I need to hire my first sales associate for my new bakery. I'm curious what salary you guys are giving your employees.

The salary for working at the mall is $7-10/hr, but this job is a little more complicated. In addition to just taking money and greeting customers, the sales associate needs to discuss decorating options and estimate the price to charge (I have a chart for certain decorations, but as you all know, there's a thousand variations! I do the wedding tastings myself, but every birthday cake is unique too.) So, it's going to take someone more advanced than the average sales job. I think of it like a catering director or something, but they make $25,000/yr and up (my little operation can't afford that!).

Any thoughts?

$25,000/yr = $12.50/hr at 40 hrs/wk for 50 wks (and 2 wks unpaid vacation)....

so that's not far off from the top end of the mall.

$10/yr = $20K/yr. under same conditions

are you looking for full time? part time?

might a retiree (or 2) who need to supplement income and already have insurance, etc. as well as a limit on the amount they can earn be an option.

what are the health/workman's comp. insurance requirements in TX and Houston? (that can add considerably to the expense.

and don't forget...you have to contribute to their FICA and MEDI, which ups the cost even more.

are you required to provide health insurance?
paid time off?

a retiree (or 2) just might be the best option at this point.

What a great idea! I never thought of a retired person, but it makes sense. I need someone full-time so I can stay in back and cook all day (I'm the only baker). I'm hoping $7-8/hr is enough (with no paid vacation--I don't think that's required).

I feel bad that I can't offer a great salary (is that weird to feel guilty?), but I just have a very limited budget and, like you said, the hidden costs really make any salary ALOT more than its original number. I have to carry workman's comp, but I'm not going to offer health insurance. I always think it would be the perfect job for a bored housewife who loves learning about cake decorating and gift-wrapping but doesn't need a high salary or health insurance. I think it's a fun job, you get to talk to customers and cute kids and you get to learn the tricks of the trade without the stress of actually decorating . . . I'm kind of jealous--I'm in the back, sweating, hurrying, and worrying about the finances.

Keep the comments coming . . .

here's a little spreadsheet that runs a few numbers for you.

remember these are just estimates and would need to be verified by your accountant.

and they do NOT include workmans comp (oh what a mess that is!)

remember, you need full time help but it doesn't have to be one person -- could be two working 1/2 time each or even three!! -- are you open saturdays -- and in most places anything past 20 hrs qualifies as full time so keeping it under that helps in all kinds of ways. two reitred people, AM shift and PM shift, plus another for Sat. only could work just as easily and be easier for you to find.

the amounts aren't large, but for a retired person probably are good enough.

Everyone keeps mentioning 2 people--What's the advantage to 2 PT employees vs. 1 FT employee if I'm paying the same wages?

Then I have to train 2 people and make a schedule. Isn't the workman's comp more for 2 people?

workmans comp in TX is a percentage per $100 paid...so if two or three...instead of one, still the same amount as if paying only one what the 2 or 3 are splitting.

remember...college students have classes you'd have to work around

and retired folk may only want to work a 1/2 day not a full day -- after all, they are retired. This for them will be more like your "bored housewifes" relief from boredom.

and even a housewife isn't going to necessiarily want to put in a full 40 hrs, especially if children are still at home

yes more training w/ two or even three...but far more flexibility for both you and the employees....

not mention -- all your eggs are not in one basket should that 1 employee call in sick. with two or three they can cover for each other.

Sweetchef: I personally think it would be great if you could find someone who was interested in the cake decorating business...maybe someone who's just starting out or is really excited about this line of work.

I've had a coffee shop for about 7 years now and I've hired a few people that were truly interested in the business who eventually wanted to start their own & I found those were the best workers. Maybe if you take an ad out for help you can put in there for anyone interested in cake decorating,etc or find someone that knows a little about the business so you wouldn't have to spend as much time training.

As for the salary, I only pay $8.00/hour also....they get to keep any tips they make, food & drinks are free during work & for those who were in school if there was slow periods throughout the day they had a quiet place to study for a little bit. I find that sometimes people stick around not so much for the money, but to have a nice place to work everyday.

Good luck in finding someone

just be careful. you really can't set out trying to offer the job to a retiree, or a "bored housewife" because you could (unintentially, obviously) violate EEO laws. Meaning you should look at everyone who applies equally, and not give favor based on age, gender, familial status,etc etc etc.

and there are a bunch of really great suggestions already - having 2 part-time instead of full time, for example (helps minimize you having to pay overtime), especially since you aren't offering benefits anyway.

The only thing I can offer is to make sure that you pay them the salary you can afford to! How much is the employee worth? And then how much of that needs to be taken out for workman's comp, unemployment, taxes, etc. If the employee is really going to benefit you b/c you will be able to make more money and afford the employee - then go for it. Otherwise, you may just be losing money by hiring someone. It's a tough situation. Employees can kill a business even though they take over some of the "grunt" work. All the costs add up. And if the employee isn't helping to bring in more orders, then are you really benefitting at all?

I do agree that more than one may be a good idea - but I might try to find just one first. Look into how much you may pay on the extra people for unemployment, workman's comp, etc. and see if it is beneficial to have more than one employee or if it will be more expensive.

I don't have my own bakery or employees, but I worked in a start-up company and I know that the owner had a tough time w/ employees simply b/c of the cost (and b/c we had trouble finding reliable people for the amount we could pay them). I agree that college students may be a good idea or even high-schoolers for after-school b/c they don't always expect to be paid as much or receive benefits.

Good luck!

The only thing I can offer is to make sure that you pay them the salary you can afford to! How much is the employee worth? And then how much of that needs to be taken out for workman's comp, unemployment, taxes, etc. If the employee is really going to benefit you b/c you will be able to make more money and afford the employee - then go for it. Otherwise, you may just be losing money by hiring someone. It's a tough situation. Employees can kill a business even though they take over some of the "grunt" work. All the costs add up. And if the employee isn't helping to bring in more orders, then are you really benefitting at all?

I do agree that more than one may be a good idea - but I might try to find just one first. Look into how much you may pay on the extra people for unemployment, workman's comp, etc. and see if it is beneficial to have more than one employee or if it will be more expensive.

I don't have my own bakery or employees, but I worked in a start-up company and I know that the owner had a tough time w/ employees simply b/c of the cost (and b/c we had trouble finding reliable people for the amount we could pay them). I agree that college students may be a good idea or even high-schoolers for after-school b/c they don't always expect to be paid as much or receive benefits.

Good luck!