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Link Posted: 2/10/2016 4:58:24 PM EDT
[#1]
What reason did he provide for deserving the +10%?  

When you say "whining" I'm thinking of someone just saying "I deserve 10% more because I'm special" type logic.
Link Posted: 2/10/2016 4:58:28 PM EDT
[#2]
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It will take about a year of training and going on jobs to get to where this guy is for a competent person who is suited for the work.

He gives good service above the standard our clients are used to in this kind of business, our quality people is part of the reason for our success.

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Post his position for 2/3 of what he makes now, and see who interviews.  

If you get a shitload of qualified applicants, you've learned that you are overpaying him.

If you don't get good applicants, your compensation package is more in line with the industry.

Remember that compensation is ultimately subject to market forces - a person's labor is worth what the market will pay, no more, no less. Paying well above market rates for performance that isn't well above market standards is as bad as underpaying for performance.


It will take about a year of training and going on jobs to get to where this guy is for a competent person who is suited for the work.

He gives good service above the standard our clients are used to in this kind of business, our quality people is part of the reason for our success.



Then why don't you offer him an incentive system?

He asked for 10% raise, give it to him.... sorta.   If he accomplishes x goal, and does not quit within the next year, he gets the bonus in a lump sum.  If he doesn't... he doesn't get it.
Link Posted: 2/10/2016 4:59:46 PM EDT
[#3]
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The fact that you're posting about this and seeking input combined with what the guy is making makes me think that it's in your interest to be fair and treat them well.

Is there a risk of this guy splintering off and becoming a competitor? If that's the case, it's worth giving the raise and making sure he's bound by a non-compete if he isn't already. Sometimes people look to create a level of animosity to justify going into competition with an employer that took good care of them.

I would think there's a good chance that you aren't taking much more salary than that yourself and I would explain that and that your assets and investment are tied up in the success of the company.
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I have considered that.  I don't think he could start competing, but he could share trade secrets with a competitor.

I take less salary than he is paid.  I tried to explain the risk, taxes, liability, etcetc to him but it doesn't seem to be sinking in.  I think I will try to take him to dinner and try harder.
Link Posted: 2/10/2016 5:00:10 PM EDT
[#4]
I don't know what your company does, but 10 percent seems unrealistic and unsustainable.  Sooner or later you will have to deal with this.  Big raises come when we do better.  I gained experience, but generally had to leave where I was working to get larger pay increases.  Thats how the world works.  I know I could have stayed where I was, but large pay raises are not generally figured into the business plan.

Offer 3 percent.  Most companies would offer a bonus.  That way next year you don't have to building on top of already high salary.  If you give him 100k plus a 40k bonus, next year his salary is still 100k.

You expect loyalty and professionalism.  Talk to him, see if he will be loyal and professional or if he is just out for the money.  If he is a short term thinker and only wants money, kick his mercenary ass out.  He will do this every year, then every six months.  It doesn't matter how much you pay him, he will want more and his Ego will tell him he deserves more (I don't know him or his work, maybe he does).  Its been my experience that some people believe that you can't run your company without them.  They mistakenly think they are more important then they really are.  

What happens if you say no.  Does he quite.  Will he swipe your customers.  Will he stay but act unprofessional.  If you think that he will act unprofessional at any time then you have a problem.  Cut him now and start the rebuilding process, or give him a raise, have him train a new guy, then cut him when the new guy is ready to take over.   You can't have your company held hostage by unprofessional workers.

Good Luck Brother, please keep us updated
Link Posted: 2/10/2016 5:00:59 PM EDT
[#5]
I do not accept those who stir up the natives on labor and pay issues.

I don't care if fireworks go off, I would let him go immediately upon his talking to the other employees and bitching and whining.

20% realistic unemployment is not the time for an employee to play his raise card.
Link Posted: 2/10/2016 5:01:18 PM EDT
[#6]
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That's kind of a misconception I think. I believe all workers have the right to discuss what they are making. Obviously the company usually hates it though, because people doing similar jobs might find out just how much less they are taking home.
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The fact that he is encouraging the other workers to question their pay is a problem.   For one it's none of his business what the others make or don't make .   And in many companies would be grounds for termination .  

He agreed to work for you at a set amount .  If it does not suit him he should leave immediately and find something more to his liking.


