Employees not happy I earn more.

LegacyUser

Hi,

I own a business (Web based software solutions) and some of my employee take issue with the fact I earn more than them. I think the real issue they have is taking orders from a boss who is younger.

I'm 31 and have employees who are 10 - 15 years older. There brilliant, I can't afford to loose them. I think I pay them well, and look after them, but they still feel bitter that I earn more, despite the face I took the risk to leave my job, and start this company.

I'm the MD, and head of product/technology. I manage the products, do all the dealings with clients, have final say over what we produce. (Basically my decision on all aspects is final).

Now here's the money part.

We have been in business 5 years. 2016 Profit was about 500K, (5M Revenue).

My lowest paid employee is 60K, my highest is 90K.
Interns earn €15 P/H

They get tea, coffee, breakfast and lunch. Can take holidays at short notice. If they need additional holiday days they will get them. 2 weeks christmas, 3 week summer, 2 additional weeks. If they work saturdays they got paid extra. The above is salary mon - fri 9 - 5.

There issue is I earn 100K. I pay them a bonus every year depending on how the company is doing.

What do I do.

davo10

You tell them that they work for you. That's it. It's your business, you took the risk, you have the responsibilities and hassle that goes with owning that business and employing people. They are not partners, if they want to be then they can buy into your company for say €1m, my guess is that they wouldn't take the risk.

I have experience of what you are feeling, over the past 20 years I've had staff work for me who were older, more experienced, more qualified, but not for one second was there ever any ambiguity about who is in charge or who owns the business. I have allowed some experienced staff who have been with me from the start to become partners, but their share is minor.

Op, you have to grow a pair. The likes of Zuckerburg and the Collisons were in their early 20s when they formed companies, to succeed you have to be driven, single minded and at times you have to show that you are the one in charge, if they don't like that then they tough.

Tell me how

Why on earth do they know what you earn?

No good could ever come from a business owner telling their employees what they themselves earn. If it's less than expected, they won't believe it, if it's more they'll think it's undeserved.

Tigger

Tell me how wrote: »

Why on earth do they know what you earn?

No good could ever come from a business owner telling their employees what they themselves earn. If it's less than expected, they won't believe it, if it's more they'll think it's undeserved.

It's a company you can look up the wage bill I think

Wanderer2010

OP, im curious as to how someone who seems, and I mean this in a nice way, a sensitive and soft person, managed to gain some success at such a young age. For me, business deals are only for the most ruthless human beings who put money above everything else. You worrying about what your employees think of you is at odds with the drive someone of 31 would need to get where you are today?
To answer your question, do nothing, You are already doing MORE than enough in terms of benefits and holidays etc. If you do catch someone making a smart comment, have a quiet word with them and tell them that you wouldn't want unhappy employees and if they aren't happy there, you will help them to move on. That will shut them up.

Bushmanpm

If your staff earn between 60-90k and you earn 100k there not exactly a gulf between you all. Couple the 90k earnings with their bonuses and they're not too far behind you!
YOU are the boss, YOU started the company, YOU took the risks, I pray it doesn't but if the company ever went tits up, the staff lose their jobs whereas you would probably lose everything.
If I worked in your field I'd find you an ideal boss to work for!

Cloudio9

I'm calling BS on this thread.

Avatar MIA

Congrats on the success OP. Fúck the begrudgers!

Re advice, no one (apart from some crank maybe) will give you any different advice from the first number of posters.

Ask yourself this question. How do they know what you earn? Did the person doing payroll blab or did you tell them at the xmas party? *

Either way, you should be earning significantly more than the the no risk employees. IF they can get paid better elsewhere then you may have a problem, otherwise...

But, you may be underestimating your income. You get the benefit of your salary AND the retained profits coming into the company. You might want to tell them that if you REALLY want to piss them off :pac:

edit * Director salaries are now disclosed in filed accounts. Is that where they are seeing the info?

tedpan

They're, there, their

Avatar MIA

tedpan wrote: »

They're, there, their

Or more appropriately...

