Leadership thoughts on employee payroll
"Payday came and with it beer." Rudyard Kipling
Kenny, an Army friend of mine once was coaching a business leader on how to better lead his people. He and I were talking about this person's challenges discussing what we thought were the problems and solutions. One thing Kenny mentioned stuck with me. The leader told him that he wanted to assemble his team for a leadership huddle to share some guidance, training, and inspiration. It would be an after-hours event to prevent interrupting the business. One person in the group asked if they would be paid for this time. I don't recall the business leader's response but he did share that he took offense to the question. Kenny told him, "That is actually a very good question." He was right. I would have paid them.
My philosophy is this: People's time is their money so pay them for it. As a business leader of two small businesses, I strive to pay my people well. Indeed, anything I ask of them, I pay them for it. I don't watch hours like a hawk or question my people about their hours. I focus first on trust then I give them autonomy to clock in and out as they choose. I've even found times when the team was together BS'ing - not actually working where I kept them on the payroll. I know the true power of these moments - team bonding, and it is a worthy business expense. Yes, I review payroll as a responsible business owner but I remain on the side of generosity and trust. I have bookkeepers helping me watch this. They can ask me the cold hard questions about pay but I focus instead on caring for my people.
Payroll is the most significant expense for a business. My approach to it begins, as with everything, with good leadership. I care deeply for my people, looking them in the eye each day, checking in on them personally and professionally, appraising them, having hard conversations when needed, and doing the hard and enduring work to create a healthy workplace culture. The result is a team of engaged people, committed to our mission, vision, and values. This approach earns their loyalty. They can find better pay outside my organization in a bigger company, I know. I would pay them more if I could. I strive to be fair and to exceed what other like organizations pay. I hire exceptional people but I'm also keenly aware, what people desire from work is more than just pay.
This approach allows me to manage their pay - meaning control overtime when needed, if cashflow is tight and to manage pay raises based on contribution and performance. I'm transparent about the financial health of my companies. I don't shove this in the faces of my people to guilt them out of pay. Business health is my responsibility. I do this instead to make them feel part of the team - to promote ownership. If the business does well, we all benefit.
I promote vacations and I pay them while they are off. I do all this cognizant of cash flow, but I know it is important. If I start to question hours, to ask of extra things without pay, if I become cheap, I may save some money, but the business as a whole will suffer. I can't imagine an approach like that.
Indeed, every business, its cash flow and payroll plan is different so do this: Love your people. Lead them well each day. And pay them.
Make it Personal!
Rob
Rob Campbell