Re: [AFMUG] compensation for employees

[Ken Hohhof]

True.

 

1976-1988 were my Rockwell years.  Back then, benefits were key to hiring and 
retention, and the big 3 were (1) 401K match, (2) “cafeteria” health insurance, 
and (3) tuition reimbursement.

 

My recollection is they matched 401K contributions dollar-for-dollar up to 3% 
of income.  That’s a no-brainer, basically free money, and a way for the 
company to incent people to put some money away tax-deferred for retirement 
rather than assuming they can live on Social Security alone.  But not entirely 
altruistic, I believe that was a safe harbor to avoid a test whether too much 
of the tax benefit was going to higher earners, managers and owners.

 

But that was long, long ago.

 

Oh, and tuition reimbursement was interesting.  If I remember right, you got 
100% for an A, 75% for a B, 50% for a C, and zilch for a D or F.

 

From: AF  On Behalf Of Robert
Sent: Sunday, January 28, 2024 8:14 PM
To: af@af.afmug.com
Subject: Re: [AFMUG] compensation for employees

 

People don't always know what is best for them.   But fully funding an IRA 
would be a way to funnel money to them without taxes that might be appreciated 
when they do their taxes..

On 1/28/24 6:09 PM, Chuck McCown via AF wrote:

I would be a bit surprised if anyone that works on my shop floor would prefer 
that.  We only have 25 employees and they are mostly welders etc.  I wonder if 
any of them even have an IRA.

 

 

 

From: Robert 

Sent: Sunday, January 28, 2024 7:53 PM

To: af@af.afmug.com   

Subject: Re: [AFMUG] compensation for employees

 

Fully fund IRAs?

On 1/28/24 5:18 PM, Chuck McCown via AF wrote:

Thanks Ken,

No stock options.  I am slowly giving the company to a couple sons that are 
putting in the sweat equity.  Still not sure about production based bonuses.  
Should everyone get the same amount?

 

 

 

From: Ken Hohhof 

Sent: Sunday, January 28, 2024 1:11 PM

To: 'AnimalFarm Microwave Users Group' 

Subject: Re: [AFMUG] compensation for employees

 

I worked for big companies in the 80’s and remember profit sharing and 
Christmas bonuses.  Then we had a period of startups with stock options as a 
huge part of compensation – the idea was you worked 80 hour weeks for modest 
pay but if the company hit it big your options could be worth a lot.  I suspect 
some people hit the jackpot and a lot more got the shaft.

 

My sense is that employees today are mostly focused on the short term.  They 
have bills to pay, they want to know what income they can count on, they 
probably don’t want to roll the dice on profit sharing or a bonus or stock 
options.  Also, Millennials and Gen XYZ I talk to seem to view employment as 
transactional, and they don’t necessarily identify with the company or the 
owners (thanks to companies like Amazon and owners like Bezos).

 

So while I don’t have any hard facts, my guess is you’re doing the right thing 
already.  If you’re inclined to tie compensation to company performance, I 
wouldn’t make it a large percentage, and I wouldn’t try to use it as an 
incentive for people to work insane hours or achieve impossible goals (like 
Elon Musk’s “extremely hardcore”).  And I’d make it fairly short term, like 
monthly or something, so employees aren’t making their families scrimp in hopes 
of a windfall at the end of the quarter or year.

 

If you do experience hard times, reduced hours might be a temporary solution at 
least for hourly employees.  Realizing that with low unemployment, some of them 
might move elsewhere.

 

The good news is that any part of your business tied to fiber projects is 
likely to have at least 5 good years coming.

 

From: AF mailto:af-boun...@af.afmug.com On Behalf Of Chuck McCown via AF
Sent: Sunday, January 28, 2024 12:16 PM
To: af@af.afmug.com  
Cc: ch...@go-mtc.com  
Subject: [AFMUG] compensation for employees

 

My latest pivot a couple of years ago to microtrenching blades, adding grout 
machines, then microtrenching saw attachments and now to a specialized type of 
vacuum excavator has gone extremely well.  Almost no software involved.  Just a 
little in a motion control PCB in the grout machine to control the hydrostatic 
transmission.  This is by far my most profitable season I have ever had in 50 
years of running some kind of hustle.  And those years of the stinger and other 
related antennas and hardware were not bad at all.  I am a bit more confident 
that these new “durable products” have more legs than the antennas that were 
radio specific.

