How Should Trainees Affect Installation Labor Efficiency?
A Contractor University Member recently utilized the Ask-The-Expert Q&A feature within the member dashboard by submitting the following question and received the response below.
Contractor Question:
“When a trainee is working alongside an experienced crew and their wages are charged directly to the job, what percentage should we use as a reasonable labor target?”
Contractor University Expert Response:
“If your normal installation labor target is 9%, it may not be realistic to hold a crew with a trainee to the same standard. When a trainee’s wages are included as direct job labor, the labor percentage should account for both productive installation work and the time being invested in employee development. As a general guideline:
- Experienced crew with no trainee: 8%–10%
- Experienced crew with an advanced trainee/helper: 10%–12%
- Experienced crew with a developing trainee: 11%–13%
- Experienced crew with a brand-new trainee: 12%–14%
For a crew working with a true trainee, 12% is a reasonable starting target. Compared with a normal 9% labor KPI, this provides roughly a 33% allowance for the additional training expense. For example, on a $15,000 installation:
- Labor budget at 9%: $1,350
- Labor budget at 12% with a trainee: $1,800
- Additional training allowance: $450
That additional labor allowance does not mean the crew should automatically spend more. It simply recognizes that the job is supporting two objectives at once: completing the installation efficiently and developing a new employee.
Start by tracking trainee jobs against the 12% benchmark for 60–90 days. If those jobs consistently fall within a different range, you can adjust the target based on your company’s actual performance.
Long term, consider separating training labor from direct installation labor on your profit and loss statement. Doing so can provide a clearer view of installation gross margin, crew efficiency and the true investment your company is making in developing its workforce.”
Contractor University members can click here to log in to their member dashboard and submit a question through the Ask the Expert portal.
