Over my 20 years as a health business employer I have often been approached by members of my team with the age old comment “Paul I deserve a raise”.
I had the absolute pleasure a few weeks ago or interviewing business guru Tony Gattari for my Profit Club program – and he said that when he gets this enquiry from his team he says “ so you want more bananas – well thats fine but how are you going to bring me more bananas?”
The basic idea behind Tonys comment is that its OK for a team member to expect a pay rise but what are they going to do – or what have they done to deserve this increase. Have they launched a new program in your business, done the hard yards to secure a great local business contact, added a service to your business that you did not have before – basically – how has this team member added to your pile of bananas so that you have no trouble giving some of these bananas away.
I suggest all business owners think very carefully about agreeing to an employees wage demands without clear guidelines of what you expect in return – make the team member accountable for their wage and help them understand that there are many stresses that come with business ownership that are not experienced by the rank and file employee.
And while I am on a roll – remember the relationship of wages to value – that being the wage you can demand as an employee is directly proportional to the value you add ( or perceived value you add) to the organisation you work for – nothing more and nothing less.
It is no good to open up your 10 page CV and demand a senior wage if you are charging junior rates and not covering your costs – all businesses need to look at their wage costs as a % of billings and make sure that there is enough bananas left over to make the business worth the stress for the owner.
When any of my team have questioned the car I drive or the overseas holidays I enjoy – I am very quick to ask them one of my favourite questions – ie “Where were you? “ – where was that team member when I paid the deposit for the office even though the bank had knocked back our loan application, where was that team member when one of my clinics closed overnight because the gym that I was located in did not pay their rent, where was that team member when I could not make payroll and borrowed to keep the business open.
As a business owner – you take the hard road and should be rewarded with any and all success available – including time off, holidays , time with family and financial success – and don’t ever think you don’t deserve the good times – because as any business owner will tell you – they rarely leave the business – their mind is always full.
I welcome your comments and opinions.