To me that just sums it all up. They want the profits and fame that comes with increased performance, but they are not prepared to pay their dues and remunerate the people who can get them there.

This very much reminds me off my career as a chef. Despite working for some top restaurants with many accolades us the chefs got paid a pittance while the big dude cashed in big.

Funny thing is, without a chef there is no food on the table, therefore no patrons and no money. This happens everywhere unfortunately and might be a result of giving micro managers too much power.

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Yes – those Directors are quite mad aren’t they? In my earlier days at Rainbow, I always paid people more than I paid myself. Some months, I wondered if we were actually going to be able to get enough money in to eat, but you expect that in the earlier days of a business don’t you?

Hi Brett – Thanks. That’s complete madness and it probably happens in a lot of businesses. Mind you, I personally think my friend is best not going to work for them. He’s worked for one of the Directors in a previous business and there were some problems.

LOL Mrs M – It’s scary though. Many of these companies probably would feel better about spending more on a bit of worthless equipment.

Sterling – that is true. I guess we do create most obstacles with our own minds.

Hunter – it’s ridiculous isn’t it? I would much prefer to pay people on performance. I’ve paid some people far greater salaries than others and it’s because they earned the business more and never said “I can’t” when there was an emergency. Unfortunately – those types are few and far between where I live.

Clare – thanks – glad it made you feel better. My only regret was not doing it years earlier. And i would advise anyone in a relationship
with an ass..le to get out asap. It doesn’t get better and they don’t change – so you wind up wasting a lot of years of your life.

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My company pays consultants very well for what they do, in many cases, more than what the management would make. That’s a good thing.

All is not perfect where I work though – the employees who actually do development work often have 5-6 year old computers with smaller monitors. The upper level managers – of course – have the latest toys, but what do they do? Count beans. And most of the time you see them they are not at their desks anyway, but instead sitting in meetings sending each other messages via BlackBerry.

*sigh*

That’s life I guess!

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If it is, it must have been a sample of a certain type of person perhaps. But I suppose it’s worrying if it’s really true.

I don’t think people actually desire money as such. And I think people desire “stuff” and money is the route to that stuff.

But this kind of suggests that people want more stuff than their neighbours, and that’s more important, than simply being able to have more stuff.

The attitude of the directors who couldn’t stand a member of staff on more money than me is also unbelievable.

Why are they in business?

I’ve often been paid less or nothing at all compared to employees.

Their problem is that they are possibly missing the point about their business. They may perceive it as some sort of job, where because they lead it, it helps them maintain their status at the top of the tree.

I’m delighted if people are paid more. Highly paid people are usually paid well because they deliver more. And any business owner who desires more than a job, may be in it to one day sell it.

That means, adding value to the business. Which also means that in the short-term, it doesn’t matter what you are paid and whether that is more or less than anyone who works for you.

Those highly paid people may be making your company more valuable. They may be getting commissions for gaining new clients, and each client has a lifetime-value which under-pins the valuation of your company.

Or they may be brilliant at delivering a service which ensures clients never want to leave. Again, adding value to your business because people want to buy companies that has a loyal, happy client base, delivering profits which would give them a return on investment – especially currently – worth far more than sticking it in the bank.

BUT saying all of that, if you want a saleable business, I think it’s probably better to invest more in systems.

Companies that have too much value invested in key personnel are more risky. Because if those amazing people leave, the clients may well leave too.

If building a business of value is your goal, then you have to win clients who are in love with the service you can consistently deliver.

I am not saying people aren’t important – they are. And good people can work even better within an established system.

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I forgot to mention – they did offer him a commission, but because of the type of business it is (sales) he said it would be unethical to take it. He doesn’t want to be accused of selling to people who wouldn’t be right for the product and vice versa, because he is on commission you see.