| Are you a victim of the peanut monkey syndrome? |
What happens in a lot of small businesses is that the owner sees the employees as a cost rather than an asset and isn’t prepared to make what often amounts to a small additional investment that can make a real difference in their life. A good way to look at this is to analyze the additional value the increased cost brings and use that as the basis of an ROI calculation. For example: If I am prepared to pay $30,000 for an assistant, I should look at what additional quality I would get if I paid $35,000 and focus exclusively on what I get for the extra $5,000. If it frees my time to do work at a higher level, the $5,000 can soon be earned back; if I end up with a long-term, effective employee my returns could be enormous. The extra $5,000 is really an investment and that is how I should evaluate it. I’m not arguing for overpaying people – just suggesting that the sometimes raising your sights higher can make a big difference. It is sometimes necessary to “reach” a little and accept that you are paying the higher salary anyway – just in the form of turnover costs or having to do more yourself because you have mediocre employees. Put simply…if you pay peanuts you will get monkeys.
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