 

But having been through wax and wane of business, economy and product cycles 
for many decades, I am always reticent to ratchet up pay.  I do give bonuses.  
I will always live in fear of not meeting payroll.  Only happened once about 30 
years ago, but that is a bad deal.  And actually nobody was unpaid but I had to 
layoff everyone.  But I digress.  

 

What would y’all suggest as a way to reward employees when things are 

Re: [AFMUG] compensation for employees

[Robert]

People don't always know what is best for them.   But fully funding an 
IRA would be a way to funnel money to them without taxes that might be 
appreciated when they do their taxes..


On 1/28/24 6:09 PM, Chuck McCown via AF wrote:
I would be a bit surprised if anyone that works on my shop floor would 
prefer that.  We only have 25 employees and they are mostly welders 
etc.  I wonder if any of them even have an IRA.

*From:* Robert
*Sent:* Sunday, January 28, 2024 7:53 PM
*To:* af@af.afmug.com
*Subject:* Re: [AFMUG] compensation for employees
Fully fund IRAs?

On 1/28/24 5:18 PM, Chuck McCown via AF wrote:

Thanks Ken,
No stock options.  I am slowly giving the company to a couple sons 
that are putting in the sweat equity.  Still not sure about 
production based bonuses.  Should everyone get the same amount?

*From:* Ken Hohhof
*Sent:* Sunday, January 28, 2024 1:11 PM
*To:* 'AnimalFarm Microwave Users Group'
*Subject:* Re: [AFMUG] compensation for employees

I worked for big companies in the 80’s and remember profit sharing 
and Christmas bonuses.  Then we had a period of startups with stock 
options as a huge part of compensation – the idea was you worked 80 
hour weeks for modest pay but if the company hit it big your options 
could be worth a lot.  I suspect some people hit the jackpot and a 
lot more got the shaft.


My sense is that employees today are mostly focused on the short 
term. They have bills to pay, they want to know what income they can 
count on, they probably don’t want to roll the dice on profit sharing 
or a bonus or stock options.  Also, Millennials and Gen XYZ I talk to 
seem to view employment as transactional, and they don’t necessarily 
identify with the company or the owners (thanks to companies like 
Amazon and owners like Bezos).


So while I don’t have any hard facts, my guess is you’re doing the 
right thing already.  If you’re inclined to tie compensation to 
company performance, I wouldn’t make it a large percentage, and I 
wouldn’t try to use it as an incentive for people to work insane 
hours or achieve impossible goals (like Elon Musk’s “extremely 
hardcore”).  And I’d make it fairly short term, like monthly or 
something, so employees aren’t making their families scrimp in hopes 
of a windfall at the end of the quarter or year.


If you do experience hard times, reduced hours might be a temporary 
solution at least for hourly employees. Realizing that with low 
unemployment, some of them might move elsewhere.


The good news is that any part of your business tied to fiber 
projects is likely to have at least 5 good years coming.


*From:* AF mailto:af-boun...@af.afmug.com *On Behalf Of *Chuck McCown 
via AF

*Sent:* Sunday, January 28, 2024 12:16 PM
*To:* af@af.afmug.com
*Cc:* ch...@go-mtc.com
*Subject:* [AFMUG] compensation for employees

My latest pivot a couple of years ago to microtrenching blades, 
adding grout machines, then microtrenching saw attachments and now to 
a specialized type of vacuum excavator has gone extremely well.  
Almost no software involved.  Just a little in a motion control PCB 
in the grout machine to control the hydrostatic transmission. This is 
by far my most profitable season I have ever had in 50 years of 
running some kind of hustle.  And those years of the stinger and 
other related antennas and hardware were not bad at all.  I am a bit 
more confident that these new “durable products” have more legs than 
the antennas that were radio specific.


But having been through wax and wane of business, economy and product 
cycles for many decades, I am always reticent to ratchet up pay.  I 
do give bonuses.  I will always live in fear of not meeting payroll.  
Only happened once about 30 years ago, but that is a bad deal.  And 
actually nobody was unpaid but I had to layoff everyone.  But I digress.


