Dear Mack,
I run a construction company and have been paying my workers well above the industry standard. Lately, I’ve been hearing concerns that this could be setting them up for unrealistic expectations about wages in the industry as a whole. The economy is tightening, and I’m feeling the pressure to cut costs, but I can’t seem to bring myself to pay someone less for the same hard work. Am I being too generous, or is the market just shifting?
— Stuck Between a Paycheck and a Hard Place
Dear Stuck,
Ah, the eternal battle between the head and the heart—right up there with “Do I really need another beer?” and “Should I text my ex?”
I get it. The numbers are staring you down, whispering sweet nothings about profit margins, while your conscience reminds you that these are people, not just payroll expenses. The reality is, the cost of labor is a moving target. Wages in construction have climbed for a reason—fewer workers are sticking around, and those who do are realizing that their skillset is worth more than a handshake and a pat on the back.
That said, are you overpaying? Maybe. But here’s the thing: fair wages aren’t just about industry averages. They’re about retention, morale, and the quality of work you’re getting in return. If your crew is skilled, reliable, and not ghosting you for the next job that waves a dollar more in their face, then maybe you’re not overpaying—you’re just paying what it actually takes to keep good workers.
Now, if you’re worried about them developing an inflated sense of what the industry pays, that’s where honesty comes in. Lay it out for them. “Hey, I’m paying you well because I value your work. But not every company is going to pay like this. If the market shifts, so will wages.” Let them know that their pay is tied to performance, demand, and the health of the business—not just generosity.
At the end of the day, you can pay the minimum and wonder why you can’t find good workers, or you can pay well and have a team that actually sticks around. If your business can afford it, and it keeps your operation running strong, you’re not overpaying—you’re just staying ahead of the game.
Now, if only lawmakers applied the same logic to their own salaries.
— Mack
