What you need to know:
- Your sector is the magnet for site workers; this is an integral part of the business you need to manage as you manage performance and your cash flow. Site workers are categorised as casual workers and technically should be paid daily.
I work in the construction sector. I recently started my own business and all seems to be going well. I have a good client base, and my clients value my service delivery. One area I need to manage carefully is ensuring my site workers come to work and balance that with their need to earn a daily wage. Recently some of them did not show up, and when they returned, they shared that their frustration is having to wait for payment. How do I manage this? Simon
Hello Simon, congratulations on venturing out to open and start your outfit. I hope you start small with trusted clients and slowly build it up.
Your sector is the magnet for site workers; this is an integral part of the business you need to manage as you manage performance and your cash flow. Site workers are categorised as casual workers and technically should be paid daily.
Of course, from your perspective, you may have only some of the money as your client will only pay once you have completed the phase of your work. In managing your cash flow, especially since you are starting, you will need to invest in the business to hold fort until the job is done and the client pays.
As you balance the above, you must ensure that your casual workers also show up and do the work. Before starting the project, you must be clear on the core workers for a specific project.
You probably already have core workers you have worked with in the past, and these now become your core team. I suggest you pay these workers monthly or bi-monthly. For the day workers, you should work with the core team and get them to select the casual workers and ensure that they do the work. This way, you are delegating accountability to your core team and making sure they choose their teams for performance.
The suggestion above means that you must clearly communicate, especially when it comes to paying. Remember, your casual workers may be living hand to mouth daily. So, it is essential that you understand this.
You can also negotiate with them to start with, consider weekly pay and as you settle, you could also consider an advance payment to help them get to work and then a system.
Be careful with the advance payment; you may be out of pocket if they do not show. Remember, casual workers should only be with you for six months, otherwise URA will knock on your door for PAYE. Good luck
Managing Director, The Leadership Team (U) [email protected]