Funny enough when business owners are asked about their business competitive advantages, it can take a long time for them to mention the employees. For some owners, their employees are ranked very high, while others only include their employees on their “good” list when they are forced to.
Many people believe that design, streamlined supply chains, trade secrets and pricing are where the business competition lies. However, it doesn’t seem like they know who manages additional channels, fine tunes the designs, sources the vendors and negotiates the prices. If you’re not a one-man business then it is time to realise that everything mentioned above cannot get done without a group of skilled employees.
Think about it, if you have a geotechnical engineering company and your employees walked off the job site one day, could you continue the work on your own? Certainly not! That’s obviously why you have hired employees in the first place. No one would waste money paying wages if they didn’t have to.
If your business is new, then it can take a while before you see some pay coming your way let alone your employees to. Worrying about wages seems like a far-off problem. Reality is many employees take home more than the business owner does. This is the truth and it can be difficult to create and continue your business with its competitive edge without the competitive wages. For the sake of the argument, a geotechnical company could potentially have construction consultants – which would make it more cost effective.
If you feel you are underestimating the importance of your employees, then sit down and think about each employee individually and see how it would impact the business if they left the business one by one. Would you be paying more to get another employee and re-train them? Did the employee find another job paying more but doing the same job? Letting the answers to these types of questions will help you to understand the importance of paying employees exactly what they deserve.
If you have your business that survives purely on paying below the market wages, then do you really have a business? If your business is only new and this is the condition it is currently at, but you are the one who sincerely believes in future prospects then you need to think about raising investments. Increasing pay for each employee is something that doesn’t happen that day but you can get it worked out and talk to your employees now so they are aware what they deserve to be paid will happen!
Work out some evaluations and make a list of the future wages per each employee. Add those into your budget and then work out what the net impact is going to be. It may not be as bad as you previously thought.
Being open and honest with your staff can gain their trust and loyalty. They may simply walk off the job if they are being underpaid. However, if they understand you are making small increases and movements that are benefiting them, they will understand and most likely stay loyal to your business. Employees are people just like you who are out working for a living and trying to do the best they can. Although they work for you, they are no lower than you and should get paid exactly what they deserve to keep your business up and running.