At your limit???

Discussion in 'Business Operations' started by Gutterball, Feb 1, 2006.

  1. Gutterball

    Gutterball LawnSite Member
    Posts: 8

    we have 2 foreman that are at there pay limit. the question is do we give them 'cost of living' raises, none at all, or a token 1% raise????
    they are expecting to see the minimum cost of living raise, whereas a 0 or 1% increase means for all practical purposes they will effectively make less money than last year.
    what say you????
  2. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    are you at the highest limit to the amount you can charge your customers for your service(s)?

    DUSTYCEDAR LawnSite Fanatic
    from PA
    Posts: 5,137

    0 or 1% increase means for all practical purposes they will effectively make less money than last year.
    oh well life sucks take it or leave it
    ill ask what r they tapped out at pay wise?
  4. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    Personally, I wouldn't insult someone with just a 1% pay raise:nono:
  5. out4now

    out4now LawnSite Bronze Member
    from AZ
    Posts: 1,796

    Depends. Do you really want to hire some new foremen?
  6. Randy Scott

    Randy Scott LawnSite Bronze Member
    Posts: 1,915

    Can you add more to a retirement package? Any health insurance help? A bonus for quicker, better production? Perhaps additional days off with pay. Tickets for a sporting event.

    Maybe things can be done to add value to their job without just a standard pay increase. They get something of value to them ,yet doesn't cost you as much as just a set pay raise.

    Our economy is not necessarily going in a good direction. The unbelievable increase in heating fuels and electric costs, fuel itself, auto and health insurance, everything is really starting to get out of control and many businesses just will not have the money to hand out to people just because they have spent another year with the company. Times like this is when you need to do some more personal conversations with the guys and tell them how it is. There are times, which we may be approaching, when it's going to be all you can do to just survive. They need to understand this. Ask them for suggestions on how to make the company more money. This in return will go back to them as well. It's a tough situation but only so much can be done.

    When it's all said and done, a foreman's job is going to max out. If they want more, they may need to pursue another career option. Plain and simple. I have given my guys an idea of what they may cap out at in the future. If that's not good enough, they need to move on and educate themselves in another field. If they think it's so easy or not a good enough answer, let them start their own business. They'll see how it is and the situations that arise.
  7. Gutterball

    Gutterball LawnSite Member
    Posts: 8

    As in other business sectors, what you say is SOP. This was my feeling also. Why should the lawn industry be any different? This is also why, in your own words, people move on.
    In contrast, I can see the suggestions of the other posts.
  8. Team Gopher

    Team Gopher LawnSite Platinum Member
    from -
    Posts: 4,041

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    Hi Gutterball,

    I would think the longer these people work with you, the more valuable they should be to you. It is a lot tougher trying to replace a known quantity.

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  9. PROCUT1

    PROCUT1 LawnSite Platinum Member
    from TN
    Posts: 4,909

    Look at most of the other jobs in the country, they're cutting raises, bonuses, and most other benefits. The economy is in the toilet. You have to do what is best for your business.
  10. out4now

    out4now LawnSite Bronze Member
    from AZ
    Posts: 1,796

    No it isn't. Just ask the weazel that was on TV the other night telling us how great things are.

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