How exactly do you pay your employees? If you’re like most companies, seniority and number of years in the company are two major factors in determining who gets paid what. But for Scott Fay, partner and CEO of Treasure Coast Irrigation and Rood Landscape in Hobe Sound, Fla., how long a person has been with the company doesn’t bear nearly much weight as the value they bring to the company. Fay says he has “three laws of how to get paid” in his company.
1. The value you bring to the marketplace
2. The number of people you serve
3. The difficulty that it takes to replace you
In fact, the only way that he recognizes employees who have been with the company for a long time is with assigned parking. “We want to recognize you for being with us a long time, but not in how much we pay you because that should be based on your value,” Fay says.
“We have 28 special parking spaces for the 28 people who have been with us the longest. But because we base salaries on value, we have people who have been with us for less time but make more money than some longer-term employees. Some of our techs have the best parking spot and make the most money and that’s because they are hungry and want to be the best. It’s not because they’ve just been around the longest.”
Fay says that it’s a common business concern that employees “lose their sizzle” as time goes on. But he believes that shifting the emphasis to value-based salaries encourages employees to stay on their game. Fay adds: “We want people who are hungry for us to be at our best as a company and therefore are at their best.”