Getting worker compensation right isn’t simple math.

Pay too little, and you’ll watch qualified workers walk away to competitors. This hits particularly hard when you’re trying to attract certified arborists who’ve invested time completing ISA training. Pay too much without smart pricing strategies? Your profit margins disappear faster than leaves in fall.

It brings us to the real question: how do you balance fair compensation with tree care and landscaping business survival?

Let’s break down the real numbers behind tree worker pay, and show you exactly how successful companies structure their compensation to attract talent while boosting their business.

The real numbers behind tree worker pay

The financial picture of your tree service operation extends far beyond worker wages. Payroll represents just one piece of a complex business puzzle. Here is the details.

Tree trimmer pay vs. business overhead

Labor typically consumes about 30% of your total revenue, but that’s only direct field costs. The real expense comes from everything else you must add on top. Take a $2,000 tree removal job. Approximately $1,300 goes to labor costs, but you’re not done paying yet.

Here is how the numbers break down:

• Field labor: 30% (±5%) of revenue
• Labor burden (taxes, benefits, etc.): 10% of revenue (35-45% of labor cost)
• Office staff/management: 10-12% of revenue
• Workers’ compensation insurance: Roughly 15% of a typical job cost

Equipment maintenance, fuel, disposal fees, general liability insurance, and other operational expenses add to your overhead. For more detailed breakdown, check our article Professional Tree Service Equipment Cost List 2025: 5 Categories You Need. A $2,000 tree removal job typically needs about $300 for workers’ comp and $150 in dump fees.

Another Angle, Client Rates vs. Worker Pay

The national average cost clients pay for tree trimming services is about $63 per hour. Clients might pay anywhere from $25 for budget contractors to $90 for highly experienced professionals.

But here’s what that $63 hourly rate must cover:

Most successful tree services price by project rather than hourly, following visual assessment of the job. When you do price hourly, rates typically range from $35 to $70 per hour per worker, with $55 being the average.

Your Target Margins for Sustainable Growth

As we discussed in our previous article of pricing your product for higher profit margin, smart tree service owners aim for these profit margins:

• 10%: Good performance
• 15%: Very good performance
• 20%: Outstanding performance

Getting there requires strategic thinking about labor costs:

Charge appropriately, that national average of $63/hour for tree trimming exists for a reason. Manage crew size efficiently since each additional worker adds $25-$80/hour to costs. Remember, most owners bring home approximately 10% of total revenues. Price based on value delivered rather than time spent.

Emergency services offer the biggest opportunity for higher margins. These jobs can command 2-3 times standard rates during off-hours work. When storm damage hits and clients need immediate help, your pricing power increases substantially.

Be cautious when labor costs extend far beyond hourly wages. The companies that survive and thrive understand every component of their true costs.

Building a Pay Structure that Actually Works

Your tree service business needs a solid pay structure to grow. Before you set any compensation system, research your local market’s competitive salaries to set realistic expectations for you and your team, this gives you and your team realistic expectations from the start.

The Hourly vs. Flat Rate Decision

This debate hits every tree service owner eventually. Each approach shapes how your crew works and how your business performs.

Hourly pay advantages:

• Workers don’t rush through time, which means intensive jobs
• Quality stays consistent because there’s no pressure to fly through tasks
• Clients get it, they understand hourly rates as a starting point
• Perfect for those unpredictable jobs where you can’t estimate time

Flat rate works advantages:

• Your efficient workers get rewarded for speed
• You know exactly what labor will cost before starting
• High performers love it because they can earn more by working smart
• Bookkeeping becomes much simpler

There’s no perfect answer for which type should you chose, but these market rates should guide your baseline pay decisions.

Smart tiering that motivates growth

A tiered system does more than just organize pay scales, this system creates clear paths for advancement within your organization. When people see advancement opportunities, they stay longer and work harder to get there.

Tiered systems work in two main ways:

• Role-based tiers: Each position has its own pay rate (for example: groundsman-tree trimmer-arborist-tree surgeon)
• Performance-based tiers: Sales targets unlock higher commission rates

Tiers can boost team spirit by rewarding expertise, but they might create gaps between new and seasoned workers.

