Maria and Michelle discuss inflation and how they are seeing that people’s salaries are not aligned with it - people are living paycheck to paycheck, the rich getting richer, the poor getting poorer. Today, our hosts weigh in on what employees should be getting paid in these unique times and beyond, and also explore how businesses are determining starting pay and pay range for their employees.
Maria and Michelle start the conversation by advising business owners to carry out performance appraisals and by also discussing that pay increases need to be partially based on the cost of living. They talk about situational leadership and how it is essential for business, and also mention that the easiest way to set bigger policies for your organization is to look at what fits for the most part. Michelle addresses several reasons businesses have been announcing pay increases for all employees and why people are not being paid what they deserve. Maria discusses the economic disaster that would happen if everybody suddenly bumped up their starting rates and other matters to consider as businesses grow. She also explains how to compensate for the money that goes into the labor bucket which is what is causing the great resignation and the great reshuffle. They finish up by advising companies, HR, and leaders to use the SWOT analysis when dealing with inflation. As you will hear today, with inflation remaining a fact of life these days, companies need to address its impact upon their employees effectively if they want to move forward successfully together.
The Finer Details of This Episode:
Quotes:
“The intent of your action as a leader is irrelevant. How the follower receives your message is how they're going to behave.”
“If you want your workforce to give you the same effort and energy that they did when they were first on the job, or their first year or their first six months, then you, as an employer, have got to find ways to continue to make their job as exciting as it was when they first got it.”
“If you want people to do the job you want them to do, then you've got to find a style that meets their needs.”
“If the people that currently work for you get a pay bump, there are things that you need to consider from the skill set. That might mean their pay bump should be bigger than someone you are hiring off the street, who doesn't have experience.”
“Why would I work for $12 an hour when I can take a fast-food order on a very similar system for a different company, and make $5 more?”
“If you're paying out more in your biggest expense, then you either have to reduce supplies, equipment, machines, etc. or you have to increase the cost of the goods sold.”
“Even if someone loves their job, they also love eating and having a roof over their head, and knowing that their children have shoes and clothes. Ultimately, regardless of how much I may love you as an employer; may admire you as a leader, if you are unable to allow me a lifestyle that is comfortable enough that I'm not struggling every day financially, I'm probably going to leave you.”
“Focus solely on your people and pay because the two go hand in hand. Their opinions about pay impact what your pay ranges are, and your pay range may very well impact their opinion about your business.”
“Start asking yourself what is right for your business. It may be right that you increase the cost of your services or your goods. But that also means that you better bring in customer feedback to make sure that whatever your goods or services, your customers feel there's enough value in it for that increase.”
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