Pay Your Employees Well

In today’s video, Matt reviews how it can be costly in many ways if you don’t pay you’re employees the best you can. Matt agrees and goes into a little more detail as to why you should. Check out this video, especially if you’re best employees keep leaving for better pay.

There are tons of people out on social media giving business advice. Some of it is good advice, but most of it isn’t good. In this series watch CapForge’s owner react to different advice videos. He’s an expert in all things business and has 20+ years of experience under his belt. Some of the things he reacts to might even surprise you!

Video Transcript: 

Business Advice Video:

If your best employee would leave for a 20% pay increase. It’s likely going to cost you the same 20% pay increase to hire equal or greater talent. You might as well pay your best employees more than what it would cost for you to replace them, because not only are you going to have to retrain the new person coming in, you’re also going to have to wait months

Matt’s Review: 

I think that’s good advice. If you’re keeping somebody who’s amazing, who does all kinds of proactive things for the business, treats it like they’re the owner, is a key part of keeping the business running day-to-day. But you’re trying to minimize how much you pay them and cut back or not give an appropriate raise, or not really compensate them for the value that they’re bringing to the business. You’re shooting yourself in the foot. You’re going to have them leave sooner or later. And the person who steps up to take their place, if you’re hiring internally, may not be half as good. And if you’re trying to replace what you just lost, you’re going to lose time. You’re going to lose money. And you may have to pay a significant premium to get somebody equally good. So I agree. Figure out the value of the people that are working for you and pay them accordingly. Even if it means you make less. Ultimately, you’ll do better by building a great team and increasing the size of the business than you will by trying to shortchange the people who work for you. Keep a little bit more today, but ultimately, never be able to grow or not have the best people or keep having turnover that continually slows down the process of growing because you’ve underpaid, underappreciated the talent that you have around you. And likewise, hiring somebody who’s willing to work for less than somebody who would do a great job but would cost more is just a false sense of economy. So I completely agree with this. Make sure that you’re giving the people who matter the most to your business the best treatment that you can afford. Even if it makes you earn less in the short term. Because in the long term, it’s going to way more pay off than the few bucks you can save by underpaying somebody, not providing the raise or the bonus or benefit or whatever it is that they’ve earned working for you.