An open letter to employees

This is a thought provoking comment that one of my interstate clients sent me by email and is from a source unknown, so I cannot take the credit.

I believe it makes some valuable and valid points on behalf of business owners regarding the current moves of the Rudd Government to stimulate the economy with their $42 billion cash splash.

Let me say at the outset I am not against the Government investing money in the future of our country, however I do differ greatly with them on some (not all) of their priorities.

After you have read this letter with an open mind as a business owner, business manager or wage earner, I dare say you would be hard pressed to not acknowledge at least some of the sentiments expressed.

Further, if you are a business owner and you are experiencing productivity and staff issues you would do yourself no harm by sharing this “Open Letter” with them.  It’s OK, I’m happy to be the messenger and wear the heat on your behalf! (Of course it should not be the only thing you do - there should be a carefully mapped out strategy to communicate and inform staff of future plans and direction of the company.)

So without further delay here it is:

An “Open Letter” To All My Valued Employees

There have been some rumblings around the office about the future of this company and, more specifically, your job. As you know, the economy has changed for the worse and presents many challenges. However, the good news is this: The economy doesn't pose a threat to your job. What does threaten your job however, is the changing political landscape in this country.

However, let me share with you some little titbits of fact, which might help you decide what is in your best interests.

First, while it is easy to spew rhetoric that casts employers against employees, you have to understand that for every business owner there is a back story. This back story is often neglected and overshadowed by what you see and hear. Sure, you see me park my Subaru Outback outside. You've seen my big home at last year's Christmas party. I'm sure all these flashy icons of luxury conjure up some idealised thoughts about my life.

However, what you don't see is the back story.

I started this company 28 years ago. At that time, I lived in a 2-bedroom flat for 3 years. My entire living area was converted into an office so I could put forth 100 per cent effort into building a company which, by the way, would eventually employ you.

My diet consisted of baked beans, stew and soup because every dollar I spent went back into this company. I drove a rusty Toyota Corolla with a wonky transmission. I didn't have time to go out with women. Often times, I stayed home on weekends while my friends went out drinking and partying. In fact, I was married to my business … hard work, discipline, and sacrifice.

Meanwhile, my friends got jobs. They worked 40 hours a week and made a modest $50,000 a year and spent every cent they earned. They drove flashy cars and lived in expensive homes and wore fancy designer clothes. Instead of hitting the David Jones for the latest hot fashion item, I was trolling through the discount store extracting any clothing item that didn't look like it was birthed in the ‘70s. My friends refinanced their mortgages and lived a life of luxury. I, however, did not. I put my time, my money, and my life into a business with a vision that eventually, some day, I too, will be able to afford these luxuries my friends supposedly had.

So, while you physically arrive at the office at 9am, mentally check in at about noon, and then leave at 5pm, I don't. There is no ‘off’ button for me. When you leave the office, you are done and you have a weekend all to yourself. I unfortunately do not have the freedom. I eat, and breathe this company every minute of the day. There is no rest. There is no weekend. There is no happy hour. Every day this business is attached to my hip like a 1-year-old special needs child. You, of course, only see the fruits of that garden … the nice house, the Subaru, the vacations ... you never realise the back story and the sacrifices I've made.

Now, the economy is falling apart and I, the guy that made all the right decisions and saved his money, have to bail out all the people who didn't. The people that overspent their pay suddenly feel entitled to the same luxuries that I earned and sacrificed a decade of my life for.

Yes, business ownership has its benefits but the price I've paid is steep and not without wounds.

Unfortunately, the cost of running this business, and employing you, is starting to eclipse the threshold of marginal benefit and let me tell you why:

I am being taxed to death and the government thinks I don't pay enough. I have state taxes. Federal taxes. Property taxes. Sales taxes. Payroll taxes. Workers’ compensation. Unemployment taxes. Taxes on taxes. I have to hire an accountant to manage all these taxes and then guess what? I have to pay taxes for employing him. Government mandates and regulations and all the accounting that goes with it now occupy most of my time. On October 15th, I wrote a cheque to the Australian tax Office for $288,000 for quarterly taxes. You know what my ‘stimulus’ cheque is? Zero. Zip. Zilch.

The question I have is this: Who is stimulating the economy? Me, the guy who has provided 14 people good paying jobs and serves over 2,200,000 people per year with a flourishing business? Or, the single mother sitting at home pregnant with her fourth child waiting for her next welfare cheque? Obviously, the government feels the latter is the economic stimulus of this country.

The fact is, if I deducted (read: stole) 50 per cent of your pay you'd quit and you wouldn't work here. I mean, why should you? That's nuts. Who wants to get rewarded only 50 per cent of their hard work? Well, I agree which is why your job is in jeopardy.

Here is what many of you don't understand ... to stimulate the economy you need to stimulate what runs the economy. Had the government suddenly mandated to me that I didn't need to pay taxes, guess what? Instead of depositing that $288,000 into the Canberra black hole, I would have spent it, hired more employees, and generated substantial economic growth. My employees would have enjoyed the wealth of that tax cut in the form of promotions and better salaries. But you can forget it now.

When you have a comatose man on the verge of death, you don't defibrillate and shock his thumb thinking that will bring him back to life, do you? Or, do you defibrillate his heart? Business is at the heart of Australia and always has been. To restart it, you must stimulate it, not kill it. But the powerbrokers in Canberra believe the poor of Australia are the essential drivers of the Australian economic engine. Nothing could be further from the truth.

So where am I going with all this?

It's quite simple.

If any new taxes are levied on me, or my company, my reaction will be swift and simple. I will fire you. I will fire your co-workers. You can then plead with the government to pay for your mortgage, your 4WD and your child's future. Frankly, it isn't my problem any more.

Then, I will close this company down, move to another country, and retire. You see, I'm done.  I'm done with a country that penalises the productive and gives to the unproductive. My motivation to work and to provide jobs will be destroyed, and with it, will be my citizenship.

So, if you lose your job, it won't be at the hands of the economy; it will be at the hands of politicians that swept through this country and changed its financial landscape forever. If that happens, you can find me sitting on a beach, retired, and with no employees to worry about....

Signed,

Your boss