Warning: This is about way more than "market rates."
Today I'm answering one of the questions I get most often: how much should you actually be paying your team? I'll give you the quick number, and then the longer answer, because quick isn't alway correct. I'll also walk through the three-part filter I use for every hiring decision, the difference between paying someone to do the work and paying someone to think with you, and why support feels so expensive when you've spent years never paying yourself fairly. (Yup, we're going there!)
So grab your fave bevvie and headphones and take this ep for a walk!
Afterwards, pop onto IG and let me know what you thought!
Takeaways
- Twenty to thirty percent of overhead is a good check-in.
- Every hiring decision should be responsible, aligned, and a little bit stretchy.
- Team stops being a commodity the moment they start thinking on your behalf.
- Mental load and worry load are two different price points.
- Before you ask what to pay your team, get clear on what your own seat is.
Resources
Q's for you to ask yourself as you ponder how much to pay:
- What do I want my seat on the team to be? (Task doer vs. thinking partner vs. visionary vs. technician)
- What am I bringing to the table, and what do I want off my plate?
- What thinking do I want brought to me, instead of me generating it myself?
- What have I been paying myself? (Are business finances and personal finances actually separate, or has she been absorbing the value of every role herself?)
- If I weren't doing this job, what would I pay someone else to do it? (The real gut-check behind "expensive")
- Who am I replacing, and what is my new role once I do?
- Do I actually want to build a company and a culture, or is this more of a solo game for me?
- Am I willing to do something uncomfortable to get where I'm trying to go? (the "stretchy" filter)
- Is this decision responsible, aligned, and stretchy — not just one of the three?
⏱️Timestamps
00:00 Introduction
00:45 The Quick Answer: 20 to 30 Percent
02:35 Responsible, Aligned, and Stretchy Decisions
03:55 Alignment and What's Right for This Season
05:20 Why Stretchiness Matters in a Growth Season
05:55 When Team Stops Being a Commodity
08:45 Mental Load vs. Worry Load
10:00 What Do You Want Your Seat to Be?
10:40 What Have You Been Paying Yourself?
11:35 The Client Who Was Doing Every Job
13:20 Hot Tips Before You Hire
15:30 You Are the Culture
16:20 Final Thoughts
Links & Resources:Erin’s Website
Commonwealth Co.
If you enjoy this episode please leave a 5 star review!
And if you need any sales/growth support, reach out to [email protected]
More info about working together at erinlindstrom.com
Andddddddd hang out w me on Instagram for behind the scenes and current hot takes!