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  #1  
Old 03-07-2006, 10:08 AM
Patrick Haley's Avatar
Patrick Haley Patrick Haley is offline
 
Join Date: Mar 2004
Location: Northwestern Wisconsin
State: Wisconsin
Professional Status: Certified Residential Appraiser
Posts: 58
Exclamation Employee Appraiser Trouble! Help!

I need a bit of advise or help with my current employee situation.
First a little background. I have an employee who is an actual employee payroll taxes,insurnace,IRA the whole works! Well things have been slower in this market and the high off the hog deal just isn't there any more for her. 1 yr ago I lost my trusty office person of 20+ years to retirement thus we have been doing a bit more office work ourselves. 1 that saved me money as things were slowing and cash flow was becoming a problem. I hired 1 new person and it didn't work out. I think I would have to have a real part timer as of the last few months with only this week picking up in volume. Here is where I really want your opinions.. and I need them FAST!. She currently gets a 50/50 split. I have a storefront small office building on main street. I pay for 1/2 of her insurance,contribute to her IRA,and pay all the advertising,workers comp,yada yada as a regular employee. Since losing our trusty help as I said before we our doing more report work ourself. I have had a part time help in her(My Wife) since last summer full time and then this fall being 3 days a week. Well my employee is demanding a 60/40 split now since she insists she is doing all this office work for free? I am looking at the cash flow and going how? Oh and to add to it I have always carried her for appraisal on payday where I have been paid or not which sounds like not to many people do this? Well please please I need your opinons and help on this front! She is a wonderful appraiser dont get me wrong she is great to work with but we all get defensive when the all mighty dollar is involved. I really dont want to loose her but... I think she may not see the big picture here? I am feeling she may just leave and go on her own soon(good or bad I don't know) Please give me a shout would you help much appreciated!
Thanks Pat,
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  #2  
Old 03-07-2006, 10:18 AM
Robert Dunkle's Avatar
Robert Dunkle Robert Dunkle is offline
 
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Location: Skiatook, Oklahoma
State: Oklahoma
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Default

And your question is....?

If you are asking if you should go to 60/40, that is a business decision you need to make. I do some work for another firm and I get 60/40 as an independent contractor. Would love to do 50/50 as an employee if there are all the bennies you list. However, you must decide if it is worth it to hang on to her for the potential turn around in business.

Just a side note, is the store front office any more expensive than an out of the way office would be. I can't imagine having much "walk-in" business from a retail store front.
  #3  
Old 03-07-2006, 10:22 AM
Patrick Haley's Avatar
Patrick Haley Patrick Haley is offline
 
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Location: Northwestern Wisconsin
State: Wisconsin
Professional Status: Certified Residential Appraiser
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Default

Quote:
Originally Posted by Robert Dunkle
And your question is....?

If you are asking if you should go to 60/40, that is a business decision you need to make. I do some work for another firm and I get 60/40 as an independent contractor. Would love to do 50/50 as an employee if there are all the bennies you list. However, you must decide if it is worth it to hang on to her for the potential turn around in business.

Just a side note, is the store front office any more expensive than an out of the way office would be. I can't imagine having much "walk-in" business from a retail store front.
Thanks for the reply.
I guess I should have asked what other people are doing out there.. I just am thinking that 50/50 with the bennies is a fair split and dont really see the need to go 60/40. Also the store front I kind of inherited. I purchased and existing appraisal company about 6 years ago and she had been here in this little office since approximately 1982 thus I just kept it here.. and purchased the building as well.
  #4  
Old 03-07-2006, 10:36 AM
Smokey Bear's Avatar
Smokey Bear Smokey Bear is offline
 
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Location: The "OC" in Republican Land (Oh no!)
State: California
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Asking for a raise when work is slow? Has she ever heard of downsizing? When you survive downsizing, you get more work for the same pay. That's the way it is. Can she really get a better deal somewhere else?
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  #5  
Old 03-07-2006, 10:41 AM
xm72mhd xm72mhd is offline
 
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State: Florida
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Quote:
Originally Posted by Patrick Haley
Thanks for the reply.
I guess I should have asked what other people are doing out there.. I just am thinking that 50/50 with the bennies is a fair split and dont really see the need to go 60/40. Also the store front I kind of inherited. I purchased and existing appraisal company about 6 years ago and she had been here in this little office since approximately 1982 thus I just kept it here.. and purchased the building as well.
At the levels you are talking about both splits could be fair, but what would get me going is the control this person is seeking. What are you doing, retiring? 1982, you guys are connected at the hip by now! Do you know how long that is? Some people don't stay married that long.

