Thursday, April 18, 2013

...The Cost of Hiring Good Employees






“I don’t pay good wages because I have a lot of money; I have a lot of money because I pay good wages. – Robert Bosch

I was struck by this quote and started thinking about how the small business owners we work with can be guilty of trying to pay wages that are too low.  Small business owners sometimes think too much of the bottom line when thinking about salary for employees.  It takes a couple of low paid employees for the owner to realize that they are getting exactly what they are paying for. 

I have worked with a business owner like that. She wants her company to succeed and needs the employees to help her achieve the goals set, but hasn’t been willing to pay the salary it will take to find qualified, trustworthy staff.  After several employees who just did not have the critical thinking skills she needed, she has come to the conclusion that bumping up the pay will help her hire the right employees. 

Now, it’s easy to say that money isn’t everything.  Of course a job isn’t all about money, but paying the right salary for the job requirement is important. When you pay less than you know the industry is asking then sometime you end up with people who  don’t have the talent or skill set you need, or who move on to a higher paying job the first chance they get. 

So when you are ready to hire, look around you and see what the going rate is for the type of employee you need to hire.  Pay them a decent salary – if there are any benefits you can offer, sick days, vacation days, holiday off that helps with job satisfaction too.  

It may not be easy but the cost of rehiring employees can be high plus the time you go without the employee in that position. 


Suzanne Cormier
Executive Director
BizWorks (Small Business Incubator)
Follow Suzanne Cormier on Facebook and
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