Team
28 Mar 24

Building Your Reliable Team: How Pricing Affects Who You Can Hire

3 min
Read time
8.9
Rating
1.675K
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Normally when you think about your margin you think about profit. 

You wouldn’t think about its effect on building your team. 

Your margin is a major driver behind building your crew for 5 reasons.

A weak margin means… 

  1. You can’t afford to pay high wages 

The best people get paid the best money. 

Imagine two jobs offers, the conditions for each are the same… 

Would the best person take a $40 per hour pay package or $60? 

So you need to be charging a high margin so you can pay high wages and attract the best people. 

  1. You can’t afford to hire off the tools 

Growing your workload often requires growth of your team. 

But most business owners only think about the work on the tools. 

They forget that more jobs mean more pricing, scheduling, invoices, ordering, etc. 

If your margin isn’t high enough you can’t afford to hire the help you need in the office. 

This is key to having a business that doesn’t rely on you. 

  1. You can’t afford to keep your good team members 

Keeping your good team members isn’t just about wages. 

A low margin means you can’t afford to… 

  • Offer good perks e.g. A modern work vehicle, modern equipment, etc. 
  • To have team building events, dinners, parties 
  • Have training programs and provide development that good people want 
     
  1. You can’t afford to hire at all 

In some cases your low margin might mean you can’t hire at all. 

Adding another team member would mean more wages. 

Once you add all the training and equipment costs you simply might not be able to do it. 

But the work is still there so you end up overworked which leads to the last problem. 

  1. You can’t build a good culture 

A low margin often means you’re running lean. 

Meaning a lot of the work is being done by you which can lead to overwork. 

When you’re overworked, you’re not your best self. 

It’s easy to be grouchy, demanding, and short tempered which rubs off on your team. 

The effects of overwork don’t stop with you… 

Overworked team members become grouchy, negative and are less productive. 

They also make mistakes which that cost you money. 

Then you can’t afford to train your team or have meetings with them to correct any behaviour you want to get rid of. 

Because you can’t afford to not have them working. 

So remember that your margin has an impact on how you build your team. 

Don’t make the mistake of thinking businesses who charge high prices can do so because they have a good team. 

They have a good team because they charge high prices. 

It’s margin first. 

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