Originally Posted by GrassGuerilla
I have no idea why I'm still reading this. To summarize in no particular order;
1) insubordination in front of the crew. Deal breaker.
2) doesn't complete paper work. Deal breaker.
3) unprofitable. deal breaker.
4) lied about license. Deal breaker.
Must be a helluva laborer. At best, that's what your describing. With the above, we would be discussing retention, not a raise or a bonus. I still say gone. But since he seems to have some sort of leverage over you (compromising photos?) maybe offer a bonus based on crew profitability? If he wants to earn more money, he has to produce. Again, if he can't complete paperwork with a break even crew and work load what do you expect in a good season? Why should he improve if you give raises and bonuses for poor performance?
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If you really like the guy as much as you sound like you do, I would start with the above points as essentially a coaching for improvement as to help him further his potential future with you company.
Terminating is should generally be the last resort or used at times where the behavior is beyond repair IMHO because the cost associated with hiring and retaining quality employees is higher than most would give it credit for. Explain to him that if he wants to earn more, he has to be more of a leader, take a leadership role and that does not involve discussing wages in front of other crew members, it does not include non profitable work, involves being able to get the rest of the team to finish work in a quality yet profitable way which is done by communicating with employees, a area that you feel is not able to do yet.
Tell him that you are willing to pay it, but not until he has showed you that he can achieve those goals in a long term situation. Don't lose what you think is a good employee, until you have given him a chance to explain or improve his actions unless his actions are so severe in nature that he has to be fired.