What would y’all suggest as a way to reward employees when things are 
going well?  I give COLA plus modest merit increases every 6 months.  
I could give substantial merit increases but that plays into my 
phobia of things getting tight again.  Maybe that is totally 
unfounded.  I know when things started going well for Henry Ford he 
doubled pay and things got even better for him.


I would like to do bonuses based on my bottom line income (I think), 
but how to distribute that evenly?  Should everyone get the same 
amount?  And how to relate that the size of the bonus is tied 
directly to how well the company is doing?  Or should I just give 
really nice raises this go around?  Or both?  I guess if things slow 
down we can always trim staff or let attrition do it for us.  I think 
you all can understand the reluctance to give raises as it is a one 
way street.  You really cannot cut pay.


I want employees to prosper and do better personally.  I wonder if my 
fears are justified.  I know some of you have worked for large 
companies at certain points in your life, how did they accomplish 
this.  I know some of you have really prospered with 

Re: [AFMUG] compensation for employees

[Chuck McCown via AF]

I would be a bit surprised if anyone that works on my shop floor would prefer 
that.  We only have 25 employees and they are mostly welders etc.  I wonder if 
any of them even have an IRA.



From: Robert 
Sent: Sunday, January 28, 2024 7:53 PM
To: af@af.afmug.com 
Subject: Re: [AFMUG] compensation for employees

Fully fund IRAs?


On 1/28/24 5:18 PM, Chuck McCown via AF wrote:

  Thanks Ken,
  No stock options.  I am slowly giving the company to a couple sons that are 
putting in the sweat equity.  Still not sure about production based bonuses.  
Should everyone get the same amount?



  From: Ken Hohhof 
  Sent: Sunday, January 28, 2024 1:11 PM
  To: 'AnimalFarm Microwave Users Group' 
  Subject: Re: [AFMUG] compensation for employees

  I worked for big companies in the 80’s and remember profit sharing and 
Christmas bonuses.  Then we had a period of startups with stock options as a 
huge part of compensation – the idea was you worked 80 hour weeks for modest 
pay but if the company hit it big your options could be worth a lot.  I suspect 
some people hit the jackpot and a lot more got the shaft.

   

  My sense is that employees today are mostly focused on the short term.  They 
have bills to pay, they want to know what income they can count on, they 
probably don’t want to roll the dice on profit sharing or a bonus or stock 
options.  Also, Millennials and Gen XYZ I talk to seem to view employment as 
transactional, and they don’t necessarily identify with the company or the 
owners (thanks to companies like Amazon and owners like Bezos).

   

  So while I don’t have any hard facts, my guess is you’re doing the right 
thing already.  If you’re inclined to tie compensation to company performance, 
I wouldn’t make it a large percentage, and I wouldn’t try to use it as an 
incentive for people to work insane hours or achieve impossible goals (like 
Elon Musk’s “extremely hardcore”).  And I’d make it fairly short term, like 
monthly or something, so employees aren’t making their families scrimp in hopes 
of a windfall at the end of the quarter or year.

   

  If you do experience hard times, reduced hours might be a temporary solution 
at least for hourly employees.  Realizing that with low unemployment, some of 
them might move elsewhere.

   

  The good news is that any part of your business tied to fiber projects is 
likely to have at least 5 good years coming.

   

  From: AF mailto:af-boun...@af.afmug.com On Behalf Of Chuck McCown via AF
  Sent: Sunday, January 28, 2024 12:16 PM
  To: af@af.afmug.com
  Cc: ch...@go-mtc.com
  Subject: [AFMUG] compensation for employees

   

  My latest pivot a couple of years ago to microtrenching blades, adding grout 
machines, then microtrenching saw attachments and now to a specialized type of 
vacuum excavator has gone extremely well.  Almost no software involved.  Just a 
little in a motion control PCB in the grout machine to control the hydrostatic 
transmission.  This is by far my most profitable season I have ever had in 50 
years of running some kind of hustle.  And those years of the stinger and other 
related antennas and hardware were not bad at all.  I am a bit more confident 
that these new “durable products” have more legs than the antennas that were 
radio specific.

