Taking on a new technician
Employing your first technician as you can’t keep on top of the amount of work you have coming in is a big move, all that profit that you used to pocket simply isn’t going to be there anymore. It’s a major decision that needs careful thought as it involves considerably more expense than simply paying their salary. A realistic employment cost should include all statutory employment costs, training, equipment, vehicles, insurance, protective clothing and the time required to manage and support the employee. These costs should be considered when calculating the true financial contribution required from a new technician. Even employing another tech shouldn’t be taken lightly though you will no doubt be better advised as to what they actually cost.
Salary and Employment Costs
The salary being offered can vary significantly dependant on experience, qualifications, and location of work. Techs working in and around London will be paid more than technicians working in other areas of the country due to the cost of living in that area. In addition to gross salary, the employer will generally need to budget for employer National Insurance contributions and workplace pension contributions.
Taking on a newbie will incur training costs and lots of your time, this isn’t as bad thing though, in fact I favour this approach and always have.
Holiday entitlement is another significant cost. Employees are entitled to paid annual leave, meaning the business must continue paying the technician while they are away from work and will not normally be generating billable income. The statutory minimum in the UK is 5.6 weeks’ paid holiday per year for a full-time employee. Bank holidays can form part of this entitlement depending on the employment contract (there’s that to sort too).
Sick leave should also be considered. Although the financial impact varies, an employee may be absent while the business still has salary and other employment costs. Abuse of paid sick leave is a big problem, so I’d be careful offering it. If your tech has an accident at work and points their finger at you not proving sufficient training then you may have to pay extended periods of sick pay out.
Vehicle Costs
Unless you are employing a foot technician (London areas mainly) there are the costs of financing a van via direct purchase or leasing. This will add a few hundred pounds a month just on its own. Then there’s insurance, road tax, servicing, MOT costs, repairs, tyres and general maintenance. Fuel and parking costs can also be substantial, if you allow the tech to have use of the vehicle outside of work there is the depreciation to consider too.
PPE, Equipment and Pesticides
The issuing of PPE (RPE, safety footwear, gloves, goggles, coveralls, waterproof clothing, high-visibility clothing and suitable head protection) is a legal requirement so there’s that to account for as is another set of equipment including sprayers, dusters and an assortment of tools for the job. Then there’s the dreaded beard policy…do you have a spare thousand pounds for an ARP? (I’ll let you look that one up).
You’ll have to duplicate another van full of insecticides, rodenticides, bait stations, keys, traps and insect monitors too.
Uniform
Uniform is very important as your new tech is an ambassador for your company and should look the part so costs may include branded polo shirts, shirts, fleece jacket and trousers.
Training and Qualifications
As mentioned earlier training is another major investment when employing a new technician. A new employee will require introductory pest control training, practical experience and industry qualifications before they can work independently. Membership to a CPD scheme is almost a requirement nowadays so there’s that to manage too. I have strong beliefs that if you know your stuff then you should be training your technicians anyway, you can impart your knowledge and experience in a hands-on way, something you can’t do in a classroom, you will need to accompany them on their first visits anyway, checking and reviewing paperwork, providing technical guidance where needed and showing them how to achieve best results.
Remember you have created your business because of you being you, what better start for a technician to further your business, no bad habits or incorrect work practices to stamp out. A new technician will rarely be fully productive in their first few months, it will take time to learn company procedures, become familiar with customers, gain practical experience and develop confidence.
Comms
A mobile phone or tablet may be required for scheduling, customer records, photographs, electronic reporting and communication with the office. Software subscriptions and data costs should therefore be included in the overall employment budget.
Insurance and Compliance
Employing a technician can increase the company’s insurance requirements and premiums. Employers’ liability insurance is particularly important, while additional cover may be required for extra vehicles, tools, equipment and professional activities.
Your business must also account for compliance with relevant health and safety requirements. This can include risk assessments, COSHH assessments, safe systems of work, training records, equipment inspections and appropriate documentation. Having under 5 staff members means you don’t need to produce hard copies of RAMS and COSHH assessments but how would you prove that your new tech had been taught and warned of the potential dangers in his working day whilst carrying out pest control work using harmful substances?
If your new tech was to have an accident, could you be liable? Health and Safety is a serious subject; I made sure I could prove that the technicians I employed were given the relevant training and were protected as much as possible which in turn protected me and the company.
Recruitment
There is a cost associated with finding and recruiting the right person unless you’re very lucky. Advertising, recruitment agency fees, interviews, DBS and right to work checks can all contribute to the initial cost.
Once employed, the technician will require an induction covering company procedures, health and safety, lone working, customer service, vehicle use, equipment, chemicals, reporting and emergency procedures. You will need to spend time supporting your new employee. This supervisory time represents a genuine business cost, even if it does not appear directly on the new technician’s payslip.
Conclusion
The true cost of employing a new pest control technician is therefore significantly higher than their advertised salary, possibly double. A comprehensive calculation should include salary, employer National Insurance, pension contributions, paid holiday, sickness, vehicle purchase or leasing, insurance, fuel, maintenance, PPE, RPE, uniform, equipment, chemicals, training, qualifications, insurance, software, communications, recruitment and management time.
For this reason, you should calculate the true cost before deciding what level of revenue the technician needs to generate. This provides a more accurate basis for setting prices, productivity targets and profit margins, while ensuring that sufficient allowance is made for holidays, training, vehicle downtime, equipment replacement and other unavoidable operating costs.