
Originally Posted by
Midtowner
How you pay your people should depend largely on what type of employees you're trying to attract.
On one hand, you have your average no-skilled blue collar employee. These can be found in warehouse stores, fast food, call centers, etc. With folks like that, you give them menial tasks, you provide strict supervised direction, you work off of the assumption that they are lazy, so you chastise them when they are not, and you pay them a piss poor wage. They are interchangable cogs in your machine. The only time you should consider paying those people better is when you are having a hard time attracting workers.
On the other hand, where you have white collar, or otherwise highly skilled workers, you should probably offer a decent variety of incentives to keep them around. For those types of workers, skill and experience is very important. Your people are not machines, there is something of an art to what they do. They are not easily replaceable. Therefore, you do what you must to keep them around, treat them like professionals, and hope they don't leave.
Of course, today's business environment is MUCH different from that which your father did business in. The employee moves very easily from job to job. No one retires at the same firm they started with -- it just doesn't happen anymore. You could TRY to overpay your people to keep them around, but most employers will tell you -- this doesn't really work. This is especially true when you as an employer have ever-changing needs. It will sometimes be necessary to cut entire divisions, relocate them, etc. You have no duty of loyalty to employees who are unprofitable to have.
Your goal as a business owner is to make money. The man who only pays himself $1.00 to work must have enough money not to have to worry about it or be getting paid in stock or dividends. No one works for free though.
You said "without the staff, the employer would be out of business." That's not true -- the employer can always find new staff, outsource, do whatever is in the best interest of his or her company. A much truer statement would be "Without the employer, the staff would not be employed [with that particular employer]."
Someone has to be the owner. Someone has to take that intial to grow that company. It is built on someone's shoulders. Without the Sam Waltons and Bill Gates of the world, where would we as a nation be?
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