Experienced vs. cheap workers: People & Companies

I recently attended a monthly roundtable with a local business group I’ve been involved with since last September. The purpose is to gather a diverse group of business people to exchange ideas, discuss workplace issues, offer recommendations and generally support the endeavors of each participant.

At our last meeting, one member noted that, in light of the volatile economy and the need to operate as inexpensively as possible, his company and many others have resorted to hiring less-experienced and lower-cost employees, trimming the more-experienced employees with higher salaries. While this technique is understandable, I’ve been taking the opposite approach at my shop—not consciously, which makes this realization interesting—but because of a critical need for skill and experience.

While I was sitting there pondering the discussion, it all clicked. I was “zagging” when most were “zigging.” My initial concern was that I wasn’t following the logical pattern of these successful business people and could be jeopardizing my shop’s survivability. When the group asked for my input, I informed them that I was taking a different approach—seeking experienced machinists, operators and others worthy of a higher salary. Whoa! Does this make sense in a tough economy?

In the past, our shop had hired some younger, inexperienced candidates who excelled and provided a great bang for the buck. That’s a cool accomplishment, but, unfortunately, it’s the exception. Ultimately, workers with more experience—and higher salaries—have proven to be the better choice.

But does a higher payroll really cost more? Many times, it’s not even close. My customers have more confidence working with experienced rather than inexperienced staffers. Sure, experienced employees may command higher salaries and more benefits, but they’re usually more productive, as well as more mature. Not to mention the boost to shop credibility when your crack staff is on the job.