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
Join ESA on Zoom for their first webinar of the fall, Electrically Safe Work ...
Being able to quickly adjust to the unexpected is a big part of any construction project, but solar ...
Rob McKinney will present on "The Eight Steps to Digitize Construction Workflow" during this ...
CE Pro announced the winners of the 2020 CE Pro BEST (Best Electronics Systems Technologies) ...
Nexans Canada has launched a service providing cable reel tracking via connected devices. The ...
The Manitoba government has expanded its Back to Work in Manitoba Wage Subsidy Program as part ...
As part of ESA’s expanding online services, the new Plan Review Portal will provide more options ...
Looking to enhance your business skills as an Electrical Contractor? These courses were designed to ...
Southwire has aquired Construction Electrical Products (CEP) of Livermore, CA. Serving the ...
A century of trust: UL in Canada is celebrating our 100th anniversary! We proudly support the ...


Arlington TVCE Pro announced the winners of the 2020 CE Pro BEST (Best Electronics Systems Technologies) Awards at CEDIA Expo Virtual this week. Arlington is pleased to announce that their Low profile 5x8" Steel TV Box™ (TVL508S) won the CE Pro BEST Award in the Mount Lift Media Concealment category.

 This year’s winning entries were chosen by an independent voting panel of integrators along with the editors of CE Pro.

 

 

 

Read More


 

Connected Drum Internet of Things Nexans Canada has launched a service providing cable reel tracking via connected devices. The “Connected Drum” Internet of Things (IoT) service allows customers to benefit from real-time location, theft and loss detection and management of residual cable lengths on reels. 

By tracking and monitoring a fleet of cable reels that are off-site or at subcontractor locations, significant savings can be realized. The service includes an online and mobile software platform for efficient and convenient management. This innovation provides customers with the real-time location of each reel as well as an alert system for monitoring on-site events including deliveries and pick-ups.

Read More


 

 

ManitobaThe Manitoba government has expanded its Back to Work in Manitoba Wage Subsidy Program as part of its continued commitment to safely restarting the provincial economy.

“The Back to Work wage subsidy is benefiting hundreds of Manitoba businesses that are bringing back employees who were laid off during the COVID-19 pandemic, and hiring more staff to boost their operations and provide valued services to Manitobans,” said Manitoba Premier Brian Pallister. “Manitoba has designed some of Canada’s strongest support programs to help relieve small businesses of unexpected financial burdens...

Read More


 



Terry BeckerBy Terry Becker

We are quickly approaching January 2021 and publication of the 5th edition of the CSA Z462 Workplace electrical safety Standard. This is good news for Canada as we continue to evolve in our identification and management of the electrical hazards of arc flash and shock.

But as I have quoted in the past, we need to ensure we are getting it right, and there is still a lot of work to be done. Most of the focus has been on arc flash and I am concerned that the electric shock hazard has been neglected.

Read More


 

Product News

  • Prev
Harmonious design, superior technology and safe operation merge in °STELPRO’s all-new programmable ...
SmartDC™ fast charging stations are specifically designed to resist vandalism and perform ...
Mersen and F & K DELVOTEC have joined forces to create the optimum battery assembly solution to ...
Lighting Analysts have announced the release of Luxiflux® Area, a web-based exterior lighting ...
EarthTronics architectural grade Lumen & Color Selectable LED Downlight Fixture Series offers ...
The optimally engineered diffuser throws the light downwards exactly where it is required, while ...
The RMHO series of high output remote heads are ideal for applications requiring maximum light ...
RDR Residential Downlights are LED retrofit options to replace legacy downlights in many existing ...
Lightheaded’s Contortionist series features a dual axis so that it can be tilted and rotated with ...


 

EarthTronics LED Downlight FixtureEarthTronics architectural grade Lumen & Color Selectable LED Downlight Fixture Series offers three different color temperature and lumen levels to ensure proper lighting for a variety of new construction and retrofit/renovation applications including wet locations such as soffit and covered walkway installations that are out of direct weather.

Designed for flexibility with a high 90+ CRI for enhanced color clarity, the Lumen & Color Selectable LED Downlight Series is available in 6”, 8” and 9.5” fixtures. The 6” fixture can be switched to 7, 10 or 18 watts to produce 700, 1000 and 1500 lumens, while the 8” fixture can be set at 10, 15 or 22 watts to deliver 1000, 1500 and 2000 lumens. 

Read More


 

Betacalo Soft SQThe optimally engineered diffuser throws the light downwards exactly where it is required, while creating a subtle indirect glow on the ceiling. Ideally suited for atriums, lobbies, boardrooms and reception areas.

Body: Aluminum and steel.

Diffuser: Opal acrylic.

Drivers: HPF electronic for 120-277V (EU-240V)

Remote mounting of drivers: Wire Size (max distance from canopy to drivers) 18 AWG - 9.5' (2.9m), 16 AWG - 19.5' (5.9m), 14 AWG - 29.5' (9m). Drivers must be accessible after installation.  

Read More


 

Peers & Profiles

  • Prev
Today, control systems are penetrating nearly every industry imaginable, and it is no surprise ...
Energy Efficient Lighting is a LED lighting manufacturer with nearly 30 years of industry ...
Dee Durant is an industrial electrician apprentice attending Conestoga College and an Ambassador ...
ECAO recently launched a new program called Future Leaders Advisory Council (FLAC). Their inaugural ...
At 14, Tom Miguel was sitting in the counselor’s office of Silverthorn Collegiate Institute in ...
Meredith Halfpenny is a Wind Site Technician with Boralex where she inspects, maintains, and ...
Rutul Bhavsar is a final year Electrical Engineering student at Mohawk College. He recently ...
Shannon Tymosko is a first-year apprentice with IBEW (International Brotherhood of Electrical ...
ELG Electric is an electrical contractor based out of Goderich, Ontario serving the area’s ...
Founded by Warren Osak, Electromate specializes in Robotic and Mechatronic Solutions, distributing ...

Dee DurantDee Durant is an industrial electrician apprentice attending Conestoga College and an Ambassador for Kick Ass Careers. As an ambassador for KickAss Careers she spent time shadowing mentor and KickAss founder Jamie McMillan attending events for the organization.

The advancement of women in male dominated industries is an important endeavor for Durant, inspired by her mother, who was the first woman on the Brantford Police department. In EIN's interview with Durant, she discussed the future of electrical work, and how the ongoing pandemic is affecting our country’s students.

Read More


 

ECAO's Graeme AitkenBy Blake Marchand

ECAO recently launched a new program called Future Leaders Advisory Council (FLAC), their inaugural meeting was held virtually this past June. Discussing the thought process behind FLAC, ECAO Executive Director, Graeme Aitken explained there were a number of factors that went into the decision.

The program is meant to be a resource for young professionals in the electrical industry for networking, building professional development skills, mentorship, and learning about the inner workings of the industry in general.

 

Read More


 

Copper $US Dollar price per pound

Kerrwil Publications Great Place to Work. Certified December 2019 - December 2020

538 Elizabeth Street, Midland,Ontario, Canada L4R2A3 +1 705 527 7666
©2020 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