I’m thinking about hiring an employee and I’ve been pondering some issues. First off, let me ask both employees and employers how involved you let the foremen be in the numbers on jobs. Do you or they know how much money is in a job? What it was bid at, how much materials are, and how close to budget you are?
I’ve been considering coming up with a way to let the numbers determine my new employee’s fate. He’ll be coming on board already thinking he’s worth more than he’ll be paid. I don’t want to engage in the mind games of trying to convince him he’s worth less so I don’t have to pay him more. But at the same time I don’t want to give him more than I should at the detriment of the company. I want to be able to cost out a job and look back and say “this is how much we made, and you are consistently paying your way and then some, here is what you are worth, if you want more you’ll either have to perform more or get more performance out of your helper.”
So I’m thinking if he has a good idea of where he is performing (profit-wise) verses where he might want to be, he could motivate himself.
Do any of you see the pros & cons to this and what types of conditions would you put on it?