Cheap versus experienced workers: People & Companies

I recently attended a roundtable with a local business group that meets monthly. The purpose is to gather a diverse group of businesspeople to exchange ideas, discuss workplace issues, offer recommendations and generally support the endeavors of each participant.

At the previous meeting, one member noted that, in light of a volatile market and the need to operate as inexpensively as possible, his company and many others have resorted to hiring less experienced, lower-cost employees while trimming the more experienced, higher-salaried employees. Although this technique may be necessary for some, lately we’ve been taking the opposite approach at our shop after securing new customer contracts for their critical components. We’ve been seeking candidates with skill, experience and the higher salary that goes with that skill and experience.

Upon hearing my colleague’s comments, my initial concern was I wasn’t following the logical pattern of these successful businesspeople and could be jeopardizing my shop’s profitability. When the group asked for my input, I said we had taken a different approach—seeking experienced workers worthy of a higher salary. We’ve certainly hired and had a need for younger, less experienced candidates who excelled and provided a great bang for the buck, but not to replace skilled machinists.

But does a higher payroll really cost more? Many times, the answer is no. Customers have more confidence working with experienced staff. Sure, experienced employees may command higher salaries and more benefits, but they’re usually more productive and more mature. Not to mention the boost to shop credibility when your crack staff is on the job.