Posted by John Hultar on Apr 22, 2013

Employees Need Higher Wages – Just Do it

Employees Need Higher Pay

 

 

If you happen to be a business owner, struggling to find great employees, listen up!

I’m going to shatter a popular employee salary myth that you need to hear right now.  What you are about to read will contradict what the “mainstream business gurus” are advising regarding hiring Top Quality people.  This article might have arrived on your screen…just in time.

But first, just for fun, let’s create a common scenario millions of business owners find themselves in.

Manufactured Scenario of a Business Owner:

You are working over 50 hours per week, and you are barely even taking in a salary.  You started your business to make a profit.  Your business is leaving you stressed out 7 days a week.  You have hired a few employees, but you’re feeling like you have become more of a baby sitter than a business owner.  You have tried to attract and hire better qualified people, but you have failed miserably.

Ok, now we have set the stage.  But what is the solution?

Well, there is no clear-cut single solution for every company.  But, in my experience, offering Higher Wages to team members, is something that you should consider.

Let me simplify the above advice, and then I’ll explain how it works:  If you become known as an employer who pays above average wages, you will immediately reap the benefits.  You will find it much easier to attract excellent employees, and you will find it much easier to maintain their loyalty.

Naturally, there are several factors in play regarding why a potential employee would choose to apply for a job at one company over another.  Everybody knows this – but, if everything between 2 competing companies were equal except for wages, it’s safe to assume 100% of job seekers would choose the higher paying company.

Now, while this seems obvious, it also seems that most business owners have not been made privy to this inescapable truth.  I say this because, I see most business owners focusing on reducing wages at their company, when their time would be better spent focusing on increasing sales.  After all, there is a limit to how small of a wage a person will work for, but there are no limits placed on how many sales any company can make!

Additionally, I feel that the success or failure of a company is heavily based on the quality…of the entire team.  “The people.”  Meaning, everybody from the founder, to the person who was just hired yesterday.  And so to hope to attract great people, while offering average wages, or even worse, low wages, is simply foolish.

You can get away with paying low wages when you are a billion dollar corporation like Walmart, but not if you are a company with less than 10 million in annual sales.  And besides, these people who are dedicating their lives to helping your company succeed.  I would think you’d want them to feel properly compensated for their efforts, wouldn’t you?

Well you should!

Small companies now need to be more generous now, then any other time in history, when making decisions about compensation for their employees.  As you are aware, most job seekers no longer expect to be working for any company for 10 years or longer.  Many job seekers don’t even want to be working for 1 company for longer than 3 years.

The times have changed.  As a business owner, you need to adapt to the market conditions and the thought process of the people looking for careers before your competition does.

You can see the trend almost every day now.  The fastest growing companies worldwide, are commonly paying what others would consider “Big Salaries.”

So, my recommendation to business owners is, cut costs everywhere you can, but never in the wages you pay.  Offer what others would consider “Too Much” as opposed to “Too Little.”  You’ll never succeed in business in 2013, without a team of happy and talented employees.  Nuff said – Just do it.