A QUESTION ABOUT COMPENSATION AND FAIRNESS

April 28, 2007: 

My boss asked me how much money I want to get paid.

We  talked about such a low amount it is disturbing to me when he is filling his bank account and yard with vehicles and anything he wants.

Please, any suggestions?

(no name -- only an email address)

Our Response

Maybe you could study these short videos and then have your boss watch those that you think are most appropriate:

1. Create Wealth for Employees

      The best businesses always look out for their people first.

2. Learn to leave

   That is not the only place in the world to work. Even if you love everything else, if you are not happy with your compensation, look around. See what you are worth to another business.

3. Keep employees happy

    You may start a business, but your employees will grow the business. 

4. Treat others like you want to be treated

    Over and again in the best businesses we have heard people cite the Golden Rule.  

5. Reward Commitment

   In many business we found the weatlhier the employees, the wealthier the company (and the wealthier the owner).  Stingy owners make for stingy employees and a stingy business.

What ever you do, before you go into a meeting to talk about compensation, be prepared.  You will want to put somethings in writing.  First, write a detailed job description.  If you decide to leave, it will be a service to the business.  You know what you do better than anybody else.  If you can, know your financial contribution to the company's bottomline.  Know the calculation for your G&A contribution.  Don't know what it is?  Find out!    

Now, look around the market and see what people in your position are being compensated within similar businesses. 

Prior to that meeting,  make sure everybody agrees that the points that constitute your work are indeed the basis of your compensation.  

There are over 160 videos about human resource management, the people part of business.  Look through the summaries of some of those videos and you will get plenty of ideas! 

You might want to begin with a special episode about the people part of business, "Build Your People and They'll Build Your Business."

Best wishes and good luck!

Warmly,

Bruce

Bruce Camber, executive producer,
Small Business School, Inc. (SBS)