Write or re-write all job descriptions .  And educational requirements .   Let them think about going back to school to obtain a degree if they want to keep their jobs.


gd


That's kind of a misconception I think. I believe all workers have the right to discuss what they are making. Obviously the company usually hates it though, because people doing similar jobs might find out just how much less they are taking home.


I agree.  A certain amount of transparency in compensation is a good sign a company is interested in finding and retaining the best talent.  The more secretive a company is about compensation, the more I've found they are more focused on "can we get this guy to work for a LOT less than our competition would pay him".  Long term view vs. short term view.
Link Posted: 2/10/2016 5:01:35 PM EDT
[#7]
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Then why don't you offer him an incentive system?

He asked for 10% raise, give it to him.... sorta.   If he accomplishes x goal, and does not quit within the next year, he gets the bonus in a lump sum.  If he doesn't... he doesn't get it.
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Post his position for 2/3 of what he makes now, and see who interviews.  

If you get a shitload of qualified applicants, you've learned that you are overpaying him.

If you don't get good applicants, your compensation package is more in line with the industry.

Remember that compensation is ultimately subject to market forces - a person's labor is worth what the market will pay, no more, no less. Paying well above market rates for performance that isn't well above market standards is as bad as underpaying for performance.


It will take about a year of training and going on jobs to get to where this guy is for a competent person who is suited for the work.

He gives good service above the standard our clients are used to in this kind of business, our quality people is part of the reason for our success.



Then why don't you offer him an incentive system?

He asked for 10% raise, give it to him.... sorta.   If he accomplishes x goal, and does not quit within the next year, he gets the bonus in a lump sum.  If he doesn't... he doesn't get it.


We have s 1% of net profit sharing bonus.

Link Posted: 2/10/2016 5:02:02 PM EDT
[#8]
Quoted:


I don’t know what his problem his.  How do I give him/them a reality check?  
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Is his complaining disrupting the operation of your company or affecting morale?   If not, no worries.

If it is...

For that amount of pay....  if you can find other people to do the job to an acceptable standard, then hire one of those people and fire this guy.   If you have a labor lawyer, I'd suggest asking whether you need to give him a warning first.


There is a chance he might be concerned with the base salary from a resume standpoint; i.e., he wants to be able to say his salary was X per year.   In terms of take home pay, though, it sounds like he's probably out of his flipping mind.
Link Posted: 2/10/2016 5:03:00 PM EDT
[#9]
offer him profit sharing instead
Link Posted: 2/10/2016 5:03:27 PM EDT
[#10]
Pretend to give in to his demands.

Tell him you want to bring him in as an internal employee...no more travel, better pay.

Have him train his replacement, once his replacement is up to speed, figure out a way to make him quit (it's easier than you could ever imagine).

You have a new lead tech, he can't get unemployment because he quit.
Link Posted: 2/10/2016 5:04:51 PM EDT
[#11]
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He gets paid a rate per day in the field on top of his salary.  A lower rate per day for stand by time.
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I have an employee complaining he didn’t get a raise this year, and advocating strongly for additional raises for other employees.

He is our best field employee.  He’s early 30s, no degree, single.  He made $140k last year.  45k salary, the balance is day rates for working jobs. He has said he feels like he deserves a 10% raise.  

Our company is 4 years old, he has worked here three years.  I think he made 60k 90k and 140k the three years he’s worked here.  



Can you explain the bolded part?  Clearly his main earnings come from day rates, so can you explain further, since this isn't something I'm familiar with.


He gets paid a rate per day in the field on top of his salary.  A lower rate per day for stand by time.


Thanks.  So here's my follow up - has his base or day rate increased in the past three years, or is he making more money because he's simply working more?  This is key.  If he's making the same, just working more now than when he started then I think he may have some justification in a raise.  Not saying 10%, because I have no idea of the details.  However, if his rates have increased, then he would need a real reasons to ask for what would amount to an additional raise.
Link Posted: 2/10/2016 5:05:03 PM EDT
[#12]
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The average prices for a market basket of goods and services from the third quarter of 2014 to the third quarter of 2015 fell by 0.4%.

There was no inflation.  In fact his buying power went up 0.04% over 2013 to 2014.

Or to frame it another way for him - - - When our retired military and wounded veterans get a rise (cost-of-living adjustment do to inflation increase) you will consider doing the same for your company.
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Lol, sorry, but people who chose to volunteer in our military get injured it has nothing to do with the best employee of a private small business making more money.  Take that shit somewhere else.

