Andy,
I was out of town a couple weeks back and was having a discussion with a buddy sitting by a campfire. The conversation was, my buddy had employees asking for raises who did not do great work.
My boiled down response was so you are contemplating paying people more money to do the same crappy work. If they are doing great work, pay them. If they are doing sub par work, cut them and use the money on talent. Human capital is the biggest expense you have. It comes in the form of a weekly check and in the intangible form of customer satisfaction and word of mouth.
I applaud you for caring for this young man and wishing success to him. I abhor you for coddling this man and suffering the anguish you have endured. It has taken me years to surround myself with the right people. If I feel like "I am trying", they are not the right people.
I know you have a good name in the business and are well respected in your area, so I want to congratulate you you for doing the right thing. Giving the lad the rope to hang himself. And that he did.
So well stated.
Nepotism is real- his mother, step dad work here...and I foolishly also let that be an excuse or at least to influence me way too long.
We do not get what we pay for, what we want, or what we expect from others- we get what we tolerate.
You are so correct about human capital. People are so much more expensive than all the materials and services we use out here.
The trend today is “I am here, therefore I should be well paid.” Also these people are the exact same ones that talk to each other about these things so once one of them makes a little more money the rest of the piranhas swim in.
This kid is essentially out of control. Bad.
Talent? Yes. Ability? Yes. But I know homeless people that have that. This young man really did have the potential and the father in me wanted so bad to see him rise above his upbringing.
But let me tell you guys one thing he did-
He brought a guy into the company that had worked very hard for a concrete pumping company and had topped out at $15 an hour.
This kid is on the job at 7 AM every day and he brings it.
I sat down with him today and went over what he can be making immediately and listed the responsibilities that he would be given to do that, And how that would be monitored and when he could expect bonuses and raises. It is amazing the difference of somebody who has really got out here and paid the price and sees the reward they earn, vs. entitlement. He was all in. And what I really like about him is he was all in before that.
As contractors we are in a dangerous age- It’s really not that you can’t get people to work- It is the fact that many people are more than willing to work or show up for a paycheck but they don’t have close to the skills they need or that we need.
A lot of them don’t even know how far off base they are.
I’m going say another thing that really scares me- There are also young people that will come out and tell you they don’t want to bear the responsibility of being counted on to produce. Boy that is living small. No future in that.
And I address it quick-
I had one guy who mentioned to me that I seemed kind of concerned about his performance- “uh, You don’t know what you’re doing.”
The right people are near effortless to work. You can just point. They will do a good job whether you were looking or not. They solve problems. They notice things you don’t. And they have your back with a client. Those are the ones that the money needs to go to. And they can bring some in for you to share.
Thank you for your honest post Duck, this is not the first time you have impressed me with your broad viewpoint, approach and realism. I am convinced that you are an exceptional person well worth listening to.
Your story also brings to mind is something that I’ve done over the years that I really prefer to do and that is give performance bonuses-
I like that much more than a pay rate that is out of scale.
Don’t get me wrong I want people to make a livable wage- But I also really need performance. In construction people can turn that on and off like a switch.