Running a successful small business requires thorough financial plans. One of the biggest expenses for businesses is payroll. Deciding how much to pay employees is crucial to the financial stability of your company and employee retention.
Pest control techs work hard and deserve a decent salary. The cost of living in the US is increasing, and it can be difficult to make ends meet. This affects both workers and businesses. So, how do you find the balance between fair pay and managing business expenses?
This article will help you determine a fair rate to offer new hires. We’ll explore things like average market rates, the cost of benefits, and how to negotiate pay with employees. With these tips, you can feel more confident in setting fair wages for pest control techs.
Understanding the Market Rate for Pest Control Technicians
On average, payroll costs between 15-30% of total business revenue. Navigating the line between maintaining a profit margin and paying fair wages can be tricky.
Understanding the market rate for pest techs will help you manage expenses. This can give business owners a well-rounded understanding of fair wages. A decent wage should compensate for employee expectations, cost of living, and market rates.
Here are a few tips on how to understand the average market rates for pest techs:
Online Salary Surveys
You can often find salary averages through online surveys. Sites like Glassdoor, Indeed Salary, and Salary.com offer comprehensive data in most industries. They have details about salaries, hourly wages, and revenue.
These sites offer both businesses and employees tips on fair wages.
Industry Reports
Industry organizations often release annual reports of average pay scales. The National Pest Management Association (NPMA) and the U.S. Bureau of Labor Statistics (BLS) are both trustworthy places to find these reports.
The BLS released a report stating the median pay for pest control techs in 2023 was $43,470 per year and $20.90 per hour.
Job Listings
You can compare pay rates with other similar job listings. Research different job opportunities in the industry so you can get a sense of what is out there. This way, you know that what you’re offering is on par with competitive positions.
Networking
Connect with other industry professionals. This is a great way to get insight into different pay scales. You can also use this to compare other pay structures, such as whether competitors are paying salary versus hourly.
Employee Feedback
Employee feedback is an essential tool for the success of your business. You can conduct yearly or quarterly surveys or interviews to see how they feel about their compensation. This can help keep your team satisfied and help you stay on top of salary trends.
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The Impact of Experience Level of Pest Control Tech Pay
Hiring employees isn’t always a “one size fits all” situation. Some employees will be hired for their motivation and passion, while others will be hired for their skills. Since experience ranges vastly, it’s important to come up with a system for creating a pay scale.
Here are a few steps to take to help you establish your company pay scale:
Define Experience Levels
Having a clear definition of experience level will help you clearly categorize employees. Employees can then be paid according to their experience level and what they bring to the table.
Typically, entry-level employees have 0-2 years of experience. Employees with 3-5 years of experience will be considered mid-level. Senior level would be anything over 6+ years.
You can adjust this scale according to various factors or ranges. You can define skills and knowledge base within that will match their pay.
Incorporate Certifications
Certifications are valuable in the pest control industry. Employees with credentials like a pest management certification can benefit your company in many ways.
Business owners should consider offering pre-determined pay increases for credentials. That means that for each certification or license, the employee is being compensated for their value.
Evaluate Skills and Specializations
Consider what skills and specialization you’re looking for in an employee. Pest control techs can specialize in things like pesticide familiarity, fumigation control, and wildlife management.
Knowing what you need from your employees will help you determine wages. You can also consider offering additional pay or bonuses for employees with specialized skill sets.
Implement Performance Reviews
Business owners and managers may want to implement performance reviews. These should consider experience, skills, and achievements within the company. These evaluations can then provide insight into whether an employee’s wages match their performance.
Hourly vs. Salary: Which Compensation Model Is Best?
Whether you pay your employees a salary or by the hour is up to your business model. You may consider factors like seasonal variability, budget constraints, and team size. There can be flexibility depending on what your business needs.
Let’s look at some of the pros and cons of offering hourly wages versus a fixed salary.
Pros of Paying Hourly Wages:
Flexibility
Hourly wages are flexible for both employees and businesses. This gives room for busier/slower seasons and schedule adaptability.
Tracking hours/performance
Allows a clearer sense of hours spent on the job and better insight into employee performance.
Great for entry-level techs
Hourly wages are great for hiring entry-level workers. It may appeal more to those looking for part-time and flexible positions.
Cons of Paying Hourly Wages:
Complex management
Tracking employee hours can be more difficult to manage on the backend, especially for a team of field workers.
