The Union Club of Cleveland’s Lawrence McFadden, CMC, GM/COO, says managers must allow new hires to be involved in the decisions that affect them, including salary.
Recently, I presented salary increases for four exceptional employees to our finance committee. And even after thirty years, I am still surprised by the less than positive connotations that monetary increases display at the upper level.
Most committees or presidents want to place people in a financial category or box, yet these individuals know business growth requires innovative thinking and break-out results.
In 1985, I made five dollars and twenty-five cents as a cook’s apprentice, compared to today’s average kitchen wage of fifteen dollars. Our industry has grown enormously, but wages have stayed static because our industry is viewed as a trade, not an educated profession.
(Please don’t get culinary popularity confused with the profession. Ask most families if they are excited their child has gone into the hospitality profession and you’ll get, “Wonderful place to find oneself before professionally settling into a chosen career.”)
As the General Manager of a top-tier private city club, I sit directly in a caste system around my professional choice. While recognized as a professional, my soundbite can be simply relayed as “He manages our club.”
While I worked in Singapore, career changers were the number one student recruitment tool in our culinary academy. Most families didn’t see culinary as a profession. They saw it as a hobby or personal interest.
There is a financial debate brewing in the states around the cost of culinary education. These negative paradigms will continue to destroy the industry’s interest in student recruitment if we don’t respond with enhanced wages in alignment with tuition levels. The current earned kitchen wage today doesn’t support advanced educational loans and the cost of living.
Like many commodities, the American consumer wants everything cheaper. Food through promotions like super sizing, all you care to eat, or enormous portions follow this pattern. These promotions shrink the cost of sales margins leaving labor costs vulnerable and exploited in the owner’s budget.
Food cost percentages continue to be lowered, and it’s certainly not from increased menu prices. The cost of raw products is at an all-time high, yet consumers still believe fish, chicken and beef are overpriced on menus compared to the chain restaurant commissary purchasing plans. (How true when McDonald’s continues with their dollar menus forcing customers to decide between economics or personal wellness.)
Fast food leads the industry in making cheaper foods through technology and scientific adjustments. Advancements have led to better vegetable yields or quicker protein growth cycles, but preparation times, cost of utilities, and rent are still increasing.
In my staff salary discussion, we identified individuals who were potential outliers, who were separating themselves from general performance employees. These individuals are leaders who made significant strides in our club experience while adding great value to the overall performance of the organization.
All four had unique advanced education, and three even took additional certifications, accepting new responsibilities within their departments.
In addition, I presented a complete description of departmental performances, leadership appraisals, and individual accomplished goals.
When finished my presentation, I heard the familiar response, “Lawrence, can we reduce some of these increased proposals?” and “Do these increases fit within the industry average or a local wage survey?”
Perhaps these paradigms drive the endless industry drama around the cost of staff turnover and the challenges in delivering consistent customer services, but where is the work ethic of today’s employee? If we continue to dumb down sensational talent, expecting them to work for less than their talents demand, what do we expect?
I have one simple question for all potential hires: “How much do you need to make to feel productive in our organization?”
Ninety percent respond with a wage less than what I had budgeted. If successfully hired, I offer slightly higher than their expectation which creates a win-win for our new partnership.