Testing the boss' mettle

In the wonderfully unpredictable world of machine shop management, one thing is certain: Sooner or later, a machinist is going to test the boss’s mettle. How you handle that scenario is one measure of your effectiveness as a manager.

When you’re trying to maintain a tight handle on your activities, especially in this economy, effectively managing payroll is imperative. This, in turn, has managers and owners paying particular attention to payroll numbers and whether they’re in proportion to sales. Even so, good machinists and other workers are hard to replace, and it’s difficult to imagine handling critical jobs without them. 

Many shops can maintain multiple employees in each department to minimize the impact of a staff reduction. But other shops are operating lean and depend on one or two employees, especially machinists. Losing a machinist can negatively impact production and be a serious distraction from already challenging business conditions. 

Regardless of the timing, having a payroll situation with an employee on whom you depend is a fact of life. Eventually, he or she is probably going to ask for a raise. 

In one instance for me, this turned into a test of my own abilities. An employee decided to lay his cards on the table, telling me and my plant manager it was time to come to our senses and realize he was more than fulfilling his obligations and was irreplaceable. He gave us an ultimatum, and expected us to step up and answer his demands or he’d accept another job offer and be gone that very day. 

As I had done earlier in the year, I reviewed his history with our company. I came to the same conclusion that I did earlier: His compensation was already at the high end for his position. The quality of his work was great, but he also had negative personal qualities that, unfortunately, overshadowed his machining skills.

Over several years, we compensated him fairly and provided raises, including covering the rising cost of his and all other employee’s medical premiums. However, he was focused only on his hourly pay rate, which he saw was the same as last year.

While I understand and respect a desire to increase income, an employee can eventually reach a ceiling on his pay rate, especially in a small shop with no promotion opportunities. When that happens, he has to decide if the job stability, health insurance, location and other factors are more important than the hourly pay rate. 

If you’re like this guy, that hourly rate is the primary measurement of job satisfaction. Was he eligible for additional compensation? Yes, when circumstances justified it. In this instance, my research led me to conclude his salary was above average and sufficient. 

I tried to convince him earlier this year that a pay increase based solely on time of service wasn’t possible. But, eventually, he laid it all down, confident I’d see the light. In this case, testing me backfired, and he found himself unemployed by lunch. His supposed job offer was a bluff, and he was surprised we didn’t adhere to his demands. 

It wasn’t an issue I had expected that morning, but the problem was quickly solved. The apprentice machinist has filled in nicely, content to get a new opportunity and be among the employed. So far, it looks like we’re going to make it.