   

  But having been through wax and wane of business, economy and product cycles 
for many decades, I am always reticent to ratchet up pay.  I do give bonuses.  
I will always live in fear of not meeting payroll.  Only happened once about 30 
years ago, but that is a bad deal.  And actually nobody was unpaid but I had to 
layoff everyone.  But I digress.  

   

  What would y’all suggest as a way to reward employees when things are going 
well?  I give COLA plus modest merit increases every 6 months.  I could give 
substantial merit increases but that plays into my phobia of things getting 
tight again.  Maybe that is totally unfounded.  I know when things started 
going well for Henry Ford he doubled pay and things got even better for him.

   

  I would like to do bonuses based on my bottom line income (I think), but how 
to distribute that evenly?  Should everyone get the same amount?  And how to 
relate that the size of the bonus is tied directly to how well the company is 
doing?  Or should I just give really nice raises this go around?  Or both?  I 
guess if things slow down we can always trim staff or let attrition do it for 
us.  I think you all can understand the reluctance to give raises as it is a 
one way street.  You really cannot cut pay.

   

  I want employees to prosper and do better personally.  I wonder if my fears 
are justified.  I know some of you have worked for large companies at certain 
points in your life, how did they accomplish this.  I know some of you have 
really prospered with your WISP/ISP, curious how you approached the whole 
sharing the wealth thing.  

   

   

  Chuck McCown
  McCown Technology Corporation
  8401 N Commerce Dr
  Lake 

Re: [AFMUG] compensation for employees

[Chuck McCown via AF]

I don’t have sales people.  If I did I would certainly make it commission 
based.  Right now I am selling more than can make with zero sales effort.  
Trying to scale without going nuts with expense and payroll. 



From: Ken Hohhof 
Sent: Sunday, January 28, 2024 7:27 PM
To: 'AnimalFarm Microwave Users Group' 
Subject: Re: [AFMUG] compensation for employees

Maybe others will have answers to that question, sounds like tricky territory.

 

Do you have salespeople, and are they already getting performance based pay?  
That’s the one exception that comes to my mind, but you could argue both sides 
of that one also.

 

From: AF  On Behalf Of Chuck McCown via AF
Sent: Sunday, January 28, 2024 7:18 PM
To: 'AnimalFarm Microwave Users Group' 
Cc: ch...@go-mtc.com
Subject: Re: [AFMUG] compensation for employees

 

Thanks Ken,

No stock options.  I am slowly giving the company to a couple sons that are 
putting in the sweat equity.  Still not sure about production based bonuses.  
Should everyone get the same amount?

 

 

 

From: Ken Hohhof 

Sent: Sunday, January 28, 2024 1:11 PM

To: 'AnimalFarm Microwave Users Group' 

Subject: Re: [AFMUG] compensation for employees

 

I worked for big companies in the 80’s and remember profit sharing and 
Christmas bonuses.  Then we had a period of startups with stock options as a 
huge part of compensation – the idea was you worked 80 hour weeks for modest 
pay but if the company hit it big your options could be worth a lot.  I suspect 
some people hit the jackpot and a lot more got the shaft.

 

My sense is that employees today are mostly focused on the short term.  They 
have bills to pay, they want to know what income they can count on, they 
probably don’t want to roll the dice on profit sharing or a bonus or stock 
options.  Also, Millennials and Gen XYZ I talk to seem to view employment as 
transactional, and they don’t necessarily identify with the company or the 
owners (thanks to companies like Amazon and owners like Bezos).

 

So while I don’t have any hard facts, my guess is you’re doing the right thing 
already.  If you’re inclined to tie compensation to company performance, I 
wouldn’t make it a large percentage, and I wouldn’t try to use it as an 
incentive for people to work insane hours or achieve impossible goals (like 
Elon Musk’s “extremely hardcore”).  And I’d make it fairly short term, like 
monthly or something, so employees aren’t making their families scrimp in hopes 
of a windfall at the end of the quarter or year.

 

If you do experience hard times, reduced hours might be a temporary solution at 
least for hourly employees.  Realizing that with low unemployment, some of them 
might move elsewhere.

