It's About Fairness

In my profession I see the strange traditions and strategies used by companies that are real head-scratchers when I take just a few moments to think about them.

Tips, for example. Companies are allowed to employ food and beverage servers, porters and bellmen, valets, and such with very little requirement they pay them. These employees are expected to make their money from customer tips - otherwise, the employer is just required to at least guarantee them minimum wage.

What about tips is so sacred? Why can't employers simply pay their service workers a decent wage and leave tips the way they should be - a way for a customer to voluntarily reward their server for exceptional service! Instead, we customers are expected to cough up the price of the restaurant meal, plus hand over money to the kid who parks our car and the girl who brings us our food. Because if we don't, nobody else will.

I think it's ridiculous.

Then there's the one that really bugs me. Some may remember that the corporate revolution in the 80's was to "flatten" the organization, cutting out all of the so-called "middle management" positions. Some of that was because some of those middle managers became unnecessary with the advent of powerful and efficient data processing systems.

The other thing that happened was that jobs formerly held by professional people are now held by clerks.

Consider this common scenario:

Company ABC has lost their long-time Manager of Accounts Payable, let's say to early retirement (euphemism for a white-collar layoff aimed at cutting out the high salary of the 30-year professional manager). The company changes the position title from Manager of Accounts Payable to A/P Supervisor. The newly designed position pays maybe 50-60% of the old position, and the company promotes the most reliable Accounts Payable clerk to the new position.

The A/P Supervisor position is still a Salaried Exempt job, which means the clerk now responsible for the department is required to work around 50 hours per week. Of course, the 50 hours can go up to 60 or more during certain times of the year, when the activity gets high or new systems and processes are implemented. The catch is that if you break down the new supervisor's effective hourly pay, it is actually lower than their more experienced direct-reports.

So this clerk, who used to like her job as the lead A/P clerk, now can never seem to get away from the office. Her boss won't let her take all her earned vacation; not by directly denying her requests for vacation time, but by making it crystal clear to her that if she takes all of her vacation, it will be impossible for her to meet her job objectives and will either have no salary increase or possibly be fired. So she gives up 2 weeks of vacation every year, which the employer takes back in their "use it or lose it" vacation policy.

To me, it's morally repugnant. But nobody even knows the definition of morality these days. The government can't fix it with legislation, because such legislation would be micro-management. I only hope that companies rediscover that simply being fair and caring about the welfare and personal needs of their employees can pay off with better and more loyal employees.