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
MP Scott Duvall has introduced an amendment to the Income Tax Act regarding travel expenses for ...
George Brown College has partnered with Hilti (Canada) Corporation to help women build rewarding ...
Signify and the National Hockey League (NHL) has announced a partnership to help the more ...
Join the Electricity Distributors Association (EDA) on March 23 for a virtual session during which ...
ABB is hosting a Smart Building thought leadership session with six webinars presented by industry ...


 

www.liteline.com

 

 

 

 


 

Canadian Electrical Contractor Discussion Group: Can You Count the Deficiencies?

EIN CECD 400Have you ever been called to fix the work of a 'handyman'?

"Was supposedly done by a"certified ' electrician....told the homeowner that he got a $266 permit....no record at TSBC. Can you count the deficiencies?"

"There is a second panel change in the triplex also.......even more deficiencies. Think the guy was a glorified handyman. Ones not obvious: 240 BB heat hooked up 120....drier on 2p20....range on 2p50....water heater fed with 2c14 Bx on 2p15."

Go HERE to join the discussion

 


 

Surgelogic RecallProduct: Surgelogic™ NQ SurgeLoc™ Surge Protection Device.

Issue: The Surgeloc Surge Protection Device can experience an arc event, which can result in a fire hazard.

What to do: Consumers should immediately stop using the recalled surge protection devices and contact Schneider Electric for instructions on receiving a free equivalent replacement surge protector.

 

 

Read More


 



Terry BeckerBy Terry Becker, P.Eng., CESCP, IEEE Senior Member

The electric shock hazard has been neglected.  Journeyman Electricians have accepted been shocked as part of the job, a “right” of passage, a badge of honour. 

This has not been acceptable and Journeyman Electricians may not be aware of the long term sequela health effects of receiving multiple low voltage electrical shocks and how it may have impacted them.  With respect to treatment there is only a single formal recognized treatment centre in Canada, the St Johns Rehab Centre. Electrical Injury Program.

Read More


 

EIN Code Quiz 2Take this opportunity to test your knowledge of the Canadian Electrical Code - Part 1. Here are two questions on essential electrical systems: health care. 

You'll find the answers in EIN articles written by our code experts — mainly Bill Burr and Terry Becker — and of course in your own best practices. Answers will be posted on our website in a few days and published in our next issue. Good luck and share your results with our Facebook group: Canadian Electrical Contractor Discussions.

 

 

Read More


 

Product News

  • Prev
Any time an electrician or technician makes a voltage measurement on a live conductor, there is a ...
Autodesk, Inc. has announced the worldwide availability of Autodesk Takeoff, a new product ...
Autodesk, Inc. has announced Autodesk Build™, a new project and field management ...
The eLumigen High CRI C1D2 LED Fixture is the ideal light source replacement for Paint Booth, ...
Chief PAC526 Series Wall Boxes are now available through Wiremold. Contractors have been frequently ...
adorne® Furniture Power Centers are now available with USB Charging.      
The IDEAL® line of combination drill taps combines the tasks of drilling, tapping and ...
The smart charging stations of the SmartTWOTM family are specially made for areas dealing ...
For those times where you want ultimate flexibility and portability for your lighting needs, Lind ...
The EcoWing V Series is a premium architectural troffer utilizing our revolutionary optical film ...

 

Extech Non-Contact High Voltage DetectorFLIR Systems has announced the availability of the Extech DV690 its first non-contact high voltage detector with a detection range of up to 69,000 volts (69 kV). The industrial-grade DV690 provides early warning alerts of energized electrical components for utility lineworkers, telecommunications installers, first responders, search and rescue teams, and tree removal services.

The DV690 features five flexible mounting options: handheld, around the neck, clipped to a belt, strapped to an arm, or attached to a universal spline hot stick. The three handsfree possibilities allow the most optimal operation to efficiently and carefully complete a job. Using a hot stick creates a safer distance to target, extending operator reach.

Read More


 

 

Milwaukee Radius Compact Site LightThe M18 RADIUS Compact Site Light with Flood Mode provides a two-in-one solution for area and task lighting with less to carry. The compact LED light delivers 2,200 lumens in area mode and 1,000 lumens in flood mode. The light offers up to 16 hours of run-time with the option to be plugged in using the AC inlet for extended run-time.

Its compact size allows you to take this site light on and off the jobsite effortlessly and its 4-1/4" metal hanging hook allows you to easily hang the light overhead. The durable light is equipped with a high impact polycarbonate lens to withstand harsh jobsite abuse. The LEDs never need to be replaced and are backed by a limited lifetime warranty. 

Read More


 

 

Panel PC1200With the Panel PC 1200, B&R introduces a compact and cost-effective all-in-one PC. Equipped with the latest Intel Atom processors and up to 256 GB of mass storage, the Panel PC 1200 is ideal for running HMI applications under Windows or Linux operating systems.

With 2x Gigabit Ethernet and 2x USB 3.0, the Panel PC 1200 is ready for integration into any machine network. Compact CFast cards are used for data storage.

 

 

 

Read More


 

Peers & Profiles

  • Prev
Like most major events over the last year, the COVID-19 pandemic put serious restrictions on the ...
This past December Jennifer Green was honoured with Canada’s Most Powerful Women Top 100 Award for ...
“It was quite surprising,” said Stephanie Smith of being named EHRC’s Leader of the Year. ...
As an advanced networked lighting controls company serving the industrial and large commercial ...
Trilliant, an international provider of utility solutions for advanced metering and smart grid ...
For more than a century, ABB has been investing in Canadian technologies and products to support ...
Mackenzie Gillan, a bright young lady from Baysville, Ontario, tells us about how she learned ...
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 ...


EIN Green 100 400

By Blake Marchand

This past December Jennifer Green was honoured with Canada’s Most Powerful Women Top 100 Award for the Skilled Trades category by WXN (Women’s Executive Network).

“It is truly an honour to be recognized by WXN and to be among this group of amazing women,” said Green of earning the distinction. “Throughout my career, I’ve worked with many great mentors and team members – to them, I say thank you for always inspiring me. I am absolutely thrilled.” Green is an industrial mechanic millwright by trade and works with Skills Ontario as Director of Competitions and Young Women’s Initiatives. 

Read More


 

Jo Istanbul Four Seasons ABy Owen Hurst

Recently, Electrical Industry Canada has developed a relationship with Women in Renewable Energy (WiRE), a non-for-profit group developing resources and networking potential for women and all working or planning to work within the renewable energy sector. Aside from being the WiRE President & CEO, Joanna Osawe is the Global Business Development Manager of Major Projects for DMC Power Inc.

EIN sat down with Osawe to learn more about WiRE and the substantial benefits it provides. Joanna is very personable and open regarding her career and her ambition, as well as the opportunities she is developing for women nationally and globally. 

Read More


 

Stephanie SmithBy Blake Marchand

“It was quite surprising,” said Stephanie Smith of being named EHRC’s Leader of the Year. “Leadership in 2020 has certainly been a challenge for everybody in the world let alone the nuclear industry or the electricity industry.”

An engineer by trade, Smith spent the majority of her career with Ontario Power Generation (OPG). She was the first woman to be certified by the Canadian Nuclear Safety Commission at the Pickering Nuclear Generating Station where she served as Plant Manager and was recently named the first President and CEO of CANDU Owners Group. Smith is also a passionate advocate for diversity and inclusion.

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
©2021 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