It's your call and only you can make it. You'll find support for either decision. Why don't you pay her hourly for office work and keep the split where you are comfortable?

Time to make her a little less independent IMO. That's a tuff, tuff direction to go and she'll probably kill you. Sounds like you've got one of those co-dependent thingys going. Put everything on the table. You could do the office work and take 60%. Or you could just cut her loose. The trap is in your head, you're not really in it. Put this on paper and let the bottom line control, or write a business plan and see what fits. USPAP doesn't have a lot to say about this. Like nothing. LOL
  #6  
Old 03-07-2006, 10:49 AM
Patrick Haley's Avatar
Patrick Haley Patrick Haley is offline
 
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State: Wisconsin
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Default Better Deal Somewhere else..

Quote:
Originally Posted by Cynthia Hamilton
Asking for a raise when work is slow? Has she ever heard of downsizing? When you survive downsizing, you get more work for the same pay. That's the way it is. Can she really get a better deal somewhere else?
Thanks Cynthia,

No she can't everyone I have talked to said.. good luck for her and can I come work for you! Also her apparent idea of office work is working on report. IE searching for prior sales,lookin in the file cabinet to see if we have dont it prior,mls searching, ****es me off the more I talk about it... aaaahhhhh..
  #7  
Old 03-07-2006, 10:50 AM
Patrick Haley's Avatar
Patrick Haley Patrick Haley is offline
 
Join Date: Mar 2004
Location: Northwestern Wisconsin
State: Wisconsin
Professional Status: Certified Residential Appraiser
Posts: 58
Default

Edd,
Thanks for the reply as well.. no she I hired her after the lady that started the company from back in '82 was going to retire.. I hired this employee in 2001 so we have been here awhile. Like I replied to Cythia.. its starting to really get to me!

Pat,
  #8  
Old 03-07-2006, 10:52 AM
George Hatch's Avatar
George Hatch George Hatch is offline
 
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Location: Carlsbad, California
State: California
Professional Status: Certified General Appraiser
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You might be better off going co-op on this. Let her have the entire fee, less a desk fee to cover her share of the overhead (with or without administrative support) and an origination fee for each deal you generate for her. You'll have that much less paperwork to do and you won't carry the accounts receivables on your back like you have been. Employee overhead is a killer, and it's even less worth the hassle when there's only one employee.

You may not come out ahead (although I think you will), but you'll definitely have less stress. That's gotta be worth something.
  #9  
Old 03-07-2006, 10:57 AM
Patrick Haley's Avatar
Patrick Haley Patrick Haley is offline
 
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Location: Northwestern Wisconsin
State: Wisconsin
Professional Status: Certified Residential Appraiser
Posts: 58
Default Desk Fee Very Interesting!

Quote:
Originally Posted by George Hatch
You might be better off going co-op on this. Let her have the entire fee, less a desk fee to cover her share of the overhead (with or without administrative support) and an origination fee for each deal you generate for her. You'll have that much less paperwork to do and you won't carry the accounts receivables on your back like you have been. Employee overhead is a killer, and it's even less worth the hassle when there's only one employee.

You may not come out ahead (although I think you will), but you'll definitely have less stress. That's gotta be worth something.
George,
Thanks there is something I hadn't thought of.. Her and I had that discussion and few weeks ago when this came up and I did a few call to others. I appraiser I talked to said when she worked for a larger company she got 40% and had to pay for lots of her own stuff no bennies and bring in her own clients. I mentioned this to my employee and she thats just a cop out that she don't think is legitimate?
Any thoughts on Desk Fee? I would most likely have to try and go Independant Contractor? Anyone else doing anything like this? This would save me on Fica/Med/SSI/Unemployment etc.

Pat,
  #10  
Old 03-07-2006, 11:01 AM
CANative's Avatar
CANative CANative is online now
 
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Tell her about the slowdown in business and you've also been thinking about the fee split and decided that 40/60 would be best. You can then negotiate a compromise between the range.. say 50/50.
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