Welcome to Car Talk. This is not talking about cars. This is talking inside of a car. Today’s topic is about how I value employees. For those of you that don’t know, today is the third day of my time having two employees. I had one for about half of last year, and then brought on Josh on the 2nd of January this year. So now I’m into the world of managing multiple employees, which I’ve done it at an old job, but let’s be honest, I’ve never done it before at a place I really, really cared about. That was in college. College jobs, you know how they are. Anyway. So it’s been dawning to me, a couple things that I felt I noticed along the way, some questions that Ben brought up prior to Josh coming in from his experience in other jobs, and it’s really forced me to consider, explain, articulate, which I did in the first, my 2018 Vision All Hands Meeting. Check it out, you can do the audio on the podcast. Tyler Douthitt, all the audio channels. But to talk about how I value employees, and I don’t know how every place values employees. I know what I have experienced in my short time at teenage type jobs. I never worked in what you would call like a real job. company after college. And then my own business.
So I’ve never really worked at those kind of corporate jobs to know how they value things. But I knew a lot of places. My wife’s old job back when she was still working outside the home. A lot of things. It was a union job and they really value seniority. And I’ve always had a hard time with that because I think, one, that’s part of the problem with a lot of the education system, valuing seniority versus output, just my two cents on that. But putting that aside, being somewhere longer doesn’t necessarily make you any better at anything. It makes you more experienced perhaps, but there’s nothing that says someone that comes in and works two weeks couldn’t do something much better than someone that’s been doing that same thing for five years. Maybe their talent and their skill level is just much higher, that happens. Not too often, but it does happen. So it came up with how I value employees. And I was forced to kind of whittle it down to about one or two sentences of how I value employees, and I would say… And when I say value employees, it’s mostly pretty much how much you get paid. How much you get paid, and that’s based on how hard you are to replace. And that’s really it, plain and simple. If you’re easy to replace, if I could find some person off the street and have them do your job in a week, then you are obviously pretty replaceable. That’s just objectively speaking how it is. Both these employees are parts of my family, my wife’s brother and my wife’s nephew on her side. ‘Cause they’re family, and if anything ever happened, and I want to do my best to be fair, but this business is a meritocracy. And in case you don’t know what that means, that means that the top performers get rewarded and the bottom performers don’t because that’s what I care about, growing the business, and whoever can perform the best, gets paid more. It’s how easy you are or how hard you are to be replaced. Now, if someone says, “I’m gonna quit in two weeks “’cause I got something better.” and you go, “Oh my god, how am I gonna “function without that person there?” now, that person sounds pretty valuable, and if you can put an employer or someone else in that position, that gives you the leverage and it’s always fun to have the leverage.
Now, I know lots of places that have different things, red tape, forms to fill out, scratching each other’s back, someone’s the friend of somebody, someone’s the nephew of the CEO, someone is a son of the president, and this stuff happens, it happens. So I’m not gonna pretend this is how it is everywhere. But this is how it is where I am at because as Gary V would say, it’s a dictatorship. I get to make every single rule and do whatever I want in the business sense here. And how I have chosen to do things moving forward now that I have two employees because as raises would come and go, and perks of the job and responsibilities. The easier someone is to replace, the less valuable they are, the less they get paid. The harder someone is to replace, the more valuable they are, the more they get paid. Does that go hand in hand with seniority? Sometimes, sometimes not. Ben’s been here seven months. So he obviously knows more. He can run the general, day-to-day operations of the business, and Josh can’t. He’s been three days. Today’s his third day, so two days completed. Hasn’t started yet his third day. And that means he gets paid less because he is less valuable. So I just wanted to go on the record as clear as I possibly can, for now and forever with my business ventures, that I will operate my business as a meritocracy. The high performers get rewarded. The bottom performers don’t. And the easier you are to replace, the less you get paid. The harder you are to replace, the more you get paid. And that is today’s Car Talk, how I value employees. Car Talk, Tyler Douthitt.