Know the true cost of landscaping labor

By the fifth year, research suggests that nearly half of new businesses fail. By Year 10, only about 30% remain. While these numbers shift with changing market conditions, the lesson is clear: Understanding why businesses stumble is the first step to ensuring yours doesn’t.

Usually, the problem seasonal companies in the landscaping industry struggle with isn’t lack of work. It’s a lack of strategy around resources and spending — in particular, labor — and knowing its real cost is key to protecting profitability. For both sunbelt and snowbelt companies, when landscaping labor is managed with a plan — crews sized correctly, hours tracked and seasonal shifts anticipated — you’re not just surviving seasonal swings, you’re using them to your advantage.

For example, sunbelt companies — landscape firms in regions with mild weather — can schedule and budget labor costs more predictably year-round. But as autumn approaches and plant growth slows, the transition creates a natural opportunity to make smarter use of your crews. Instead of laying off staff abruptly, avoid replacing seasonal employees who leave beginning in September. This naturally reduces headcount and minimizes the need for layoffs later. If you find yourself short-handed, using overtime selectively can often be more cost effective.

Some companies also opt to reduce hours — moving to four-day workweeks, seven-hour shifts or even holiday hiatuses. These alternatives are increasingly common, and, in many markets, employees have come to expect them.

In the spring, the question is always, “When do we gear up?” The longer you can delay crew expansion, the less labor you’ll consume through the long, hot summer. Careful scheduling is critical — avoid overlapping non-routine tasks like planting, mulching and pruning, or you’ll see landscaping labor costs spiral.

For landscape maintenance firms located in the snow belt, managing seasonal labor is more complex, with three transition periods: fall, spring, and mid-summer. Once snow and ice arrive, maintenance work halts — and because weather is unpredictable, cutting crews too early and you risk being short on trained, experienced workers when snow removal services ramp up. Don’t rush to scale up crews too quickly — overlapping non-routine tasks with unpredictable weather can lead to higher costs and missed service.

When workloads dip in July and August, use it as a chance to fine-tune labor. Avoid mass layoffs, which make September rehiring more difficult. Instead, stretch your dollars with reduced hours or flexible options.

Managing seasonal labor is a balancing act that requires planning, timing and experience. Companies that prepare for the unexpected with contingency plans for emergencies and weather events protect profitability. Those that don’t, can often watch their margins disappear in the form of costly overtime.

Eight ways to control landscaping labor costs:

1. Hold off on spring crew expansion. The longer you wait, the less labor you’ll consume through summer.
2. Don’t replace fall departures. Let attrition naturally reduce headcount instead of resorting to layoffs.
3. Use overtime strategically. In many cases, it’s more cost-effective than keeping extra staff.
4. Be cautious with fall layoffs in snow belt markets. Cutting too deeply can leave you short-handed for winter storms.
5. Plan seasonal transitions. Without a plan, profits often disappear into overtime.
6. Reduce hours before cutting jobs. Flexible schedules preserve talent while controlling costs.
7. Stagger non-routine tasks. Prevent overlap of planting, mulching and pruning to keep labor efficient.
8. Delay spring hiring. Expand only when workload truly demands it.

A strong seasonal transition strategy hinges on three things: clear communication between leadership and field managers, a disciplined follow-through and a proactive push on enhancements to boost both customer satisfaction and year-end profitability. The key is flexibility — moving crews into enhancement projects when demand is high, then shifting them back into maintenance as the workload changes. Done well, this keeps labor productive, customers happy and margins protected.

Words of Wilson features a rotating panel of consultants from Wilson360, a landscape consulting firm. Bruce Wilson is founder and chairman of Wilson360 (formerly Bruce Wilson & Co.) He can be reached at bruce@wilson-360.com