Loose lips sinks... software companies

Hannibal_Smith

I think you have to get used to be in a boss. No matter how cool or kind you are, you are still the boss and people will think they know better than you or should be paid as much because they know your job better than you do.

Fact is, you're the boss. If they feel they should be on the same money as you, let them go start their own business.

I don't know what your experience is management wise, it sounds pretty basic. There are management courses you can do to improve that. Might be worth looking into.

Congratulations on your success!

beauf

If they are still there they can't be that unhappy.

RobbingBandit

Ah the Internet where lies become realities

bmwguy

Tigger wrote: »

It's a company you can look up the wage bill I think

You might find abridged accounts but ot individual salaries and wages.
Your wage is between you and your employer and revenue. And maybe an accountant, advisor or a lender if you choose to tell them. And anyone else you choose.

I wouldn't imagine employees would be someone I would choose to divulge my wages or wealth too. I think this is a wind up.

Sleeper12

OP you will learn as you go on. Employee's should never know what you earn. They won't want to hear your problems on quiet weeks. Back in the 80s there were weeks when I paid all my staff and had nothing left for myself.
You need to keep your private things to yourself

myshirt

You are doing very well to have grown a business to that level of profitability in 5 years and with that cost profile.

I'm an accountant, I don't work directly with your type of business, but my friends do, and a company like yours with that profile is unheard of.

Well done to you. In terms of managing up, try to develop a relationship of respect where age is not an issue. Work collaboratively and thank people. Use the word 'we'. Habe nights out, or lunches out. The better the team get on the happier people are at work. You have to be genuine with people, and not create this boss employee culture. You are no one's boss, you are their employer.

beauf

myshirt wrote: »

...a company like yours with that profile is unheard of....

Probably still is.

dbagman

adasdff wrote:

My lowest paid employee is 60K, my highest is 90K. Interns earn €15 P/H

adasdff wrote:

They get tea, coffee, breakfast and lunch. Can take holidays at short notice. If they need additional holiday days they will get them. 2 weeks christmas, 3 week summer, 2 additional weeks. If they work saturdays they got paid extra. The above is salary mon - fri 9 - 5.

adasdff wrote:

There issue is I earn 100K. I pay them a bonus every year depending on how the company is doing.

Where do i send my c.v. ??

Berserker

Bushmanpm wrote: »

If your staff earn between 60-90k and you earn 100k there not exactly a gulf between you all. Couple the 90k earnings with their bonuses and they're not too far behind you!

Forget about bonus payments, there isn't much of a difference between 90K and 100k after tax. Also, I would love to know how the employees found out how much the OP earns. Also, why are you so generous when it comes to annual leave OP?

jimmycrackcorm

Berserker wrote:

Also, why are you so generous when it comes to annual leave OP?

For a software business where people are the key to producing, good foray benefits can matter quite a bit. Especially when you earn a fairly good income.

Still I don't understand the resentment, after all the employees can go and start their own business and device how much they want to pay themselves.

Avatar MIA

Berserker wrote: »

Also, I would love to know how the employees found out how much the OP earns.

Salaries to company directors are now specifically listed even in abridged accounts, so for small companies it can be found out what the owner director earns.

However, OP possibly a spoofer.

srsly78

Salary is irrelevant compared to the huge amount of profit.

CruelCoin

adasdff wrote: »

Hi,

I own a business (Web based software solutions) and some of my employee take issue with the fact I earn more than them. I think the real issue they have is taking orders from a boss who is younger.

I'm 31 and have employees who are 10 - 15 years older. There brilliant, I can't afford to loose them. I think I pay them well, and look after them, but they still feel bitter that I earn more, despite the face I took the risk to leave my job, and start this company.

I'm the MD, and head of product/technology. I manage the products, do all the dealings with clients, have final say over what we produce. (Basically my decision on all aspects is final).

Now here's the money part.

We have been in business 5 years. 2016 Profit was about 500K, (5M Revenue).

My lowest paid employee is 60K, my highest is 90K.
Interns earn €15 P/H

They get tea, coffee, breakfast and lunch. Can take holidays at short notice. If they need additional holiday days they will get them. 2 weeks christmas, 3 week summer, 2 additional weeks. If they work saturdays they got paid extra. The above is salary mon - fri 9 - 5.