Also, once people start to complain about pay, they feel like they are being shorted by the company, their work will start to reflect it, and it's probably the beginning of the end.
Link Posted: 2/10/2016 5:05:09 PM EDT
[#13]
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I agree.  A certain amount of transparency in compensation is a good sign a company is interested in finding and retaining the best talent.  The more secretive a company is about compensation, the more I've found they are more focused on "can we get this guy to work for a LOT less than our competition would pay him".  Long term view vs. short term view.
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The fact that he is encouraging the other workers to question their pay is a problem.   For one it's none of his business what the others make or don't make .   And in many companies would be grounds for termination .  

He agreed to work for you at a set amount .  If it does not suit him he should leave immediately and find something more to his liking.


Write or re-write all job descriptions .  And educational requirements .   Let them think about going back to school to obtain a degree if they want to keep their jobs.

gd


That's kind of a misconception I think. I believe all workers have the right to discuss what they are making. Obviously the company usually hates it though, because people doing similar jobs might find out just how much less they are taking home.


I agree.  A certain amount of transparency in compensation is a good sign a company is interested in finding and retaining the best talent.  The more secretive a company is about compensation, the more I've found they are more focused on "can we get this guy to work for a LOT less than our competition would pay him".  Long term view vs. short term view.


In software development a job posting without a numeric salary means they're trying to pay way under market or they want an H1B.
Link Posted: 2/10/2016 5:07:30 PM EDT
[#14]
how much has his healthcare that you cover increased in price lately?



sounds like he is worth a premium but you might point out lots of folks doing what he does for less money.
Link Posted: 2/10/2016 5:07:35 PM EDT
[#15]
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I have an employee complaining he didn’t get a raise this year, and advocating strongly for additional raises for other employees.
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The bold part indicates he's going to be problem in future no matter what you do now.
I would hire another guy quickly and start training him for the day this guy leaves or is kicked out.
He's going to be a thorn on your side in future as long as he's there.

Link Posted: 2/10/2016 5:08:21 PM EDT
[#16]
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Thanks.  So here's my follow up - has his base or day rate increased in the past three years, or is he making more money because he's simply working more?  This is key.  If he's making the same, just working more now than when he started then I think he may have some justification in a raise.  Not saying 10%, because I have no idea of the details.  However, if his rates have increased, then he would need a real reasons to ask for what would amount to an additional raise.
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I have an employee complaining he didn’t get a raise this year, and advocating strongly for additional raises for other employees.

He is our best field employee.  He’s early 30s, no degree, single.  He made $140k last year.  45k salary, the balance is day rates for working jobs. He has said he feels like he deserves a 10% raise.  

Our company is 4 years old, he has worked here three years.  I think he made 60k 90k and 140k the three years he’s worked here.  



Can you explain the bolded part?  Clearly his main earnings come from day rates, so can you explain further, since this isn't something I'm familiar with.


He gets paid a rate per day in the field on top of his salary.  A lower rate per day for stand by time.


Thanks.  So here's my follow up - has his base or day rate increased in the past three years, or is he making more money because he's simply working more?  This is key.  If he's making the same, just working more now than when he started then I think he may have some justification in a raise.  Not saying 10%, because I have no idea of the details.  However, if his rates have increased, then he would need a real reasons to ask for what would amount to an additional raise.


It's both.  He's working more days and we've raised his rate.  
Link Posted: 2/10/2016 5:09:42 PM EDT
[#17]
Tell him if he doesn't like it I'm willing to take his job tomorrow.
Link Posted: 2/10/2016 5:11:44 PM EDT
[#18]
Increase his salary 14k or the 10%.  Then make him pay $538 bi-weekly or whatever it equals out to for his health care.

On a serious note, does he realize how much you pay for his health insurance?
Link Posted: 2/10/2016 5:12:52 PM EDT
[#19]
Have him start training his replacement.








Link Posted: 2/10/2016 5:13:24 PM EDT
[#20]
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Not sure what your industry standard compensation looks like, but I manage a group of roughly 30 construction workers.  Like you we cover 100 percent of their health costs, do the 4% match on the 401K, etc.  

Our guys travel pretty much constantly, the entire continental US and we don't have any field personal that make $145K.

