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Secret Diary of an Entrepreneur

A London-based entrepreneur blogs for MT on life as a small business owner.

Secret Diary of an Entrepreneur: Money troubles   

Regular readers may remember a few weeks back that my slightly psychotic HR manager informed me, in hushed tones, that one of my salespeople didn't think he got paid enough. To which I naturally replied that salespeople always think they don't get paid enough, so if anything the reverse would be more worrying.

However (and much though it annoys me to admit it), from the moment she said it, it's been playing on mind. Admittedly this girl has never knowingly underplayed any potential HR flashpoint, but I couldn't help wondering whether this was something I needed to nip in the bud. The problem is, you see, this guy is very good. He's my best salesperson, and looking at the rest of them made me realise what a nightmare it would be to lose him. Unfortunately, he appears to be well aware of this fact.

I have to say, there is nothing I hate more about running a business than arguing with people over pay. However much I try and distance myself from it emotionally, however much I try to tell myself that it's all a question of negotiation and I shouldn't take it personally, I find it more draining and dispiriting than any other part of my job. The thing is, pay is so bound up with people's sense of self-worth. If you pay them less than someone else, they invariably think you rate them less than someone else - even if they're doing a completely different job.

In some ways, salespeople are easier. For a start, it's obvious how well they're doing, from how much they sell. And you can also make a huge chunk of their pay performance-related, so they only make a load of money for themselves by making a load of money for me. I can live with that. But it's always a nightmare conversation, because they treat it like a sales negotiation - however much you tell them otherwise.

‘The thing is,' this guy said to me over a beer last week (I'd taken him to the pub to soften him up in advance), ‘it's not really about the money.'

This approach is absolutely guaranteed to annoy me. With salespeople, it's always about the money. And if it's not, they're in the wrong job. ‘An admirable attitude,' I ventured. ‘So what is it: personal development? Flexibility? Leadership?'

Mammon politely ignores me. ‘It's really about how much I'm valued. But sadly, society only gives us the blunt instrument of salary to address this problem.' (he's always coming up with nonsense like this; I think that's why he's so good at cold-calling).

In other words, it's about the money. He eventually (after a bit more prevaricating) told me that he deserves a higher base, a more generous commission, and some options (though I strongly suspect he doesn't really understand what options are, only that at some point it might translate into more money).

So now the battle of wills begins. I'm pretty sure we'll eventually come to such arrangement - ultimately, I don't think he wants to leave - but I know for a fact that it will take a few weeks of painful, emotive wrangling to get there. Makes you realise why the Romans were so into their slave labour...

 

 

Published Sep 19 2008, 10:36 AM by MT Editorial

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