Managing tiered pay structures becomes simpler with clear crew scheduling. ArborNote’s work order feature lets you see at a glance who’s working when, making it easier to assign the right skill levels to appropriate jobs and track crew performance over time.

Incorporating Bonuses and Performance Pay

Linking pay to results motivates employees to do their best. Here are some effective options:

What works:

• Merit raises: Performance reviews lead to base salary increases
• Commission for sales arborists: Sales arborists respond well to graduated commission rates rather than flat percentages
• Profit-sharing: Give workers the success they help create
• Recognition programs: Sometimes a “great job” motivates as much as money

For more inspiration, some companies skip commissions entirely. They prefer salary plus company bonuses because it keeps arborists focused on what’s best for clients rather than pushing expensive removals.

Seasonal Hiring and Pay Adjustments

The tree care and landscaping industry sees huge swings in work throughout the year, which makes managing workers a real challenge. Your crew may stay busy from March through October with 50-60 hour weekly schedule. Winter months bring a sharp drop to just 20-30 hours. Business owners need smart planning to stay profitable and keep their best workers.

Managing Workforce During Peak and Off Seasons

Seasonal transitions hit tree service businesses harder than most industries realize. Safety concerns spike during transition periods as workers shake off winter rust or adjust to changing conditions. Scheduling becomes a juggling act when work volume swings wildly, and productivity variations can turn steady revenue into a guessing game.

Smart operators always plan ahead for them. Holiday lighting installation, snow removal, and specialized winter pruning keep crews busy when tree work slows. This downtime also creates perfect opportunities for equipment maintenance and training programs that you never have time for during peak season.

The companies that succeed year-round understand something important: seasonal challenges require seasonal solutions.

Temporary vs. Full-Time Pay Strategies

Peak season hits, and suddenly you need more hands than you have. Here are two different kinds of worker you usually consider.

Temporary worker:

• They work less than 1,000 hours or one year
• You can hire them part-time, full-time, or seasonal
• Training focuses on must-know skills for specific jobs
• Early hiring gives enough time for proper training

Full-time worker:

• They keep your business running year-round
• Their skills and loyalty grow over time
• You spend less on repeated training
• Core business stays stable

The choice depends on your business model and cash flow patterns. It’s important to consider how you use a mix of both, maintaining a solid core team while strategically adding temporary help during busy periods.

How to stay competitive in tight labor markets

Overall, finding good workers is tough in this industry. 92% of green industry businesses struggle to find qualified people. The numbers tell the story, June 2021 had 10.1 million open jobs but only 9.5 million people looking for work.

These steps help attract and keep quality workers:

1. Pay well – Match or beat what other companies offer to keep your team intact
2. Give complete benefits – Take care of your workers and their families
3. Build a great workplace – Focus on keeping people safe and well-scheduled
4. Show room to grow – Let people see their future with your company

Smart seasonal planning and competitive pay help keep your workforce stable despite the ups and downs of the tree service industry.

One more thing, Insurance

Quality equipment alone won’t protect your tree service business, you need proper insurance and legal compliance too. Tree care workers face fatality rates 30 times higher than the all-industry average, making comprehensive coverage essential:

Insurance essentials:

• General liability insurance ($1 million per occurrence minimum)
• Workers’ compensation (costs about $9.15 per $100 of payroll)
• Proper employee classification to reduce premium costs

Legal compliance basics:

• Keep current training certificates for all workers
• Maintain detailed accident reports and safety documentation
• Follow evolving state licensing requirements (some states now require Licensed Tree Experts)

One quick note for client interactions: tree trimmers don’t expect tips like restaurant staff, though genuine appreciation always means a lot to hardworking crews.

For detailed insurance and legal guidance, check our previous article on Tree Care Service Insurance Guide and Tree Service Insurance Red Flags.

The tree service companies building lasting success treat compensation as an investment, not an expense. They understand that the right workers, paid fairly and managed well, become the foundation for everything else they want to achieve.

Your business deserves that kind of foundation. Good luck!