I have a small business that I have worked for the past 25 years and it's been very good.
I've had my share of good and not-so-good employees in that period of time.
The latest guy that I have working for me is really a great guy, but he tends to break a lot of things in the course of doing the repairs on the cars that he works on.
I've always assumed that the fair deal in a situation like that is that I would pay for the cost of the broken part and he would put it in without me having to pay him for the time.
This time it's different. He broke a part that is only $30.00 but it takes 8 hours to replace. There is no arguement from him about the time taken to do the job.
The problem is my better half is wanting to take the $30.00 from his paycheck and I am having difficulty with that action. I've always assumed the "risk of expence" on the cost of the broken parts because I thought that was a fair deal from the boss. In return I expect a good honest days work from him and he gives it. In fact I am delighted with his dedication, and hard work that he does. He has almost as much experience as I do, working in exactly the same field as me. He really is a "right hand man" and I try and treat his as well as I possibly can and I don't want to make him wish he had a different job over this. He's worth keeping.

What I need to hear from other people in this situation is: "What do you do?"
I'm all ears here as I need a little advice.

Dan.

 

I've seen this scenario before...hurry...hurry...hurry, get the job done, bring on another. So far, his work ethics outstrip his sloppiness. But what happens when he breaks something really expensive?

Something to consider.

 

I'm NOT a business owner, so I don't have that inbred 'close to the buck ' feel. But I have met a few, and I understand the motivation.

Anyway, you're apparently paying this guy by the hour, and he's giving you free labor when he breaks a part -- which may not always be his fault. I'll grant you that he may be careless and/or clumsy.

How does this compare to working for a bigger outfit? Could he get a similar job for a reasonably comprable salary -- and not be out either time or parts cost? Or are you paying him far above what he could get elsewhere?

In any event, I'd tend to say eat the cost -- this is your deal with him. It would seem unfair to change the rules at this point.

You might consider changing his compensation to relate to your profit. At least a percentage of it. I worked for a huge company, and, even at my modest level, 10% of my salary was profit sharing. ( Executives were 50-80%).

My point is, if this guy is really almost a partner, you both might be happier sharing the risks/rewards.

ford2go

 

"He's worth keeping"

End of discussion............eat the $30.


In fact, while nobody can expect you to lose money, I'd consider compenating him something for his time. Maybe break even on this one job.

If he's like you described, I'd want to keep a happy working relationship.



Tell wifey we at FTE will take up a fund and get her the $30...

 

I echo what the above two posters said.

I am sure you aware how hard it is to get good help, and 30 dollars is rather insignificant in relation to how much it will effectively cost him.
Not to mention - this isn't the way you haven't done things in the past, such "changes in policy" I believe should be discussed with the employee before such events, and not a reactive type thing (it gets a better response from the employee)

However, ford2go brings in a good point regarding profit sharing (which is even more effective in a small operation).

Have a discussion with him, prehaps a reduction in base salary, but a percentage of the business profit (where by, if the business is running at its current profit he will get a small amount more than what he currently does).
That way, in the future there is a bigger, icing coated carrot in front of him not to make a mistake.
When we had our cattle station I encouraged my father to implement this - the way equipment/capital property got treated changed overnight.
People felt part of the business, one guy even did a small engine mechanics course out of his own pocket so he could fix the pumps on the farm to save us the down-time and expense of a contractor coming out.
All employees used motorbikes/tractors with far more care, they got serviced regularly. I also noticed a far more outwardly focus from the employees, now instead of 3 people looking for areas of improvement within the business (Dad, Mum and I), there was 12, the employees learnt more, enjoyed work more as a result...

Above all, be honest with him - if something is nagging at you, bring it up in an open honest manner with him, feel free to explain the issue with him, if he is genuinely a good employee he will understand, but don't dock him the $30 this time

 

fordtogo and BigF350 have very good points.
In my business I give a yearly review. I keep track of things like that, and discuss it when it is time for a raise. Profit sharing and a bonus program are good ideas. It is very hard to find good help. If you handle this wrong you could shoot yourself in the foot and end up with no help. Which is better?

 

There ya go, sit down with him, talk straight...tell him no more on broken "stuff" tell him he is the right hand man, build him up and give him clear expectation on what you want him to be.

 

By his being your right hand man, you should give him every consideration you would expect in a reversed situation. Ask him what he thinks can be done to reduce this problem. If you want to change the rules, do it when there is no issue on the table.
Good dependable help is not readily available, it may be one of those things you need to consider when discussing his compensation package. As the owner of a small business, I understand your situation.
Consider what it would take to replace him. Is it worth $30.00?

Bottom line, you have been self employed, successfully for 25 years. You didn't do this by making bad decisions. Whatever your decision, it is almost assuredly right.

 

In this case, $30.00 is a small price to pay if he is indeed a loyal dedicated employee...and you get along. He is already taking the bigger hit.

But, the two of you do need to sit down and try to find out why / how he has breakage issues. Besides the cost in $$$....if this is an acute problem, it has to affect your delivery time to you customers. Plus, while turning wrenches on a repair of his repair, he could have been making you $$$ on another project.

 

Gentlemen, I thank you very much for these responses.
The profit sharing idea is great and I most likely will impliment that, but need to learn a good business model in that area first. I'm a great mechanic, but a not so great administrator. Time for some homework.

 

I give profit sharing if the job is done on time and within budget. Not just a piece of the pie. They get one for being done on time and another if the punch list is done in a certain amount of time. It varies with the size of the job. Try to keep everything based on their performance not just showing up. I also pay for referrals or good leads.

 

Myself, I'd sit down and have a gentle, but firm, talk with the missus, about who's running the shop. I'm not being sarcastic. Sit her down, and say "Look dear, I know you mean well.......". Don't get snarly, or nasty.........Just make your case.

With that done, I'd then have another firm, but gentle talk with your right hand man."Look man, you're a good hand and everything, but this breaking stuff to fix it has got to stop"...........

Don't get mean or nasty with anybody...........Just state your case to both parties, and make it stick. Gently, fairly and firmly.

Gunner15a

 

If you're running such a tight margin that $30 will make a difference, then there are deeper issues that need to be addressed. If she's looking to punish the guy, well, he's not her kid to punish, and that is not the way to do it to begin with.

 

if you've always bought the part, and he installs it for free, this time isnt any different, Do the same

 

Kwik,

Re-read post #4 above. That's where I stand.

Good employees are worth their weight in gold, and you KNOW that to be true about this guy. Why else would you have tolerated his occasional breakage?

Nothing has changed, absorb the part.

BTW, I find your ethics to be rare in today's world. Most shops have the customer eat the part cost. You're obviously following the Golden Rule with your customers, which has served you well. Using that same rule with this employee buys you a lot of loyalty, which is quite uncommon in today's world, and will also serve you well.

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