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Hiring Employees and Venture Viability Presentation – NOFA-NJ Winter Conference 2016

February 2nd, 2016 | Posted by miker in Events and Workshops

How To Hire and Keep Good Employees

NOFA-NJ Winter Conference 2016

Mike Rassweiler – NorthSlopeFarm.com

(Below are the Slides from the Presentation, offered for reference and as sample of the presentation…)

Links and References

 The Employee, defined by the IRS

  • Someone who does work for you (the employer).
  • Someone who follows your directions and instructions.
  • Someone who uses your tools, machines and facilities.

Experienced Worker vs Untrained Worker

Describe the Worker you Seek

Draft the expected Wages and Benefits you will Provide

Wage Rate commitment at North Slope Farm for 2016

  • First Years: $9 / hr
  • Second Years: $11 / hr
  • Third Years : $12 / hr
  • Experienced and Committed Workers : $13 / Hr

Our schedule assumes a 40 hour work week,

Over a season from March through November ( 41 weeks )

Maximum expected wages for 2016: $90,700 + employer taxes (+/- $8,500)

  • 2 First Years: $29,500
  • 1 Second Year: $18,000
  • 1 Third Year (24 weeks): $11,500
  • 1 Worker (full time): $21,200
  • 1 Worker (part time): $10,500

If everyone works full time, to achieve a 40% payroll ratio,

Our Gross Income Goal will need to be $300,000 +/-

  

Venture Viability Calculations

Calculating Required Gross Income to meet Wage Demands assuming goal of 40% of Income in Wages

( Expected Wages X 1.5 ) + Expected Wages = Gross Income Goal

So , for example, assume; a worker at $9 / hr X 40 hrs X 32 weeks (April-Nov) = $11,520

Then assume you’ll need; 2 workers = $23,040

($23,040 X 1.5) + $23,040 = $57,600 estimated Gross Income for a Venture that will hire two Seasonal Workers,

So, $57,600 (Gross) – $23,040 (wages) = $34,560 will be the remainder for operations and profit…

Assuming Production over 6 months (+/- 24 weeks) = $2,400 sales per week, required…

Other factors to consider: Potential Yield per acre & Number of Workers required (per acre)

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