03.15.07
Better Workers = Better Business
I worked my way through college by working in fast food restaurants. I discovered that some of the largest and most profitable chains were the stingiest toward the very people who made them their money. One of our smaller competitors, which was only in California at the time, was a company called In-N-Out Burger. In-N-Out was starting its workers at $6.00 per hour at a time when long-time employees of the larger chains were lucky to get even $5.00 per hour. As a consequence, In-N-Out had the best, most enthusiastic, hard-working, and productive workforce of all.
In one city, In-N-Out opened two locations a few miles apart, with “the Golden Arches” having a location about midway between the two In-N-Outs. Within a couple of years, the restaurant in between shut down. (It has since been remodeled and reopened.) No one else that I have ever seen has been able to do this–but no one else seemed to realize that they could have better productivity if they shared the wealth with their employees.
One of my college instructors said (back when minimum wage was below $4.25 per hour) that an employee who is paid below $8.00 per hour is not being paid to think. He also said that paying minimum wage to someone is like saying to them, “I would pay you less, but the government will not let me.”
If you can not afford to pay someone at least $0.50 to $1.00 above minimum wage, you can not afford to hire that person. After the 30 to 90 days that it takes for an employee to reach expected productivity, a small business owner cannot afford to have this person leave for a nickel or dime more per hour somewhere else. Even in fast food, it takes that long for most employees to become fully productive. After the person has finally reached the point where their labor is bringing in money for the business, it is better to keep him or her there than to start the process all over.
Remember, your employees are the ones that make your product and serve your customers. Take care of your employees and let your employees take care of your customers.