 

The good news is that any part of your business tied to fiber projects is 
likely to have at least 5 good years coming.

 

From: AF  On Behalf Of Chuck McCown via AF
Sent: Sunday, January 28, 2024 12:16 PM
To: af@af.afmug.com
Cc: ch...@go-mtc.com
Subject: [AFMUG] compensation for employees

 

My latest pivot a couple of years ago to microtrenching blades, adding grout 
machines, then microtrenching saw attachments and now to a specialized type of 
vacuum excavator has gone extremely well.  Almost no software involved.  Just a 
little in a motion control PCB in the grout machine to control the hydrostatic 
transmission.  This is by far my most profitable season I have ever had in 50 
years of running some kind of hustle.  And those years of the stinger and other 
related antennas and hardware were not bad at all.  I am a bit more confident 
that these new “durable products” have more legs than the antennas that were 
radio specific.

 

But having been through wax and wane of business, economy and product cycles 
for many decades, I am always reticent to ratchet up pay.  I do give bonuses.  
I will always live in fear of not meeting payroll.  Only happened once about 30 
years ago, but that is a bad deal.  And actually nobody was unpaid but I had to 
layoff everyone.  But I digress.  

 

What would y’all suggest as a way to reward employees when things are going 
well?  I give COLA plus modest merit increases every 6 months.  I could give 
substantial merit increases but that plays into my phobia of things getting 
tight again.  Maybe that is totally unfounded.  I know when things started 
going well for Henry Ford he doubled pay and things got even better for him.

 

I would like to do bonuses based on my bottom line income (I think), but how to 
distribute that evenly?  Should everyone get the same amount?  And how to 
relate that the size of the bonus is tied directly to how well the company is 
doing?  Or should I just give really nice raises this go around?  Or both?  I 
guess if things slow down we can always trim staff or let attrition do it for 
us.  I think you all can understand the reluctance to give raises as it is a 
one way street.  You really cannot cut pay.

 

I want employees to prosper and do better personally.  I wonder 

Re: [AFMUG] compensation for employees

[Robert]

Fully fund IRAs?

On 1/28/24 5:18 PM, Chuck McCown via AF wrote:

Thanks Ken,
No stock options.  I am slowly giving the company to a couple sons 
that are putting in the sweat equity.  Still not sure about production 
based bonuses.  Should everyone get the same amount?

*From:* Ken Hohhof
*Sent:* Sunday, January 28, 2024 1:11 PM
*To:* 'AnimalFarm Microwave Users Group'
*Subject:* Re: [AFMUG] compensation for employees

I worked for big companies in the 80’s and remember profit sharing and 
Christmas bonuses. Then we had a period of startups with stock options 
as a huge part of compensation – the idea was you worked 80 hour weeks 
for modest pay but if the company hit it big your options could be 
worth a lot.  I suspect some people hit the jackpot and a lot more got 
the shaft.


My sense is that employees today are mostly focused on the short 
term.  They have bills to pay, they want to know what income they can 
count on, they probably don’t want to roll the dice on profit sharing 
or a bonus or stock options.  Also, Millennials and Gen XYZ I talk to 
seem to view employment as transactional, and they don’t necessarily 
identify with the company or the owners (thanks to companies like 
Amazon and owners like Bezos).


So while I don’t have any hard facts, my guess is you’re doing the 
right thing already.  If you’re inclined to tie compensation to 
company performance, I wouldn’t make it a large percentage, and I 
wouldn’t try to use it as an incentive for people to work insane hours 
or achieve impossible goals (like Elon Musk’s “extremely hardcore”).  
And I’d make it fairly short term, like monthly or something, so 
employees aren’t making their families scrimp in hopes of a windfall 
at the end of the quarter or year.


If you do experience hard times, reduced hours might be a temporary 
solution at least for hourly employees.  Realizing that with low 
unemployment, some of them might move elsewhere.


The good news is that any part of your business tied to fiber projects 
is likely to have at least 5 good years coming.


