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You Can’t Overpay Good Help

My grandfather stole one of his best employees away from another job. The young high schooler was making 75 cents an hour. My grandfather offered him $1.05 to work at Toy House. He took it.

I still recall the big grin on my grandfather’s face when he told me the end of that story. The other business owner was furious and called him. “Phil Conley, you can’t afford to pay him $1.05!! What are you thinking?!?!”

Oh, but he could.

Toy House Birthday Party May 1974
My dad and grandpa are on the left in white. I’m the clown in the middle.

That was one business adage my grandfather lived by. You can never overpay good help.

Just yesterday I heard the same advice from none other than Roy H. Williams, aka The Wizard of Ads. He was speaking in a podcast and addressed the issue of how to find good employees in today’s market. (If you have to make an hour drive, this podcast will be the best way to spend that hour by far!)

Roy said there are two things you need to do to have a great team:

  1. Pay way more than the market price to attract better people
  2. Make it an attractive place to work to keep them

It’s that simple.

I know what you’re already saying. “But Phil, I can’t afford that. I don’t even pay myself.”

First, if you’re not paying yourself, go read this blog post from last summer. Second, start paying yourself.

Third, and most importantly, do the math. Ryan Deiss of The Digital Marketer said in the same podcast that the business willing to pay the most for customer acquisition will have the best customers. The same is true for employees.

The business willing to pay the most for employee acquisition will have the best employees.

If you have the best employees, if you have a full staff of rock stars, how will that affect your sales? You better believe they will go up.

Repeat and referral business are directly the result of your Customer Service. They are directly the result of your employees and their ability to rock your customer’s world.

They are directly the result of your ability to attract, hire, train, and retain the best staff.

Overpaying for good help creates an upward spiral. Cutting employee costs leads to a downward spiral. Don’t believe me? Just walk into any of the declining department stores and look around for someone to help you.

And before you go telling me Millennials aren’t the same quality of workers, I’ll counter with several Millennials I’ve hired over the years that will outwork anyone you’ve ever met.

Last month I did a presentation on how to Attract, Hire, Train, and Retain Millennials. You could sum up most of the talk like this …

  1. Pay way more than the market price to attract better people
  2. Make it an attractive place to work to keep them

Thanks, Roy, for saying what my grandfather taught me decades ago. It works!

-Phil Wrzesinski
www.PhilsForum.com

PS That young guy my grandfather hired was my father, one of the hardest workers I’ve ever known.

PPS The podcast with Roy H. Williams and Ryan Deiss is full of other great insights from two of the most amazing marketing minds on this planet. Normally you would pay tens of thousands of dollars to have an audience with either one of these guys. Here is the link to do it for free.

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