I personally would tell him good luck, you currently cannot afford to keep him on at his requested wage rates but that you hope he finds it on the open market.
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That seems like the most legit way to go about this.
Link Posted: 2/10/2016 5:13:50 PM EDT
[#21]
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Are the increases per year because you've been progressively giving him more work (hence making a lot more day rates)?   There's a possibility that he feels like his base salary should be increased as an accommodation to how hard he's been working.  Not sure if he truly is or not, those just seem like some pretty significant pay jumps.   There is a point at which you're putting in so many hours that it doesn't feel like you're making as much as you should be to make it worth while because so much of your time is company time and you have so little personal time once sleep is factored in.

Where i work, i have never had to ask for a raise, i just got one when my bosses felt like i deserved it which always seemed to be before that point that i felt like i was making too little for what i was doing.  It's an office job, but longer hours than typical with an expectation of always being on call for an emergency where i may have to work well into the night to get something done.  I've always felt like i've been well taken care of.

This guy might not be upset with the benefits so much as feeling like he's being run ragged with nothing "extra" to show for it.  It's hard to say.  Some people are never satisfied and are whiny.  It's hard to parse that out without a sit down talk with someone to figure out where the complaints are coming from.
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I have an employee complaining he didn’t get a raise this year, and advocating strongly for additional raises for other employees.

He is our best field employee.  He’s early 30s, no degree, single.  He made $140k last year.  45k salary, the balance is day rates for working jobs. He has said he feels like he deserves a 10% raise.  

Our company is 4 years old, he has worked here three years.  I think he made 60k 90k and 140k the three years he’s worked here.  

He does field service type technical work for us as a job supervisor (in charge of 3 other guys on a job).   Job description includes driving 1-ton truck with equipment trailer (20% time), setting up and tearing down equipment labor (10% time), interfacing with customers and computer/technical type work operating equipment (70% time).  They also get paid waiting around for the customer to be ready for our process.  They work 12 hour shifts. w/ 24 hour coverage. The company pays travel, lodging, meals etc.  He has a company card.  We pay 100% health insurance and 401k matching to 4% plus a profit sharing bonus.  

It’s like a gut punch to me that this guy is whining about money.  We go out of our way to treat our employees very well.  Feels like a betrayal.  Our lowest paid employee makes 55k /yr with the same benefits package.  We have 25 or so employees.

I don’t know what his problem his.  How do I give him/them a reality check?  


Are the increases per year because you've been progressively giving him more work (hence making a lot more day rates)?   There's a possibility that he feels like his base salary should be increased as an accommodation to how hard he's been working.  Not sure if he truly is or not, those just seem like some pretty significant pay jumps.   There is a point at which you're putting in so many hours that it doesn't feel like you're making as much as you should be to make it worth while because so much of your time is company time and you have so little personal time once sleep is factored in.

Where i work, i have never had to ask for a raise, i just got one when my bosses felt like i deserved it which always seemed to be before that point that i felt like i was making too little for what i was doing.  It's an office job, but longer hours than typical with an expectation of always being on call for an emergency where i may have to work well into the night to get something done.  I've always felt like i've been well taken care of.

This guy might not be upset with the benefits so much as feeling like he's being run ragged with nothing "extra" to show for it.  It's hard to say.  Some people are never satisfied and are whiny.  It's hard to parse that out without a sit down talk with someone to figure out where the complaints are coming from.


I think he was in the field around 200 days last year.  I'd have to look it up to know for sure.  
Link Posted: 2/10/2016 5:14:40 PM EDT
[#22]
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Increase his salary 14k or the 10%.  Then make him pay $538 bi-weekly or whatever it equals out to for his health care.

On a serious note, does he realize how much you pay for his health insurance?
View Quote


Yeah, he knows.

Link Posted: 2/10/2016 5:16:09 PM EDT
[#23]
Even my last day on notice after i quit my last job I never complained to anyone under me (I was the #2 guy at a small business) about pay. If anyone asked how much I made though, I would tell them, and explain to them what they could do to make as much.

I would be concerned that he's complaining to other people. When my workloads or efficiency would increase I'd go straight to the boss for a raise. Not complain behind his back.
Link Posted: 2/10/2016 5:16:22 PM EDT
[#24]
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We have s 1% of net profit sharing bonus.

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No one EVER believes the "profit" numbers companies put out. I worked at a machine shop that had 175 employees and we were doing $1.5million per month in sales, we'd get a bonus check of about $1500. I leave for a few years, they're down to 100 employees and shipping $4 milllion/month, oddly enough they weren't making money and so every quarter we were told that there was no bonuses due to no profits. Claimed their biggest expense was labor all along.

