How not to talk about money

In a small business, an employee may bring great value to the operation, more than other workers. You want to reward them, but there's something you should never do when discussing pay.


If you're fortunate, someone steps up in the business and performs well, consistently. You're paying the person more than other staffers who come and go, more than some other long-term workers too.

You're not the only one who knows their value. He knows it too. Success means a paycheck for him, but probably a more substantial reward for you: nicer car, better clothes, actual out-of-town vacations.

Both of you want to keep working together, but your worker has reached the limit of what you wish to pay for the position. Conflict happens sometimes.

If you find yourself telling that employee you're paying him well, you've pretty much ruined the relationship. That may sound silly from the management perspective, especially since you have access to the books and he doesn't, but what he hears is this:

You provide no more value to me than what I give you.

And he may have you dead to rights on that as well. But there is that value he brings to work every day; how can you compensate for this without paying more money?

A lot of people want a better quality of life along with their work. When it's time to talk money, don't talk from the negative, or high-handed position, that you're doing your performer a favor.

Keep the discussion positive. Point out what you do provide, in the way of benefits, perks, anything additional to the basic pay. If there are extras to offer that still allow the completion of work at a consistent level, that's the time to do it.

You and he may have reached a point where money means the most, and he can get more of it elsewhere. Since you wouldn't turn down profitable business, expecting an employee to do so for your benefit makes no sense.

Whether you keep your top performer or not, how you treat them affects your future business. Someone who leaves to be successful elsewhere may be the conduit who sends you your next star employee.

Just don't be a jerk when money comes up. There's little respect for the small business owner who brags to employees about how much he's paying them, before driving his Mercedes home to drop off a couple of new high-definition TVs.