This is the simple explanation I gave to every employee that asked me for a raise.
E: Hey boss, I need a raise.
Me: I am paying you $15/hr. After paying Fed payroll taxes, unemployment insurance, workers compensation insurance, general liability insurance, vehicle and vehicle maintenance and insurance and a few other things. You cost me about $35 per hour. That's $ 70,000 per year. At 10% profit margin I have to come up with $700,000 of business just to employ you.
E: Yeah but I got bills and shit!
Me: Maybe you shouldn't have bought something you could not afford?
E: Man, you're making a killing and I ain't getting shit.
Me: I didn't hire you to give you a job so you could keep up with the Joneses. I hired you to make me money. I have ten of you that piss off for an hour or more every day. That's 10 hours a day and 50 hours a week. That's 2500 hours a year which costs me over $80,000 per year. How much of my time do you think it takes to drum up business for you and the guys to piss it away?
You want a raise? Get your ass to work and get your buddies to quit fucking off and I will give you a raise.
BTW, you just cost me $15 explaining it to you and every dollar you fuckers waist costs me time with my family.
theyll never get it...stop trying
i think its known i "make pills", ive chimed in before
350+ people several buildings...the whole nine
yes i make more than 15$ a hour and drive some cool cars
first, keep your eyes in your wallet not in mine..i dont look in yours do i
if your worth more, leave my business and go get more money somewhere else
if not stop whining and do a good job so when your employee review comes up your the one who gets the raise not the guy next to you. i say it to everyone who gets hired and anyone who leaves.
we arent friends we are friendly, i know you only laugh at my jokes because im your boss, and i know you curse me when i walk away
i did it too when i was younger
we only know each other because we need money, if not i would have never met you and you wouldnt have met me
BUT we are on the same team rowing in the same direction because if the company fails...we both dont have a job
leaving the workforce and skillsets out of it, and all the math Darn explained above (which is correct)
being a owner:
raise your hand if you want a line of credit that has a PERSONAL guarantee that means your house, car, back accounts, kids bank accounts etc
by the way that line of credit is X0,000,000.00$... we arent talking a second mortgage for 150K
then add in the payables for materials which ownership is on the hook for
just for shits and giggles add in that supply chain is fucked so im buying what i can when i can at a higher price (killing the margins on the product) and a uncertain delivery time (killing the production schedule pissing off customers) ... but your still paid the same every week correct?
"well the owners just go bankrupt and dont pay anything"...thats not the way it works when you make more than 30$ a hour.
ive put my whole life into this business, the employee uses me a stepping stone to make more money ladder somewhere else.
which is fine they should, but they dont have skin in the game like i do
i cannot and do not expect them to care like i do, again thats fine
if they want the same paycheck.. quit my place and start your own and get all the that comes with it
no one is stopping you except your the level of stress and work ethic your willing to put in.
believe me it was a lot easier when i was on the floor literally, working on equipment because i couldn't afford better crap.. not new... just not total pieces of shit
now im worried about writing checks for
$350,000 A DAY, yes A DAY, and where that money is coming from
to the guys in back a snow storm hits and they get the day off... "yeah this is great i get a 3 day weekend"
to the owner...i just lost .5% production (250 working days a year...100%) for the year
that 350,000$ in bills are still due for materials that i bought 2 months ago.
now i dont even have the production/sales because of that snow day to cover those bills... hope you have 350K sitting around to pay with, if not your not getting materials next time
oh, and i now have to pay OT to make up the production capacity gap, which makes the next few days of production less efficient and profitable kicking the can down the road.
and if that production is not able to be recouped because some equipment is a bottle neck and is maxed out in capacity ...that 350,000$ is GONE...never to be seen again...comes out of the business not your paychecks
someone used 1979 for reference:
who in 1979:
had 2 cars, possibly one lease
had cable and if they did had movie packages
had steak not chicken
had a few cell phones (a few really nice HI-FI stereos back then same money $1000)
ummm NO ONE
now who:
rolled paperlogs for heat because my father couldnt afford heating oil at times
took furniture from our neighbors garbage pile and fixed it up
what kid today is wearing hand me down clothes to school...not out to play
EVEYONE myself included
now people are pissed off that they arent getting paid enough but they have a decent cellphone and plan for 50$ a month, so does their wife and kid
my fathers boss told him that if my pregnant mother called him again during work hours he's fired... get back to work. guess what she didnt call until she went into labor.
do that today and the employee will go complain on the internet that their boss is a dick and prob sue them and win
want more money, take the risk if you think its worth it
want a raise, be the first guy back from break and lunch not walk out of the lunchroom when the bell rings
the bell is for you to start the equipment not to get out of your chair
350 people stealing only 1 minute 2-3 times a day = 1000 minutes a day
thats 5000 minutes a week = 83 hours
83 hours X 52 weeks = 4100 hours
4100 x 20$ a hour = $80,000 dollars a year just in payroll never mind the equipment that im paying for not producing and making money....for being lazy out of breaktime for 1 minute.
next time the boss walks through the lunch room at the bell and no one is moved yet
write a check for 80,000 and tell him to leave you got it covered
so when employees take advantage or fuck around, yeah the boss is a asshole
i dont want to be a dick and i actually try to treat my employees well, everyone has a family and their own shit going on
but thats what i go to bed with every night, as well as every other owner of a business...employees dont and never will understand the stresses involved.