If they wanted to do away with the bonus program, fine. But don't insult my intelligence by doing over twice the amount of business with almost half the employees and telling me you're not making money.
Link Posted: 2/10/2016 5:16:52 PM EDT
[#25]
I would call his ass in, sit him down and ask,

WTF, is your problem. Im running a business not a daycare.

You want more do more, improve your attitude and stop being a whiny pussy,
now gtfo and go back to work, or not,  your choice.
Link Posted: 2/10/2016 5:17:09 PM EDT
[#26]
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Math is not your strong point. Obviously, he needs to hire me instead since I'm better at math.
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This sumbitch is making 140k a year and bitching??????  Hes damn near tripled his starting wage in 3 years.   What more does he want, Part ownership in the Got damned company?


Math is not your strong point. Obviously, he needs to hire me instead since I'm better at math.




Hey, I said "damn near"  which translates very loosely LOL... consider it a ballpark calculation
Link Posted: 2/10/2016 5:17:26 PM EDT
[#27]
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Pretend to give in to his demands.

Tell him you want to bring him in as an internal employee...no more travel, better pay.

Have him train his replacement, once his replacement is up to speed, figure out a way to make him quit (it's easier than you could ever imagine).

You have a new lead tech, he can't get unemployment because he quit.
View Quote


Link Posted: 2/10/2016 5:17:58 PM EDT
[#28]

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I have considered that.  I don't think he could start competing, but he could share trade secrets with a competitor.



I take less salary than he is paid.  I tried to explain the risk, taxes, liability, etcetc to him but it doesn't seem to be sinking in.  I think I will try to take him to dinner and try harder.

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The fact that you're posting about this and seeking input combined with what the guy is making makes me think that it's in your interest to be fair and treat them well.



Is there a risk of this guy splintering off and becoming a competitor? If that's the case, it's worth giving the raise and making sure he's bound by a non-compete if he isn't already. Sometimes people look to create a level of animosity to justify going into competition with an employer that took good care of them.



I would think there's a good chance that you aren't taking much more salary than that yourself and I would explain that and that your assets and investment are tied up in the success of the company.




I have considered that.  I don't think he could start competing, but he could share trade secrets with a competitor.



I take less salary than he is paid.  I tried to explain the risk, taxes, liability, etcetc to him but it doesn't seem to be sinking in.  I think I will try to take him to dinner and try harder.

While you are doing that, find out what his long term life goals are.  Single and in his 30's working himself hard to do what?

 



You may uncover a drug or gambling problem that's causing him to burn through a lot of money.   Where is all the money going?  He's going to be a millionaire before he's 45 if he's not spending it.




Also, "fucking millennials."
Link Posted: 2/10/2016 5:19:18 PM EDT
[#29]

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Don't do it.  He's lazy as fuck, hire me.
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I have an employee complaining he didn’t get a raise this year, and advocating strongly for additional raises for other employees.



He is our best field employee.  He’s early 30s, no degree, single.  He made $140k last year.  45k salary, the balance is day rates for working jobs. He has said he feels like he deserves a 10% raise.  



Our company is 4 years old, he has worked here three years.  I think he made 60k 90k and 140k the three years he’s worked here.  



He does field service type technical work for us as a job supervisor (in charge of 3 other guys on a job).   Job description includes driving 1-ton truck with equipment trailer (20% time), setting up and tearing down equipment labor (10% time), interfacing with customers and computer/technical type work operating equipment (70% time).  They also get paid waiting around for the customer to be ready for our process.  They work 12 hour shifts. w/ 24 hour coverage. The company pays travel, lodging, meals etc.  He has a company card.  We pay 100% health insurance and 401k matching to 4% plus a profit sharing bonus.  



It’s like a gut punch to me that this guy is whining about money.  We go out of our way to treat our employees very well.  Feels like a betrayal.  Our lowest paid employee makes 55k /yr with the same benefits package.  We have 25 or so employees.



I don’t know what his problem his.  How do I give him/them a reality check?  



Fire that guy and hire me in his position.  And pay.  That will teach him a lesson.


Don't do it.  He's lazy as fuck, hire me.




 
screw both of those slackers, hire me






Link Posted: 2/10/2016 5:19:31 PM EDT
[#30]
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No one EVER believes the "profit" numbers companies put out. I worked at a machine shop that had 175 employees and we were doing $1.5million per month in sales, we'd get a bonus check of about $1500. I leave for a few years, they're down to 100 employees and shipping $4 milllion/month, oddly enough they weren't making money and so every quarter we were told that there was no bonuses due to no profits. Claimed their biggest expense was labor all along.

