The National : DRYCLEANER MAY AUGUST 2019
FIC THE AUSTRALIAN NATIONAL DRYCLEANER & LAUNDERER MAY JUNE JULY AUGUST 2019 How to give a pay raise that you can take back How to give a pay raise that you can take back? Wouldn’t that be some- thing. Being a man with a busi- ness mind and, at the same time being fascinated with the way that other indus- tries operate and all the while being a huge Red Sox fan, I at times found it puz- zling why baseball players command such high salaries. Studying this over the years, I have learned that it is a good investment for ball club owners to pay huge salaries. Frankly, no one would ever pay a player if there wasn’t a tangible ROI (return on investment). True, in some markets, ROI is impossible because there are not enough customers. Still, whatever the salary, an ROI is expected. It would frustrate me greatly when a player having a banner year asks for a raise, gets it and then performs poorly. Don’t you think that pay should be performance based? It will not likely ever be such in professional baseball, but can we make it that way in our shirt laun- dry? I think so. I came up with a strategy that I call “How to give a pay raise that you can take back.” Certain states, like California, can only dream about things like this, sadly. And union shops rarely have flexibility to pay based on merit, but many plants can benefit from these ideas. VALUE OF A DOLLAR I remember a very hard working young man in my employ many years ago. I’ll call him Willie. Back then, my company was some- where in between 1 shift and two. That means that I did not have the volume to have 2 eight hour shifts, or evenand8anda4. And my staff wasn’t interested in splitting 10 hour days 50/50 with another group. Therefore the only solution was to work the staff that I had. That’s a euphemism for long hours and overtime wages. All the while, we had to build sales to the point that we could run two shifts, or at least a shift and a half. Anyhow, Willie was a workhorse. For months, he was at his press station every single minute that my plant was operating. This meant he worked two 14- hour days, a 10-hour day, and a pair of short 8-hour days. He never complained. He never missed a day. He played well with others. Truly a model employee. One day, during a moment of unprecedented generos- ity, I called him to my office and after basically giving him a very positive perfor- mance review, I gave him a one dollar per hour raise. This was a very large increase. I don’t think I had ever given such a raise before or since. So what did I get for it? He started calling in sick on Thursdays. “Who’s dumber than me?”, I thought. To say that I was disappointed is the quintessential understatement. I guess Don Desrosiers ...
DRYCLEANER JAN APRIL 2019