r/smallbusiness • u/trips2you2 • 6h ago
Manager being overpaid but wants more money. Starting to act childish
I own a small business with 4 employees. It's very successful, seasonal, and highly profitable ($100k profit/month). I live 2000 miles away and one of my friends has run the business as on on-site manager for me for the past 4 years. I do visit and spend a few days on site once a month or so. I salary him and this year gave him a $1500/month raise this year. The job is blue collar, outdoor and can be labor intensive but no special skills are needed. In this industry the position pays $35/hr but I'm paying $90/hr. He has never missed a day and goes above and beyond at times. So I'm really overpaying him. He is working 4-5 days/wk usually 40 hrs.
Recently he has started acting out. He's been getting defiant with me about getting things done and at times, cursing me out or flat out refusing to do things I ask. Several small jobs that should have taken 30 mins have been idle for 3 months. Today he called me 30 mins before he was to open and said he doesn't think he'll be coming in. But showed up anyway. When I arrived he told me he felt as though he was being underpaid and wants a raise.
I can tell what's happening. He sees the sales numbers we are doing (based on customer count) and thinks I'm depending on him to run the business. Without him, he thinks I'm screwed. In reality I can hire a 16 year old for $10/hr to do the job - I'm just worried about reliability.
What should I do at this point? I'm overpaying him to a ridiculous amount but he says he's being underpaid. I don't like to play childish games (such as 'you pay me more or I'm not showing up to work' type bs). I intend to have a meeting with him this week. Any ideas how I should approach this? I mean I'm paying the guy triple industry average and he's not happy and becoming insubordinate.