Lower commitment from employees
Paying by the hour may lead to inconsistent income and less investment in the company. This can lead to higher turnover rates.
Pros of Paying Salaried Wages:
Reliable Income
Reliable income and stable working hours can attract more loyal workers. They may be more satisfied with the job and more invested in the success of the company.
Attracts experienced workers
A salaried position may bring in more experienced applicants. Salaried positions often provide stability and a more defined career path.
Simplified payroll
Set and stable wages every month make management a lot easier. Payroll will be simplified and much easier to manage each month.
Cons of Paying Salaried Wages:
Fixed costs and less flexibility
Fixed pay rates don’t leave room for slow seasons. This means you’ll have to pay employees the same regardless of how busy the company is.
Higher performance demand
A salary may demand more from your employees. While this may mean more loyalty to the company, it may also create dissatisfaction. Salaries can sometimes demand too much from hard workers.
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Adding Benefits and Perks to Pest Control Tech Pay
In a demanding economy, base pay rates are often not enough to bring in skilled workers. Pest control businesses should consider offering benefits to new employees. This incentivizes workers and can create company loyalty.
Benefits should cover things like health insurance, paid time off, and retirement plans. Many workers are looking for stability and work-life balance. Offering support and benefits in those areas may attract more skilled and hard-working employees.
Incentive-Based Pay for Pest Control Technicians
Offering payment incentives can motivate professional growth. This benefits the employee, who gets to build their skills and earn more. It also benefits the company, which can use this to align business goals and enhance services.
Your company can offer various incentives to earn pay increases. Incentives could be anything. Consider things like certification acquisition, referral or performance bonuses, or any development courses. You can offer higher pay as certification and experience are gained and based on customer reviews of their services.
There are many directions to go with incentive-based pay increases. Pick something that aligns with your company goals and values. Whatever you choose, it should benefit both you and your employees.
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Consider the Cost of Living in Your Area
The location of your pest control company will affect the rates you offer. The cost of living differs greatly across the US, and wages should always reflect this.
Typically, the higher the cost of living, the more customers will pay for your services. Compensation should reflect this as well. The cost of living impacts your employees, too, and they deserve a livable wage to help you provide high-quality services.
Do some research on the cost of living in your area and try to set a pay scale that reflects this.
Negotiating Pay with New Pest Control Hires
The hiring process can get messy if you don’t have set parameters for your budget. When negotiating pay with new hires, you should aim to meet the candidate’s expectations while staying within your price range.
Here are a few tips for negotiating fair pay:
Set an Initial Offer
Have pre-determined initial offers for each employee based on experience level. This will set expectations early and give you a baseline to start negotiations.
Determine Your Budget Range
Set the highest offer that you could comfortably pay the candidate. This gives you parameters to negotiate and ensures that you won’t go out of your budget.
Consider Non-Salary Items
Include non-salary-based considerations in your negotiations. Mention things like bonuses, time off, and any benefit packages. This may incentivize candidates to accept a lower pay rate.
Don’t Discuss Competitor Salaries
Keep the discussion on what your company has to offer. This keeps the conversation based on what they can earn with your company rather than bringing in other numbers.
Be Flexible
If an employee wants to negotiate the pay rate, be prepared to be flexible. Know your budget’s minimum and maximum. In negotiations, attempt to land somewhere in the middle.
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Next Steps for Setting Pest Control Tech Pay
With all of that in mind, determining what you’re going to pay is specific to each business. Factors like revenue, location, competition, and state regulations will affect the rates that you offer.
Here are a few steps that you can take right now to decide how much you want to offer new employees:
Research Labor Laws
This should be your absolute bare minimum pay scale. Labor laws in each state vary, and you should use this as the very bottom of what you’ll offer.
Know What You’re Looking For
Create a list of skills and traits that you’re looking for in an employee. Most candidates won’t meet all the requirements. However, this can help you narrow down the skills that matter to you.
Full-Time Versus Part-Time
Determine if you can afford to hire full-time or part-time. This will help you determine how you want to pay your employees and what type of candidate to target. Full-time employees often require higher wage ranges than part-time candidates.
Establish Pay Scale
Once you’ve determined the skillsets you need, whether you’re paying hourly or salary, you can establish your pay scale.
Experience level, certifications, location consideration, and all the other details that we’ve discussed should impact this. A pay scale will help you determine what to offer each employee, depending on how they meet these categories.
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