Reviews
Most survey respondents pay employees weekly and provide yearly raises and annual reviews, but there are some exceptions. For example, 25% of basic skilled carpenters (Carpenter 1) receive an annual raise, 5.5 % receive raises twice annually, and 2% receive raises quarterly; 19% receive annual reviews, 8.5% are reviewed twice per year, and 2.6% are reviewed more often. Six percent receive a review less than once per year.
Mainstreet Restorations & Remodeling reviews employees on the anniversary of date of hire. “We let them know four weeks prior and ask them to fill out a questionnaire about their strengths and weaknesses,” Christine Ramaekers says. “This contributes to longevity. People know exactly what is expected of them.”
Morse Construction’s employees receive twice-yearly reviews. “One is just a performance review. The other is both pay and performance,” Karen Morse says. “Even with the two reviews, we still try to regularly revisit what is on those sheets so we can point out situations that employees can participate in to meet their goals.”
What is your company’s overtime policy?
Owners
For their salary, owners Karen and Paul Morse of Morse Construction adhere to the industry standard of 10% of revenue, plus a bonus. “We have a formula to figure out what percentage of profit goes back into business, what goes to us, and what is shared with employees,” Karen Morse says. Leon Noel, of Your Kitchen and Bathroom Remodeling in Roseburg, Ore., adheres to a theory he says the founders of Ben & Jerry’s ice cream used and takes just 25% more than his top-paid employee as a salary. As sole owner, however, he does receive additional funds through a bonus.
Christine and Steve Ramaekers each have a salary and receive a bonus similar to the one they distribute to employees. “It is truly based on what the company can afford,” Christine says.
Of the companies that responded to the survey…
Company Owners
Of the one-owner companies, the average owner salary was $74,523, the average bonus was $11,020, and the average profit share was $11,234. The owner received 5% of the company’s revenue as a bonus, and 7.4% of revenue was distributed through profit-sharing.
Of the companies with two owners, the average owner salary was $59,742, the bonus was $13,005, and the average profit-share was $6,209. The owners received 3.8% of the company revenue as a bonus, and 6.4% of revenue was distributed through profit-share.