Mike Andes says paying workers an extra $2 to $3 per hour costs far less than replacing them. High turnover can cost $50,000 per person. In seasonal outdoor work, better wages keep crews from taking winter retail or delivery jobs elsewhere.
$50,000
Two or three dollars more per hour
Let's say you burned $50,000. If you took two or three dollars more per hour and paid that to your team, you'd spend a whole lot less than $50,000. And you'd be able to increase their wages so that when they are there, they're incentivized to be there more. And they'll want to make sure they come back to your place of work after spending the off season working someplace else. And a lot of times, if you're doing outdoor services, your crew actually would rather work inside. And it's not hard to get a retail job or delivery job during the winter when there is the retail rush.
