Staffing Query!!

Staffing Query!!

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Hello there!

I started to use the services of a sub-contractor around 5 months ago.  This was a really big step for me having worked really hard to build up my practice over the last 3 ½ years which now has over 125 clients.  The lady approached me at a time I was considering getting some help and has 15 years practice experience doing bookkeeping and payroll but was also reasonably priced.  Starting to have “buy cheap, buy twice” ringing in my head!!

I gave her a basic cash accounting VAT on Excel to do which I can do in around 2 hours.  Having just completed it for the 3rd quarter she is still taking 5 ½ hours and I am finding it increasingly difficult to sit and watch someone be so painfully slow.  I wouldn’t mind so much if it took her 3-3 ½ hours but 5 ½ …..??!!

Every bit of work I give her I always thoroughly go over how it should be done and ask if there is anything she doesn’t understand, I don’t know how else to help her speed up.  She is lovely but takes so long to do anything.  I am a “grafter” and expect anyone I pay to do a job to be the same(ish), am I being unrealistic/ unreasonable? 

I feel I have 2 options, either tell her I don’t have any further work for her or agree with her a percentage of the fee then it’s down to her to make it pay.

Does anyone in practice have a guide as to how they calculate what a “profit” should be/ they would like it to be, based on what they are paying a worker on a job?  Is it 3 times the cost or similar (i.e. pay sub-contractor £10ph/ charge client £30ph)?

How have you chosen to proceed when your business has grown to the point where you realise you can’t do everything yourself and still have a life?  Have you used a sub-contractor or taken the plunge and actually employed someone?  How have you got on and would you do anything differently.

Thanks for your advice!

Replies (13)

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By andy.partridge
24th Sep 2013 14:58

Don't suffer in silence

Is she slow because she is conscientious or because she is . . . just slow?

Do you give her any indication of how long a piece of work should take in advance of her starting it? It might help her get her bearings.

I have gone the part-time employee route. Mine takes a much greater interest in the work, the clients and the business. After all, they have a stake in it. There are plenty of professional women (and some men) looking for work that fits in around school hours.

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Replying to Red Leader:
Woof
By Doris
24th Sep 2013 15:26

Thanks for your reply Andy

 

Yes, I do give her a time it should take, I say how long it takes me to do and how long I’d expect it to take her, taking into account if it’s a job she hasn’t seen before.

 

She is fairly accurate although I have pointed out a couple of silly mistakes to her, we’re all human though, everyone makes mistakes, I appreciate that.

 

I feel as though I’m bending over backwards to assist her and help her speed up which is taking me away from my work.  I think she is generally a “slow” person and I’m banging my head against a brick wall but I guess it’s all a learning curve.

 

I’m seriously considering the part-time employee route.  I have another sub-contractor who is still learning really, lacks experience, but I think has got what it takes although she keeps letting me down at the last minute which is no good to me or my company.

 

I agree with what you say, I think an employee would care more about the clients and the business which is what I want.

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By Ding Dong
24th Sep 2013 15:24

unfortunately

that is the case - ie they are slower.

I have no subcontractors working for me but I have passed bookkeeping work to local bookkeepers (who are engaged by the client directly) to do as I told the client that paying me £75 per hour to do bookkeeping (yes 1 rate for all work irrespective of complexity) was not cost effective.

Unfortunately in some cases the bookkeepers charging £15 or £20 per hour were taking 3/4/5 hours to do what I was doing in one hour so the client in some cases paid more as I was then having to correct/review and alter sometimes.

Very annoying

So I guess what I am saying is you will have to accept that some (not all) bookkeepers are slow(er) and that is why they are happy bookkeeping and not running a practice as you are.

Good luck!

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Woof
By Doris
24th Sep 2013 15:42

Thanks Ding Dong (love the name and the picture!!)

 

I’m happy to pay a decent rate if the work is done in a decent amount of time and is done well.  5 ½ hours on a 2 hour job though, I mean, come on…….