If they wanted to do away with the bonus program, fine. But don't insult my intelligence by doing over twice the amount of business with almost half the employees and telling me you're not making money.
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We have s 1% of net profit sharing bonus.



No one EVER believes the "profit" numbers companies put out. I worked at a machine shop that had 175 employees and we were doing $1.5million per month in sales, we'd get a bonus check of about $1500. I leave for a few years, they're down to 100 employees and shipping $4 milllion/month, oddly enough they weren't making money and so every quarter we were told that there was no bonuses due to no profits. Claimed their biggest expense was labor all along.

If they wanted to do away with the bonus program, fine. But don't insult my intelligence by doing over twice the amount of business with almost half the employees and telling me you're not making money.


You can certainly play with the number by deciding when to spend money, etc.  But I'd like to think we do it right.
Link Posted: 2/10/2016 5:20:17 PM EDT
[#31]
Problem employees will always be problem employees, he has lost perspective of how good he has it.


Figure out a way to have him start training his replacement(hopefully me).





Link Posted: 2/10/2016 5:21:23 PM EDT
[#32]
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While you are doing that, find out what his long term life goals are.  Single and in his 30's working himself hard to do what?  

You may uncover a drug or gambling problem that's causing him to burn through a lot of money.   Where is all the money going?  He's going to be a millionaire before he's 45 if he's not spending it.


Also, "fucking millennials."
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The fact that you're posting about this and seeking input combined with what the guy is making makes me think that it's in your interest to be fair and treat them well.

Is there a risk of this guy splintering off and becoming a competitor? If that's the case, it's worth giving the raise and making sure he's bound by a non-compete if he isn't already. Sometimes people look to create a level of animosity to justify going into competition with an employer that took good care of them.

I would think there's a good chance that you aren't taking much more salary than that yourself and I would explain that and that your assets and investment are tied up in the success of the company.


I have considered that.  I don't think he could start competing, but he could share trade secrets with a competitor.

I take less salary than he is paid.  I tried to explain the risk, taxes, liability, etcetc to him but it doesn't seem to be sinking in.  I think I will try to take him to dinner and try harder.
While you are doing that, find out what his long term life goals are.  Single and in his 30's working himself hard to do what?  

You may uncover a drug or gambling problem that's causing him to burn through a lot of money.   Where is all the money going?  He's going to be a millionaire before he's 45 if he's not spending it.


Also, "fucking millennials."


Don't blame millennials for people being shit bags. It would be like us calling all Vietnam era citizens shit bags because of draft dodgers. I have 3 degrees work 60-80 hours a week and bring in less than 60k a year. I'd kill to be making 100k.
Link Posted: 2/10/2016 5:21:33 PM EDT
[#33]
Discussion ForumsJump to Quoted PostQuote History
Quoted:
While you are doing that, find out what his long term life goals are.  Single and in his 30's working himself hard to do what?  

You may uncover a drug or gambling problem that's causing him to burn through a lot of money.   Where is all the money going?  He's going to be a millionaire before he's 45 if he's not spending it.


Also, "fucking millennials."
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Discussion ForumsJump to Quoted PostQuote History
Quoted:
Quoted:
Quoted:
The fact that you're posting about this and seeking input combined with what the guy is making makes me think that it's in your interest to be fair and treat them well.

Is there a risk of this guy splintering off and becoming a competitor? If that's the case, it's worth giving the raise and making sure he's bound by a non-compete if he isn't already. Sometimes people look to create a level of animosity to justify going into competition with an employer that took good care of them.

I would think there's a good chance that you aren't taking much more salary than that yourself and I would explain that and that your assets and investment are tied up in the success of the company.


I have considered that.  I don't think he could start competing, but he could share trade secrets with a competitor.

I take less salary than he is paid.  I tried to explain the risk, taxes, liability, etcetc to him but it doesn't seem to be sinking in.  I think I will try to take him to dinner and try harder.
While you are doing that, find out what his long term life goals are.  Single and in his 30's working himself hard to do what?  

You may uncover a drug or gambling problem that's causing him to burn through a lot of money.   Where is all the money going?  He's going to be a millionaire before he's 45 if he's not spending it.


