July '18

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rv-pro.com July 2018 • RV PRO • 161 the market allows. As many of your workers as possible should be paid for the results of their efforts – not just for showing up. How is compensation set? Another great question to ask is: Who (or what) sets the level of pay? Do you pay based on the position? Do you pay based on the person? Their qualifications? Their experience? While those are factors, they are not clear enough by themselves. The market sets the level of compensation. It answers this question: How much do I have to spend in this market to attract someone with the necessary skills to accomplish the set of tasks demanded to fulfill this particular role? What does not set the level of compensation? For one thing, the person's last name. Being a relative of the owner doesn't guarantee a level of compensation. That's a trap I've seen many times over the years. Here's a corollary: The owner can get in an even deeper problem by trying to keep the pay even between a couple of his or her children who work in the business. Longevity is Not the Same Thing as Experience Having a certain number of years' experience is not, by itself, a factor. I recall a tech coming to me once, saying, "I have 10 years of experience. I deserve a raise." In one of my more inspired moments I had to ask the question if that tech actually had 10 years of experience or did he have one year of experience 10 times over. In the best plans, the answer is in the balance of experience and skills to fulfill a role based on the value placed by be market. Let me give you an example. My Daughter in N.Y.C. My younger daughter had said since family trips we'd made when she was young that she wanted to work in New York City. When she was a child, I took that with a grain of salt. All kids dream. Many kids change those dreams. She stuck to it. After graduation from the Uni- versity of Virginia School of Commerce, she moved up there. I thought that living in a place as expensive as N.Y.C., there would be a substantial compensa- tion package. Imagine this dad finding out that she would make less than $30,000 a year. A quick tally of rent and basic living expenses quickly led me to the understanding that her living expense would need to be subsidized. She went to work with two other bright young ladies in the public relations business. Within 90 days, the other two were gone and she got her first bump in pay. Her boss commented, "We just need to hire more like you." Through the struggle of those first few years, she watched seats around her in the office become vacant in the afternoon. But by the very next Savvy employers recognize that the market sets the level of employee compensation, based upon the ability to attract someone with the necessary skills to accomplish the set of tasks associated with the job. When pay plans properly motivate, it helps the culture to shift from one of entitlement to a performance culture. Pay should be for performance- based results to the greatest extent the market allows. " "

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