“[Consumers] know what everything costs,” Auten says. “If everyone’s charging $1,100 or $1,200 to do a job, you can’t come in at $1,300 because you have to pay for the health benefits.”
Despite offering nothing more in benefits than a little paid time off, Jones has managed to hold onto a reliable team. On his six-man crew are three lead carpenters who have been with him for 10, 12, and 18 years, respectively. Paying his men high wages, keeping them busy with challenging work, and treating them well, Jones says, has earned their loyalty.
“I’ve always tried to pay the highest amount that I think I can afford,” Jones says. “I tell the guys, I’m doing the best I can for you [given the company’s revenue]; if that’s not good enough, produce at a higher level.”
That Jones has maintained such a steady crew is likely a testament to the relationships he has managed to build with his employees, even without benefits.
It’s important to remember, says Krauer, the human resources consultant, that benefits are not a cure-all. If the company has more fundamental problems, such as communications or cash flow issues, employees may still be dissatisfied enough to leave.
“The business has to stay competitive; that’s the first priority,” Krauer says. “You do what you have to do to remain competitive and to maintain a solid and content workforce that’s loyal to you.
“Sometimes you have to spend money to make money. Part of the struggle for small businesses is to attract and retain. It’s the most expensive part of your business and it can make you or break you.” — David Zuckerman is a freelance writer based in Brooklyn, N.Y.