Want the Best Working for You? Pay Them When You Say

One of the most frustrating things I endured when I was a consultant were late payments.

It’s one thing to pay your credit card, cable or cell phone bills late. It’s another to pay human beings working for you late, because those people depend on that money to pay their credit card, cable or cell phone bills.

I understand the nature of small business, and how cash flow is king. However, even the most loved kings have been knocked from their thrones, when they’ve failed their subjects.

Not that entrepreneurs are kings, and those working for them are their property.

But you’d think that some have this flawed mentality, by the lack of respect they show those working for them, with the blatant disregard they have for living up to their promises, contracts, or other working relationships.

I’ve had clients who constantly needed to be reminded of their past due payments. I’ve also had clients who had a tradition of paying late, suddenly pay early, only to show their true stripes by requesting additional work, or projects.

It’s nice to earn the respect of a client to the point that they request more. It’s not so nice when they go back to paying late after they no longer need or want those extra services, or if you declined their original offer, because they wanted it done at a ridiculously below market value cost.

Failing to respect those working for you isn’t just unprofessional and rude, but really can lead to major misunderstandings as well.

Nasty rumours start in companies by people that don’t feel welcome being there. It doesn’t matter if the person is a full-time or part-time employee, a contractor, or a consultant – if the higher-ups running the show don’t make them feel wanted, respected and valued, they’ll become a bigger problem quickly.

Because the biggest problem in all the companies I’ve ever worked for is communications. And the biggest communications problems start when the company’s people feel unwanted, disrespected or undervalued.

And the surest and quickest way to make anyone working for you to feel unwanted, disrespected or undervalued is to not pay them when you agreed too.

That’s just common sense, and part of being a responsible business owner, always pay your people on time.

It’s wonderful how business schools these days are teaching the latest in management theory, lean start-up, even basic marketing and bookkeeping. What they should also be teaching those wantrepreneurs is the most valuable lesson of them all – always pay your people on time.

Most employees live pay-cheque-to-pay-cheque, so if you are a bad a boss, they’ll stick with you, until they find another job.

Problem is, finding work in today’s economy isn’t quick and easy. So, while you think you have a loyal and dedicated person working for you, secretly, behind your back, they’ll be looking to replace you as their boss.

While people look for another boss, they often spread rumours, or worse – tell their tales of their woe, their feelings of disrespect, and the horrors of working for you.

Although workplace rumours can kill a company, nothing stops great people working for a company faster than horror stories from those who have or currently work there.

So, by paying your people late, you could be cutting off the flow of the most important resource a company needs – it’s people.