No One Wants to Work [For You] Anymore: The End of Oligopsony

[Moostache]

64. I don't know you or your business, but I've turned more laps than I like to admit now...

I have seen more often than not that being an 80-90% efficiency employee only gets you 125% expectations and no greater share in the profits or success of the company; meanwhile the slugs seem to get away with it by their continued presence, the boss pulls up in a new Mercedes-Benz after a 3 week safari, and resentment, burn-out and negativity builds.

I do not wish to impugn you or your exact situation...like I said I know neither...I am just trying to offer a glimpse at the common frustrations on the other side of this situation.

As the owner, set the standards and enforce them equitably and without prejudice or malice.
If the standard is not met, it is imperative that consequences follow; otherwise, you have created negative inertia.
If you set a high bar though, and someone attains or surpasses it? How do you reward that?

A bonus check that is insultingly low? Been there...steward of a project with $42M in NET profit impact for the year. Reward? $1,000 one-time bonus and a 2% COLA with a 5% rise in employee-contribution to the health plan for that year. In the end? I LOST purchasing power and overall compensation...how motivated does anyone feel after that?

A 'raise' that nets them an extra $20 a month? Nothing at all?
Just an exhortation that they covered for the lower performers yet again? Not fucking likely to happen again.

In this country, we love to say that small businesses are the engine of the economy, yet there is a widespread tendency to use the lowest octane gas, the cheapest oil and the most threadbare tires available to drive those engines. If the owners are pulling 100-hour work weeks, and busting themselves on the rocks alongside their employees; that is one thing that can inspire loyalty and understanding...if said owner is in the shop 4 hours a month, ruling remotely from a satellite office or simply NEVER around? That is something else entirely...and only the individuals in those positions themselves can truly KNOW which kind they are (or wish to become).

Ferrari performance does not come from 20-year old Pontiac Firebird vehicles - nor does it come from uninspired, undisciplined staffs - it comes from highest quality parts and workmanship and expectations and commitment to maintaining excellence above all else. Long-term profits and reputation invariably follow dedication. Dedication is cultivated, not bought at a discount.

Pay a person just enough to not starve and they will work just enough to not be fired.
Pay them LESS than a living wage and they will find ways to steal from you through lack of effort, no dedication or outright sloth.

Pay them based on the value they add to the business, and as a FAIR portion of the profits? I say try it and see - 40+ years of 'trickle down' thinking is an abject failure in my eyes...but my bet would be on the ingenuity and drive of a motivated, well-paid staff of 10 to run circles around a tired, depressed, unmotivated and under-paid group of 50 or more. The question is does an owner see more value in shared profits and longer-term stability or a much bigger share of the short-term and a plan to parachute out and abandon the workers anyway?