Mike AndesFounder, Augusta Lawn Care and Homeworks · Founder of Homeworks and Augusta Lawn Care

millionaire REFUSES to give out raises

19 Aug 2022 · 0 min

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A short YouTube transcript excerpt of a conversation where Mike Andes responds to criticism for not giving raises over four years. Mike explains their pay-for-performance model: employees receive a percentage of the labor revenue they generate, so raising prices effectively increases employee pay. He says total compensation paid to employees rose by more than 35% over the past four years despite base pay not being increased and that they added benefits (healthcare, paid time off, other benefits) which provide additional compensation.

Questions this video answers

Over the past four years.

By more than 35% over the past four years.

Hey Mike, people on Facebook are upset because you haven't given your employees a raise in the last four years. As a long care millionaire, why haven't you done that?
Yes, the clickbait title is that greedy millionaire does not give any raise for four years. Here's the truth of the matter. Our actual hourly rate that was paid out to the employees, the amount of compensation went up by more than 35% over the past four years. How is that possible? We use what we call pay for performance where someone gets a percentage of the labor revenue that they earn for the business. Which means if we raise prices we're effectively giving increase in wages to our employees. We didn't increase the base pay but the amount of money they're making is still going up and it's going up faster than inflation. And we added benefits like health care, paid time off and other benefits that they get extra compensation for.
Thanks Mike.