 

So, if your bookkeepers were charging £15-£20 per hour, how much would you then charge the client…….?

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Replying to Barry Adams:
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By Ding Dong
24th Sep 2013 15:46

i let the bookkeepers charge the client

I step out of the loop - I prefer it that way!

I will say though, you might get away with doubling it .......

 

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By User deleted
24th Sep 2013 16:09

Depends

If you're happy with the eventual quality of the work (i.e. you don't have to spend ages checking it and making corrections) then I'd go down the fixed % route. Otherwise say goodbye and find someone better.

I think it's normally around a third of the fee but don't quote me as I don't use subbies or employees - I'm too much of a perfectionist. I'd rather stay small than employ!

 

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By User deleted
24th Sep 2013 16:10

Where are you based?

Someone on AWeb might know someone decent...

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By Tosie
24th Sep 2013 16:11

Age

She may have been used to bookkeeping packages as opposed to  Excel hence the slowness.

As a general rule I would not employ a sub contractor on an hourly rate.

Part time staff  are more prepared to to other jobs as well as book-keeping answering phone, filing scanning etc so can be more help in a small office.

I agree that it is better to pass the charging out to the book-keeper otherwise divide by 3.

Big problem you have at present is how much to charge client if she is taking five times longer than you think she should. She might end up earning 0.50 a hour.

It is so hard to know how to choose staff at this stage of practice development.

good luck

 

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Woof
By Doris
24th Sep 2013 16:31

Thank you for your replies so far, all of which are really helpful.

 

Flash Gordon – I’m based in Leicestershire.  Seriously considering having a part-time employee though rather than sub-contractor now.  I think I need someone I can rely on who is competent and has a bit more about them.  Yes, I thought it was around a third of the fee.

 

Tosie – She is competent in Excel and says she has worked with various different software.  That’s just it, isn’t it, there is no way I can increase the client’s fee that much because of how long she takes, it would be a considerable jump and I’d lose the client!

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Glenn Martin
By Glenn Martin
24th Sep 2013 20:22

What about an apprentice
Go on give a kid a chance and try an apprentice. There is loads of government support for training and the starting rate is only £2.65 per hour. You will some kids have great IT skills and would be great knocking up spreadsheets and data entry with a bit if time you could be onto a winner.

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By Jason Dormer
24th Sep 2013 20:47

Glennzy

I second that, eager to learn, willing to adapt, haven't learned anyone else's bad habits, not to mention cheap!  Take on in conjunction with their AAT studies and watch them grow (with you).

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By User deleted
24th Sep 2013 21:16

Disadvantages ...

... of apprentices.

(BTW rate goes up to £2.68 in a couple of weeks!)

I have thought of an apprentice, even had an intern over his university vacation last year.

Problem is, £100 pw is reasonable, but was probably costing me £500+/week in fees I didn't get out, or had to work stupid hours to get fees out as I was spending half my day showing / explaining / reviewing etc. This will continue for some months until they can work unaided and I don't have slack for that. It will also be some months before you can get them to a point to deal with taking phone calls etc.

Also, depends on you - I am a do-er, not a show-er, I am not good at explaining what it obvious to me and I get impatient and crotchety when they don't grasp it.

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By MJ Green Accountancy
24th Sep 2013 23:07

I'm also in favour of the apprentice route.

 

I took one on in January 2012 and he's gone from strength to strength. I phoned the local college and asked them if they had anyone suitable. They gave me a list of potential candidates and I selected four to interview.

 

My practice is relatively new and with the workload I was able to shift, I had ample time to spend training him. The rewards are paying off and the work he is producing now is far better than the part time employee with several years experience that he replaced.

 

My practice is continuing to grow and the plan is to take on another apprentice in the future when the workload warrants it. With a second apprentice the risk of being swamped with work should one leave will effectively be reduced. the plan is that the first apprentice will also assist with the training of the second. 

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