The 2020 Mid-Year Economic Update_long

Merrifield on HR: Pay the Most to Get the Most

Distributors with a slow hire, quick fire mindset can pay better and expect more without spending more.
Angela

Saying you hire at fair wages is just another way of saying you’ve set them “as cheap as you can go,” Bruce Merrifield of Merrifield Consulting Group said, speaking at the distribution-focused Advanced Profit Improvement Conference last week.

In order for things to work out well in a business, you have to have great people. But in order to expect the most from employees and to get the most from them, you have to pay the most, Merrifield said.

That doesn't mean you should pay all your current employees more; not all of them will be willing or able to meet the higher expectations that come with higher pay. Instead, distributors can eliminate any “salary-sucking coasters” from their sales forces and use those dollars to increase incentives for those who remain, Merrifield says.

Merrifield said distributors who hire slowly and carefully, reward high performers generously and quickly terminate employees who are just coasting along will end up with the “fewer better folks” needed to run the business well.

Read more about hiring in distribution in the recent issue of MDM Premium: The Hiring Disconnect in Distribution.

About the Author
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

By subscribing, you are agreeing to MDM’s Privacy Policy.

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.