comments on employee wages and commissions 

  June 18, 2012

 

******************
comment on commissions / salary inquiry [from June 6, 2012 article]
***********
Ken
    I worked for my Uncle's business for almost 20 years.  I started in the summer of 1992 and was let go in October of 2011.  In that time, I watched the company grow from 150 stores to over 3,000.  We worked with one national client.  I had to fight for almost every pay increase I received.  Meanwhile, I pretty much RAN the company.  I was involved in almost every single area of the company.  Installations, service, monitoring, licensing, billing, etc.  I also negotiated an increase in our monthly monitoring charges (for which I received NOTHING).
You mentioned that your installer is very valuable to you.  His loyalty to the company should be noted as well.  Have you kept up with the cost of living increases that occur yearly?  I don't know what OUR techs made but I would think 65K is a decent amount, but I would think someone with his knowledge and loyalty to the company should be rewarded.  I am hoping other companies will chime in but I would think someone in his position could make closer to 80K but it all depends on the situation.
    It was hard for me to watch my Uncle spend money on a boat (45K) and a car for his son (25K) and know that I hadn't received an increase in pay for 5 years.  Then, when it was brought to his attention that our main client had become to count on me even more than my Uncle, he slowly removed me from my position and finally let me go after he told me I'd become "useless" to the company.  As you can tell, i'm sensitive to this issue.
    Good workers are hard to find and the fact that this guy has been loyal to you should NOT go unnoticed.  How about quarterly or yearly bonuses?
    Good luck, I'm not saying to blindly pay this guy what he asks for, but we all are trying to make as much money as we can.  Some of us are still LOOKING for jobs....
Best,
Chris
***********
Hi Ken
    I recently started my own company, my job before that was as a technician for a small alarm/telecom company.  As regards to salary, most technicians I have spoken too working for smaller alarm company's feel they are not making enough.  Most complaints I here from company owners is that it is hard to find good help,  I was making about 50k/year at the company which I was employed.  Many people I know, in NY, that work for the NYPD, Local 3, Con Ed, Iron Workers, Verizon, and so on make between 100k to 150k a year.  Many technicians are aware of these salaries.  From my experience, any technician that is good and has some common sense, will want to make more money and eventually move on to a job that will pay them better.  In some instances some of the really great tech's will even start their own business.   In my opinion, you should pay a person what they are worth.  If you want educated hard workers that have a head on their shoulders, your going to have to pay them a fair wage.  If you want to pay low wages, your going to get the bottom of the barrel.  It comes down to the old saying "You get what you pay for."
--Former Technician
*************
To Anon in Kansas,
    Your NICET IV man's salary and benefits have to be justified by his productivity. When it becomes a liability to have him on the staff, by virtue of low productivity, poor economy, etc., then it's fair to decline an increase, let him go or ask for some kind of give-back.
    The prevailing labor marketplace for that level of skill will also govern. If there is a shortage of his skills, you'll have to pay what the market will bear or risk losing him. Conversely, consider whether he's overqualified/overpaid for the work he actually does. Consider the scope of your company operations. If you do a lot of fire system design and have no one else on staff qualified or capable, (and don't forget to allow for contingencies) you have to either find someone else or do what it takes to keep him. If you only design fire systems occasionally, you could consider outsourcing it.
    There's customer loyalty and job-specific system knowledge to consider. Like most companies, your tech probably has valuable rapport with some percentage of your clients. He may also be the only one who knows where certain skeletons lie on complex installations. With regard to these issues your expensive tech has to be competitive within your organization compared to your other techs. If he has a definite edge, then he could be well worth what he's asking.
    Then there's the company loyalty issue. My opinion is that a long-time tech's tenure and loyalty deserve extra consideration for his having helped you build your business, perhaps for having endured a few tough times and perhaps for having declined various opportunities to become your competitor.
    As a former Navy man, I know that seniority counts for a lot. You tough it out through the early years doing crap and things gradually get more comfortable as you near retirement. You have more responsibility as you advance, but you handle it more deftly and you may even look like you're goofing off more, but in reality, you have more answers at your fingertips and you can dispatch tasks more readily, with greater confidence and with fewer mistakes. (If you in fact are goofing off too much, you stop advancing through the ranks.)
    If you're an independent owner and not a heartless corporate machine, then give him that consideration. "Enough" will be enough when your own earnings are embarrassingly lower than what he earns. Your negotiations have to end in a win-win arrangement because you don't want an unhappy and unmotivated guy out there face-to-face with your clients. When you're negotiating, keep in mind that most established employees will appreciate getting extra time off perhaps more than a cash raise. Make sure you have a non-compete clause built into your employment agreement. If you don't have it in there now, here's an opportunity to get it, because some future round of negotiations might be more adverse. (Do that not just with him, but all your staff and your subcontract arrangements, too.)
    Last, consider your own future plans and the company's destiny. Is your tech a good candidate to buy your company when you retire?
Anon
East Coast