December, 2006

Maxed Out

When long-time employees hit the top of their pay range, how do you motivate them to stretch?

By Tom Fife

What can we do when we have good people who have “maxed out” their pay for the position they are currently holding? I hear this question frequently, especially when I am talking about how to perform a proper review. It seems that leaders across the land are frustrated and could be de-motivating their good, long-time people, who are earning the highest rate the market will bear for their particular job. It makes the review day no fun for anyone if the focus is only on money.

A creative and proactive approach would be to ask: what responsibilities can the workers take on or what new skills could they learn that would create a win/win for the company and themselves? The options are many.

For example:

In the Yard:

• A yard person could learn proper receiving procedures and help out, or even become an assistant, filling in for absences or during busy times.

• We all know how helpful it is to have workers who can drive a truck when necessary. Employees who have a Class B CDL would be worth more to you per hour just to have in the event of an emergency, so you offer a premium on top of their salary to encourage them to get one. Also, learning your point-of-sale software would enable employees to take over on the sales counter when needed. Teach them how to invoice the orders.

• How about an assistant yard foreman position, a checker or a position in one of the shops? Could an employee take charge of culling and putting returns back into stock, or of the dunage and DOG pile?

Drivers could:

• Obtain forklift certification for helping in the yard or in loading trucks.

• Be a substitute checker.

• Upgrade their CDL.

• Learn the dispatching duties or be trained in the shop.

• Learn to build loads.

• Perform unscheduled pick-ups of merchandise returned from the job site.

• Wash trucks and perform light maintenance.

Counter sales staff could:

• Learn estimating.

• Fill in as checker.

• Learn computer functions above the point of sale.

• Learn pricing and how to increase margins.

• Learn the yard functions.

• Get forklift certifications and/or a CDL.

• Handle the phone system during breaks or absences.

• Undertake any of the training or preparation required for outside sales.

Here are a few ideas that work for any area:

• Mentor programs put your best people to use training the new folks into the operation and culture.

• Employee advisory boards help staff groom and grow their skills.

• Suggestion programs offer an opportunity for employees to earn money in exchange for a cost-saving suggestion. I love to give half the money saved for the first year to the employee.

• Offer a stipend for employees to learn Spanish; reverse the incentive for employees who need to hone their English.

• Conduct a benefits analysis to explain employees’ true earnings.

We want to find a path that challenges, empowers and involves our long-term, trusted workforce. It’s important to think outside the box and remember that a win-win is always possible when dealing with maximum pay ranges for any position.

Extra pay should be earned for new training, responsibilities, education or job functions. The employer reaps the extra value, loyalty and trust from a proven good worker. Win-win!!

If I can help, just holler.