When should you use fixed rates versus hourly rates for your bookkeeping tasks? In today's episode, co-hosts Hannah Robinson and Melissa Honan explore the pros and cons of flat-rate pricing versus hourly billing - and which payment type works best for a bookkeeping business.
- Melissa starts the conversation by highlighting the difference between paying an hourly rate versus a flat rate and what the law says about it.
- For Melissa, all new hires should be paid a flat rate until they get accustomed to the core business processes.
- When working with subcontractors, Hannah believes a fixed rate will get things done faster than an hourly rate.
- Melissa goes through the benefits of setting a fair rate for both the employer and the employee.
- Hannah reveals how hourly rates are mostly influenced by the economy and the demand for skilled labor.
- According to Melissa, one of the main benefits of hiring full-time employees is they only have to worry about production quality and not putting in as many hours as possible.
- Melissa doesn't really care how an individual gets paid as long work gets done and the rate is fair for the parties involved.
- Melissa shares what she would do to keep high-performing employees during a recession.
- Hannah and Melissa discuss the benefits of having a consistent pay structure - there's nothing worse than working for an organization with inconsistent pay.
- Hannah explores a simple way to pay employees according to your budget and still attract top talent.
- Melissa is a huge advocate of fair pay - employees are more likely to leave if they believe the potential pay is not worth their time.
- Hannah and Melissa agree that business owners should not take advantage of the job market and pay less for high-quality labor.
- Melissa breaks down the benefits of implementing a bonus structure in your business - bonuses are a great way to improve employee retention, increase productivity, and thank employees for their contribution in the team.
- Melissa goes through the mistakes she made when developing a pay structure for her business.
Mentioned in this episode:
hello@ilovebookkeeping.com
