Don’t Short Change Employees
Your employees are your most important asset. While the primary mission of any business is to make money, we don’t recommend doing it at the expense of employees. In other words, holding employee wages down to boost short-term profits is usually a big mistake.
We emphasize looking at the long-term. Paying employees at levels that are not competitive is not a good long-term strategy for enhancing profits. It is critical that wage and salary structures be sufficient to attract and retain top people. Without excellent employees, the likelihood of success is not very high.
Ultimately the less competitive your wages are the worse your employees will be, meaning you get what you pay for. Poor wages are going to cause you to lose the good employees you already have and make it difficult to find more good employees.