from Edmonton to Fort McMurray includes two substations and involved ...
Poweska is currently BC Hydro’s Executive Vice President, Operations, with responsibility for ...
During E.B. Horsman & Son’s (EBH) Annual General Meeting on March 5, 2019, ABB Canada was ...
The Electrical Safety Association plans to implement a risk-based approach for electrical wiring by ...
Organized by the Hong Kong Trade Development Council, the Hong Kong International Lighting Fair ...
MCEE’s New Product Competition highlights the commitment to efficiency, conservation and ...
Desdowd Inc. has been chosen to serve as Thermon’s manufacturer's agent for the province of ...
Gerrie Electric Wholesale Limited’s website has a fresh new look but continues to offer the ...

Electrician Forum Brought to you by Schneider Electric

As industry experts you know the products you use everyday better than anyone and should have input on what information you receive about products and what could improve them.

Therefore, we want your insight on the biggest challenges or issues you face when installing loadcentres, breakers (CAFI, GFI's…) and other surge protection devices. We ask that you do not provide product specific details but rather your general issues and concerns or any questions that have come to mind while working with these product types. Provide us with your valued expert insight into the issues you have faced so manufacturers can better inform you about the installation and use of these products. Lets generate some discussion that will help guide the Industry.

Make your comments  HERE

 

CSAClimate change and its associated impacts will play a central role in Canada's electricity future. In fact, the Conference Board of Canada estimates that approximately $347.5 billion will need to be invested in electricity infrastructure to maintain the system reliability we have today. Making smart investments now can improve the system and help to avoid more severe climate related costs in the future.

“The critical infrastructure we rely on to power our daily lives must remain resilient to more damaging and frequent extreme weather events,” says Mary Cianchetti, President of Standards at CSA Group. “Standards play a critical role in making that happen.

Read more about climate change solutions...

 

 

 

BCEA Victoria Trade Show

The BC Electrical Association in conjunction with the Victoria distributors and manufacturers committee on Vancouver Island will be holding a tradeshow and golf tournament on May 2, 2019 at the Westin Bear Mountain Resort.

This will be a table top trade show. Distributors have agreed not to hold their own tradeshow three months on either side of this date to ensure a successful event.

 

 



Read more about the BCEA Victoria Trade Show...

 

 

Codes and Regulations Brought to You by the CSA Group

  • Prev
The Code is a comprehensive document. Sometimes it can seem quite daunting to quickly find the ...
The Code is a comprehensive document. Sometimes it can seem quite daunting to quickly find the ...
In this article: Tables — Part B. This section of the Code contains 99 tables of essential ...
In this article: Section 58 — Passenger Ropeways and Similar Equipment. Rule 58-000 ...
  Unauthorized CSA Group certification marks have been found on wiring by Triumph Cable ...
In this article: Section 52 — Diagnostic imaging installations. The CE code is a ...
In this article: Section 46 — Emergency Power Supply, Unit Equipment, Exit Signs, and ...
  In this article: Section 44 — Theatre Installations. The CE Code is a ...
CSA has published C22.2 No. 60947-7-3, the harmonized standard for low-voltage switchgear and ...
  Electric welders. The CE Code is a comprehensive document. Sometimes it can seem ...

 

EE LightingBy Blake Marchand

Energy Efficient Lighting is a LED lighting manufacturer with nearly 30 years of industry experience. One that was founded on principles of environmental sustainability and responsibility to future generations. Based out of Markham, Ontario, Energy Efficient Lighting are established veterans within the LED lighting industry. And with the prominence of LED lighting being a fairly recent industry trend, it is a claim that a select few can make. They offer complete lighting solutions for commercial and industrial applications. Their product lines include conventional lighting fixtures, LED retrofit kits, complete LED luminaires, LED systems, drivers and electronic ballasts.

Read more about Energy Efficient Lighting...

