New to the forum - checking to see if anyone has ideas on this problem: I took over our family business last year (25 employees) and have realized that the majority of employees are badly spoiled. They were treated extremely well over the past 20+ years, given annual raises every single year without fail of between 50 cents and a dollar an hour each, and now accrue large quantities of PTO as well. I'm all for treating employees well and compensating them more than the competition to ensure we have the best employees on our side. However, I've begun to try to correct some issues - like reducing guaranteed overtime of 10 hours a week to 2.5 hours a week for all employees, and I've encountered fierce resistance and attitudes, which is expected. The real problem though now is that the employees are the best compensated by far in our market but they perform quite poorly due to the bad morale related to the cutbacks of some of the perks they've had. I'm not sure what to do to fix this issue except to entirely clean house, which is not ideal as I would lose a ton of valuable experience and knowledge of client accounts. Here are some of the compensation related issues I'm dealing with that are absolutely killing our bottom line: Maintenance crew foremen at $20 an hour pay (even though they don't have driver's licenses) Pay for a full day on all rain days even if they leave work at 10am. Many long term employees with 4-5 weeks vacation time a year. Guaranteed OT for all employees of 3 hrs a week in the winter and 10 hours a week in the summer. I had a senior foreman challenge me last week in front of the other employees when I changed one of these policies and I fired him, and am already feeling the loss of his experience. But I see no other option available unfortunately for these guys that feel like I'm screwing them by trying to turn around the company.