Also, "fucking millennials."


I was thinking 'fucking millennials' as well.  Although some people would say I am one. 1980

Link Posted: 2/10/2016 5:21:51 PM EDT
[#34]
Id bump him 5% on his base pay. And tell him he has topped out on his pay scale
Id also severely squash  all the.cross talk among the emoyees about pay. Nothing causes more problems than people comparing paychecks. If the other employees have a problem with their pay they need to come to you.
Edited to say It sounds like you really take care of your employees.
Link Posted: 2/10/2016 5:21:59 PM EDT
[#35]
OP,

Can you replace him and continue to function well?

If the answer is no, you had better start executing a plan to be able to do so.

I've seen "this guy" before - making good money, but just simply wants more, for no good reason other than "I want it."  This will not end well for you I predict. I suggest you prepare to replace him - only if necessary - but you need to be ready to do that both mentally and operationally.  You need to be in the strong mindset that you are comfortable letting him walk.


Good luck.


CMOS
Link Posted: 2/10/2016 5:24:54 PM EDT
[#36]
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Quoted:
Id bump him 5% on his base pay. And tell him he has topped out on his pay scale
Id also severely squash  all the.cross talk among the emoyees about pay. Nothing causes more problems than people comparing paychecks. If the other employees have a problem with their pay they need to come to you.
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I have a couple of partners.  I'm not really the personnel/operations guy, I am the technical backbone of the operation.  We are discussing as a group how to handle things.

Link Posted: 2/10/2016 5:26:28 PM EDT
[#37]
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Pretend to give in to his demands.

Tell him you want to bring him in as an internal employee...no more travel, better pay.

Have him train his replacement, once his replacement is up to speed, figure out a way to make him quit (it's easier than you could ever imagine).

You have a new lead tech, he can't get unemployment because he quit.
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Fucking terrible "advice".
Link Posted: 2/10/2016 5:26:29 PM EDT
[#38]
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Quoted:
OP,

Can you replace him and continue to function well?

If the answer is no, you had better start executing a plan to be able to do so.

I've seen "this guy" before - making good money, but just simply wants more, for no good reason other than "I want it."  This will not end well for you I predict. I suggest you prepare to replace him - only if necessary - but you need to be ready to do that both mentally and operationally.  You need to be in the strong mindset that you are comfortable letting him walk.


Good luck.


CMOS
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We can deal with it.  Myself or other owners will go into the field again.  That's how we started the business, and still do it at peak volume times.

Link Posted: 2/10/2016 5:26:47 PM EDT
[#39]
If the market rate for someone in his position with his credentials and skills is 10% higher, give him a raise if you feel he is worth it.  If the market rate isn't higher, let him know you value his contributions but you can't afford to pay him more at this time.  Give him an opportunity to bring extra business to the company and pay him a percentage for his efforts.  If he is hungry enough for a raise, opportunities like that will keep you growing and him earning more.  Never pay raises solely based on longevity.  Pay raises and bonuses based on performance and contributions.  Always create opportunities for interested parties to earn more by helping you earn more.
Link Posted: 2/10/2016 5:28:39 PM EDT
[#40]
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I have a couple of partners.  I'm not really the personnel/operations guy, I am the technical backbone of the operation.  We are discussing as a group how to handle things.

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Id bump him 5% on his base pay. And tell him he has topped out on his pay scale
Id also severely squash  all the.cross talk among the emoyees about pay. Nothing causes more problems than people comparing paychecks. If the other employees have a problem with their pay they need to come to you.



I have a couple of partners.  I'm not really the personnel/operations guy, I am the technical backbone of the operation.  We are discussing as a group how to handle things.



That should be a no-no, even amongst co-workers. Pretty shitty that happened.
Link Posted: 2/10/2016 5:30:53 PM EDT
[#41]
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You can certainly play with the number by deciding when to spend money, etc.  But I'd like to think we do it right.
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We have s 1% of net profit sharing bonus.



No one EVER believes the "profit" numbers companies put out. I worked at a machine shop that had 175 employees and we were doing $1.5million per month in sales, we'd get a bonus check of about $1500. I leave for a few years, they're down to 100 employees and shipping $4 milllion/month, oddly enough they weren't making money and so every quarter we were told that there was no bonuses due to no profits. Claimed their biggest expense was labor all along.