Tools for the Trade

  • Prev
  IDEAL Industries has introduced Combination Drill Taps to its tool lineup. Combining the ...
  Stripping and crimping device, 100 - 240 V input voltage, for insulated ferrules with a ...
Professional all-in-one cutter/stripper for coaxial and twisted pair cables     ...
  Klein Tools' Coax Explorrer 2 tests coaxial cable and maps up to 4 locations   ...
  Ideal Industries' T-14 wire stripper s are ideal for all professionals working within the ...
  The ATS850 conveyor eliminates all types of electro static discharge requirements. ...
  Lorik Tool & Automation has the experience and ability to manufacture a variety of ...
  Ideal Industries' 26 piece insulated Journeyman kit is ideal for new electricians or for ...
  Klein Tools Deluxe Fish Rod Set comes in 19 pieces that when assembled can fish wire and ...
  BendWorks Software was designed to help electrical contractors adopt this new process ...

Product News

  • Prev
NJZ Lighting new design Freedom II Series Omni-directional adjustable design LED high bay Light ...
The JP Series plug and play lamps from ForeverLamp are ballast driven LED replacement for Metal ...
Current’s newest outdoor product is the ERLC Compact Cobra Head which delivers the same lumen ...
The compact Fluke Norma Power Analyzer 4000 provides the latest measurement technology to assist ...
MI 3210 TeraOhm XA 10kV is a portable, battery or mains powered test instrument with excellent IP ...
Next-generation MicroScanner verifies voice/data/video cable and services with a revolutionary user ...
The E36312A/GPB from Keysight Technologies is an E36300 series triple output programmable DC power ...
Introducing VoltAware, the sleek, non-contact voltage tester designed by the innovative minds at ...
For a limited time, you can get up to 25% off your purchase of a new Keysight InfiniiVision ...
The MPK-257 digital very low resistance ohmmeter is a portable, microprocessor-controlled ...

3-Phase Electrical Ltd.By Blake Marchand

Winnipeg-based 3-Phase Electrical prides themselves on the high calibre of work they produce and their attention to detail, always ensuring that all work is performed to the highest possible standards. Their success is attributed to understanding their customers’ needs and continuously exceeding customer expectations.


Their expertise is facilitated by a solid foundation of careful planning and diligent scheduling, both of which are key elements to delivering projects successfully.

Read more about 3-Phase Electrical Ltd....

 

 

HeatingBy Stéphane Lettre

Today the whole planet is talking about climate, reducing the ecological footprint, and energy efficiency. Various governments are making commitments to reduce greenhouse gas emissions and people are becoming more aware of the impact of choices they make on a daily basis. Another phenomenon that is accelerating in parallel is the search for lower costs among households with increasing levels of debt and companies seeking to remain competitive and profitable.



Read more about Thermostats...

 

 

 

Peers & Profiles

  • Prev
Energy Efficient Lighting is a LED lighting manufacturer with nearly 30 years of industry ...
Matt Stanson is a master electrician with over 30 years of experience. He now leads a team of ...
After eight months, 263 events, 17 broken clocks, and thousands of competitors, Ideal ...
The National Electrical Trade Council (NETCO) is an industry-funded, not-for-profit organization ...
After eight months, 263 events, 17 broken clocks, and thousands of competitors, Ideal ...
Born and raised in western India, Rupali’s passion for mathematics and science began at a ...
After eight months, 263 events, 17 broken clocks, and thousands of competitors, Ideal ...
Allison Wood and Dominique Rivet are two apprentices who had a wealth of career options available ...
  In a recent sit-down Electrical Industry Canada was able to learn a little ...
David Johns is a unique and dedicated individual both at home and in the workplace. At home he is a ...

Copper $US Dollar price per pound


 

EHRCIn a recent interview with the The National Post, Electricity Human Resources Canada CEO Michelle Branigan said the need for workers in Canada’s electricity industry is “extremely critical.”

The industry directly employs almost 107,000 people, but less than 1 in 20 is aged 25 or under, only 1 in 4 is a woman, and just over 1 in 10 is from a visbile minority.

These statistics are from EHRC’s Workforce in Motion, a labour market intelligence research initiative for the years 2017-2022. The research report is a planning and informing tool for a wide range of electricity sector stakeholders and provides critical information to the sector for both short and long term resource planning.

Read More

 

 

Kerrwil Publications

538 Elizabeth Street, Midland,Ontario, Canada L4R2A3 +1 705 527 7666
©2019 All rights reserved

Use of this Site constitutes acceptance of our Privacy Policy (effective 1.1.2016)
The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of Kerrwil