Should Staff Be Paid by the Hour?
I’ve been having a lot of conversations with clients about how to structure pay for non-billable office staff – especially project managers and operations managers in trades and manufacturing businesses. A common question that keeps coming up is: Should these staff be paid by the hour?
I’ve seen a pattern, especially with team members who’ve moved off the tools and into the office. Some of them come in with a bit of a clock watching mindset – they’re used to being paid hourly and working to rigid schedules. But once they’re in a leadership or coordination role, things need to shift.
In my view, these roles should be based around fixed hours, say 8:30 to 5:00, but with a clear understanding that there needs to be some give and take. Maybe they’ll stay back late to finish a project, drive back from an interstate site, or set up jobs for the next day. On the flip side, they might pop out to a dentist appointment or need some flexibility from time to time. That’s all part of it.
What’s most important is that they understand their role is no longer about punching the clock. It’s about managing their own time and being focused on results and completion. The job is to get things done whether it’s submitting a tender, finalising a schedule, or making sure the team has what they need to hit the ground running.
But here’s the key: this needs to be communicated right from the start. When you’re hiring, when you’re onboarding, and through everyday conversations. Talk about expectations, reinforce the idea of ownership, and most importantly lead by example.
When this kind of culture is set up well, it works beautifully. But if it’s left unclear or assumed, that’s when issues creep in.
If you want support with setting up these expectations and building a results focused culture in your business, reach out. I’m always happy to help.
Hugh Bowman
Business Consulting for Tradies