If they wanted to do away with the bonus program, fine. But don't insult my intelligence by doing over twice the amount of business with almost half the employees and telling me you're not making money.


You can certainly play with the number by deciding when to spend money, etc.  But I'd like to think we do it right.

Didn't mean to imply that you aren't doing it right but I'll never believe math when it's tied to bonuses.
Link Posted: 2/10/2016 5:34:27 PM EDT
[#42]
Have you guys pulled him in and presented the issue from your point of view? If not, do so, lay out what the comparables are in your field, and tell him to make his case. Maybe discuss among yourselves beforehand what, if anything, the employee could do to make a ten percent raise worth it for you and work with him to formulate a plan to get him there. Maybe explain that more money would mean increased responsibility which would mean displaying leadership and management qualities like not rustling jimmies in the work force over pay.
Link Posted: 2/10/2016 5:37:24 PM EDT
[#43]

Is he the type of guy who will encourage your other employees to start whining about increases in wages? If so, nip it in the bud.



If you make a deal with him and keep him, you may want to have him sign a non-compete and a confidentiality agreement.
Link Posted: 2/10/2016 5:42:09 PM EDT
[#44]
I would also talk to him about what you expect for more?     If he is your best guy you want to keep him.   A guy in the Field that keep customers happy is worth something.    Possibly let him keep a % of the job he works on.  He may make more he may make less, bit would have incentive.....  Basically make him management....  Salary.    Do you give your guys bonus on profit at end of year. or Bonus on Performance.

And keep in mind it sound like this job is gone all the time and on call all the time so, he get a lot of hours.
Link Posted: 2/10/2016 5:45:11 PM EDT
[#45]
the squeaky wheel doesn't always get grease, sometimes it gets replaced.




and then put up a sign in a common area saying "Firings will continue until company morale improves."



seriously tho, it's up to him to sell you on why he thinks he's worth more money, and it doesn't sound like he's doing a good job selling you on it..   Honestly, nobody in a company is irreplaceable, with very few exceptions.. the question becomes how much would it hurt you to not have him and would someone else step up in his place.

the grass isn't always greener, i've seen people leave for another gig, only to come back 6 months later.. begging for their position and seniority back.
it also sounds like you guys treat your employees very well, i respect that and understand what it takes to do so.  It sounds like this guy may not understand what's involved and how much employees really cost a company, and how difficult BHO and the government make it for companies to treat their employees well.
Link Posted: 2/10/2016 5:45:28 PM EDT
[#46]
Tell him you agree everyone should get a pay increase. But to pay for it someone will have to lose their job as you will have to downsize to get the funds to pay for it.  Then pull everyone else in and tell them that Mr. Whining about Pay will be recommending who should be fired in his new position of Firing Supervisor which will be paid for by firing one employee.
Link Posted: 2/10/2016 5:46:39 PM EDT
[#47]
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We can deal with it.  Myself or other owners will go into the field again.  That's how we started the business, and still do it at peak volume times.

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OP,

Can you replace him and continue to function well?

If the answer is no, you had better start executing a plan to be able to do so.

I've seen "this guy" before - making good money, but just simply wants more, for no good reason other than "I want it."  This will not end well for you I predict. I suggest you prepare to replace him - only if necessary - but you need to be ready to do that both mentally and operationally.  You need to be in the strong mindset that you are comfortable letting him walk.


Good luck.


CMOS


We can deal with it.  Myself or other owners will go into the field again.  That's how we started the business, and still do it at peak volume times.




Good.

Then unless he's really making you obscene profits that JUSTIFY a raise, stand firm and keep the explanation short, "At this time a raise is not warranted."  And that's it.

Prepare for him to either accept it, or pout like a little baby, which may include behaviors like tanking  his work speed, etc.


CMOS
Link Posted: 2/10/2016 5:47:07 PM EDT
[#48]
Get rid of him,guys like that stir shit and who needs that stress on top of what you have.
Everyone is replaceable
Link Posted: 2/10/2016 5:48:01 PM EDT
[#49]
Start looking to replace him, he is probably looking to move on.

If the more he makes the more  you make, try to meet in the middle, if he keeps up souring the other employees? Get rid of him. I bet right now he is running his mouth at how you cant survive without him in the company.
Link Posted: 2/10/2016 5:49:06 PM EDT
[#50]
Hes overpaid.

Expects insane raises based upon the last 3 years.

Get him back down to earth and keep in mind what he COULD make other places. I doubt its that much.
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