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If an employee is set as a labour resource, rates of pay (such as overtime) can be configured in the Labour Rates tab. Labour Rates can also be set for Cost Types (such as Drivers), which will apply to all employees of that Type. Labour Rates set for individual employees will override Cost Types. These rates are used to calculate estimated and actual labour costs of doing a job.
How to Set Labour Rates for a Cost Type
- Navigate to the Employee Management module and toggle Costing Items to Y.
- Navigate to the Labour Rates tab. The top half of the screen is used for Cost Rates, while the bottom half is for Sell Rates.
- Click the Add button next to either the Cost or Sell Rates to add a new rate.
- A rate can be configured to only apply for specific situations that you see listed in the row below:
This means that you can have a Cost or Sell rate that apply:
- Only for a specific branch
- Only for a specific move type (EXP, IMP, LOC, etc)
- Only for a specific day of the week
Double click the Calc field on the left to view the different options for calculating Rates:
As mentioned above, the LV (Labour Variable Hourly Rate) is most commonly used, as it enables the rate matrix on the right side of the screen:
The Variable Rate Matrix can be used to specify pay rate intervals. In the above screenshot, a pay rate of 20 will be used for up to eight hours, 30 for between 8-10 hours, and 40 for any hours above 10.
With a rate set against a Cost Type, any employees used in that cost type will have these rates used when they are assigned to Jobs. If crew are added to multiple Cost Types because they can perform multiple roles on a Job, whichever role they do on that day is the rate that will apply.
Often companies will prefer to set Labour rates up as an average cost for a Cost Type, rather than the exact hourly cost of the employee, for the purpose of keeping employee wages confidential.
How to Set Labour Rates for an Individual Employee
- Navigate to the Employee Management module and select the required employee in the Search tab.
- Ensure the Employee is set up as a Labour employee by confirming the Labour field on the Details tab is set to Y.
- Navigate to the Labour Rates tab and follow the same steps as mentioned above when adding Rates for Cost Types.
Labour Rates set for individual employees will override the rates set against a Cost Type.