There issue is I earn 100K. I pay them a bonus every year depending on how the company is doing.

What do I do.

No software company on earth offers all staff 7 weeks and stays competitive. Let alone the money issue. I'll bite anyway...

None of their goddamn business. The big job comes with the stress, responsibility and risk. Someone earning 60k minimum, and they're ****ting the bed morale wise? pffft, on yer bike.

tedpan

CruelCoin wrote:

None of their goddamn business. The big job comes with the stress, responsibility and risk. Someone earning 60k minimum, and they're ****ting the bed morale wise? pffft, on yer bike.

The OP is long gone..

CruelCoin

tedpan wrote: »

The OP is long gone..

Not posting !/= not reading

Avatar MIA

CruelCoin wrote: »

Not posting !/= not reading

He's possibly banging off loads of replies, but responses can't be seen because they've not been approved by mods. But, I doubt it.

LegacyUser

Thanks for all the replies.

I have spent the last hour reading over them.

From what I gather, I need to tell them to accept it, or get ****ed.

and btw all the facts are true. 10% profit is not madness.

Berserker

CruelCoin wrote: »

No software company on earth offers all staff 7 weeks and stays competitive. Let alone the money issue. I'll bite anyway..

It's an unusually generous amount of leave for the private sector. I work in the public sector, senior grade, in software and we don't get that many weeks a year.

jimmycrackcorm

Berserker wrote:

It's an unusually generous amount of leave for the private sector. I work in the public sector, senior grade, in software and we don't get that many weeks a year.

From what I hear of people working in IT in the public sector every day is a half day holiday

adasdff

adasdff wrote: »

From what I gather, I need to tell them to accept it, or get ****ed

You wouldn't even have to do that if you were discreet about your salary. It's none of their business and I can't fathom how they know it.

davo10

adasdff wrote: »

Thanks for all the replies.

I have spent the last hour reading over them.

From what I gather, I need to tell them to accept it, or get ****ed.

and btw all the facts are true. 10% profit is not madness.

No you do not need to get them together to tell them this, you do not need to tell them anything. The next time anyone of them raises the subject, you tell them that it's your company, your risk, none of their goddamn business what you earn. When you put it bluntly to one, he/she will tell the others, trust me, they have it good, it'll never crop up again. Pick the ring leader or gobbiest one and say it in a "say that crap again and you are out the door" tone.

davo10

[Deleted User] wrote: »

You wouldn't even have to do that if you were discreet about your salary. It's none of their business and I can't fathom how they know it.

Jackie I suspect they counted up what they earn and deduct it from what the company earns and assume that the balance is the ops salary. People often assume that you are making a fortune and all profit goes into the owners pocket to spend as they wish. In reality that is not how limited companies work of course, the owner cannot dip into company bank accounts as they please.

davo10

davo10 wrote: »

Jackie I suspect they counted up what they earn and deduct it from what the company earns and assume that the balance is the ops salary. People often assume that you are making a fortune and all profit goes into the owners pocket to spend as they wish. In reality that is not how limited companies work of course, the owner cannot dip into company bank accounts as they please.

You may be right Davo, it may just be a back of a beer mat calculation. But I get the impression from the OP's post that they KNOW what he earns.

Furthermore, any company where an employee feels comfortable enough letting their employer know that they have an issue with what he earns is dysfunctional.

I've worked in places like this where the boss is either (a) too indiscreet or (b) wants to be your friend more than he or she wants to be your boss and it's a recipe for disaster.

There is definitely something wrong at the top here.

CruelCoin

Deleted User wrote: »

You wouldn't even have to do that if you were discreet about your salary. It's none of their business and I can't fathom how they know it.

Presumably someone is doing his payroll for him, and said person has loose lips?

Or he left payslips / bank statements lying around, or xyz. Any number of ways they could have found out.

The only thing that matters it that it's not their business and they had no place bringing it up at all.

My own lads tried that with my brother and i a few years ago. Your "say that crap again and you are out the door" tone fixed that sharpish.