Pay--Wholesale or retail

I have kids in school- high school and college.  They are good students, they get good grades.  But I am not a big one on grades, formal education.  Don't get me wrong, I believe that today you need to be able to check off that box that says you got a college degree.  It is important.

But what degree you got, the GPA are almost meaningless after your first job for most people.  There are certainly exceptions to that with people who have a more specific major like nursing for example.

But employers are probably only going to care about your degree and GPA on the first job.  On the first job you need to be great!  You need to be the employee who is hungry to learn more.  You want to be inquisitive about the job.  How many new skills can you learn so that you can be more valuable to the company?  You want to be inquisitive about the company.  What industry is it in?  How is that industry doing?  What are the major threats to the company?  Who are the competitors?  Check out the competitors website.  Do they do the same thing your company does?  Or do they have a unique spin that sets them apart? 

But the most important thing you can do is be good at your job.  Get through your tasks every day quickly and efficiently.  If you have down time, ask your boss how they would like you to fill that downtime.  Most bosses would die to hear that from an employee!

Be a team player.  Help others out whenever you can, especially your boss.  Are there tasks they are doing that you could do for them?  If a project comes around, be the first to volunteer.  Your work will get done.  Be the employee that is always seeking to improve the company.

So you are the best employee within the company, what do you think that means to you regarding compensation?  I had an employee that worked for me, doing most of what I just wrote.  After about 2 months she came to us asking for more money.  We told her reviews happen at year end.  She quit. 

Really?!

The deal is your employer buys you for wholesale and sells you for retail.  The difference between the two prices are the profit to the company. 

The wholesale price is what you are paid today.  The retail price is the value you create for the company.  If you are great, making the company more efficient, coming up with good ideas for the company-- your value is rising! 

The more profit you can make for the company, the more the company will be willing to pay you.  You might think that is only for sales people.  Not true.  It is truly for every employee at every level. 

You will be fired if the value you create, the retail price is lower than your pay.  If the company perceives that you are making too much money, that is not a good situation.  How many professional athletes come out with HUGE contracts and never live up to their paycheck?  That is exactly what I am talking about.  

You might think I am crazy, but that athlete is better off telling the organization to pay him his REAL value and take a pay cut.  Everyone in the organization will be thrilled.  Then when the player is making the "right" amount of money, everyone will be happy.

And that is exactly what employees need to consider when they ask for that next pay raise... am I more valuable to my company?