https://www.linkedin.com/feed/update/urn:li:activity:7094335378974769152?utm_source=share&utm_medium=member_ios
“We were spending about $2,000,000 a year with a vendor. They had a great customer service rep we loved….and a production manager that crushed quality and lead times. 💪
All was good. 😀
These two rock star employees eventually needed a raise.
Management refused.
So they left.
As time went by, their replacements proved to be inferior.
Our service started to su-k.
Lead times grew long.
Quality suffered.
Our employees complained.
We vocalized our frustration.
Nothing got better.
And eventually that $2,000,000 turned into $400,000.
$1.6 million LOST.
All because this vendor refused to shell out $40,000 in raises. 🤦🏻♂️
Here’s the takeaway:
Focusing on numbers before people comes at a cost.
For this vendor. That cost was exactly $1.6 million.
Guys, it’ll always cost you way more to replace someone than to just pay them what their worth.
Stop nickle and diming.
When you’ve got a great employee, and they want a raise - PAY THEM.
Don’t overthink it.
There is nothing - NOTHING more important than keeping great people.
Stop worrying about right this second and your precious little budget - THINK LONG TERM.
Short sightedness on the NOW will leave you reeling in the end.
Great people are ALWAYS worth it.
Or maybe you’d just rather lose $1.6 million. 😬”