*From:* AF  *On Behalf Of *Chuck McCown via AF
*Sent:* Sunday, January 28, 2024 12:16 PM
*To:* af@af.afmug.com
*Cc:* ch...@go-mtc.com
*Subject:* [AFMUG] compensation for employees

My latest pivot a couple of years ago to microtrenching blades, adding 
grout machines, then microtrenching saw attachments and now to a 
specialized type of vacuum excavator has gone extremely well.  Almost 
no software involved. Just a little in a motion control PCB in the 
grout machine to control the hydrostatic transmission.  This is by far 
my most profitable season I have ever had in 50 years of running some 
kind of hustle.  And those years of the stinger and other related 
antennas and hardware were not bad at all.  I am a bit more confident 
that these new “durable products” have more legs than the antennas 
that were radio specific.


But having been through wax and wane of business, economy and product 
cycles for many decades, I am always reticent to ratchet up pay.  I do 
give bonuses. I will always live in fear of not meeting payroll.  Only 
happened once about 30 years ago, but that is a bad deal.  And 
actually nobody was unpaid but I had to layoff everyone.  But I digress.


What would y’all suggest as a way to reward employees when things are 
going well?  I give COLA plus modest merit increases every 6 months.  
I could give substantial merit increases but that plays into my phobia 
of things getting tight again.  Maybe that is totally unfounded.  I 
know when things started going well for Henry Ford he doubled pay and 
things got even better for him.


I would like to do bonuses based on my bottom line income (I think), 
but how to distribute that evenly?  Should everyone get the same 
amount? And how to relate that the size of the bonus is tied directly 
to how well the company is doing? Or should I just give really nice 
raises this go around?  Or both?  I guess if things slow down we can 
always trim staff or let attrition do it for us.  I think you all can 
understand the reluctance to give raises as it is a one way street.  
You really cannot cut pay.


I want employees to prosper and do better personally. I wonder if my 
fears are justified.  I know some of you have worked for large 
companies at certain points in your life, how did they accomplish 
this.  I know some of you have really prospered with your WISP/ISP, 
curious how you approached the whole sharing the wealth thing.


Chuck McCown
McCown Technology Corporation
8401 N Commerce Dr
Lake Point, Utah 84074
801-250-9503
435-830-4306 cell
www.mccowntech.com 
www.microtrench-blades.com 
www.terabitnetworks.com 


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Re: [AFMUG] compensation for employees

[Ken Hohhof]

Maybe others will have answers to that question, sounds like tricky territory.

 

Do you have salespeople, and are they already getting performance based pay?  
That’s the one exception that comes to my mind, but you could argue both sides 
of that one also.

 

From: AF  On Behalf Of Chuck McCown via AF
Sent: Sunday, January 28, 2024 7:18 PM
To: 'AnimalFarm Microwave Users Group' 
Cc: ch...@go-mtc.com
Subject: Re: [AFMUG] compensation for employees

 

Thanks Ken,

No stock options.  I am slowly giving the company to a couple sons that are 
putting in the sweat equity.  Still not sure about production based bonuses.  
Should everyone get the same amount?

 

 

 

From: Ken Hohhof 

Sent: Sunday, January 28, 2024 1:11 PM

To: 'AnimalFarm Microwave Users Group' 

Subject: Re: [AFMUG] compensation for employees

 

I worked for big companies in the 80’s and remember profit sharing and 
Christmas bonuses.  Then we had a period of startups with stock options as a 
huge part of compensation – the idea was you worked 80 hour weeks for modest 
pay but if the company hit it big your options could be worth a lot.  I suspect 
some people hit the jackpot and a lot more got the shaft.

 

My sense is that employees today are mostly focused on the short term.  They 
have bills to pay, they want to know what income they can count on, they 
probably don’t want to roll the dice on profit sharing or a bonus or stock 
options.  Also, Millennials and Gen XYZ I talk to seem to view employment as 
transactional, and they don’t necessarily identify with the company or the 
owners (thanks to companies like Amazon and owners like Bezos).

 

So while I don’t have any hard facts, my guess is you’re doing the right thing 
already.  If you’re inclined to tie compensation to company performance, I 
wouldn’t make it a large percentage, and I wouldn’t try to use it as an 
incentive for people to work insane hours or achieve impossible goals (like 
Elon Musk’s “extremely hardcore”).  And I’d make it fairly short term, like 
monthly or something, so employees aren’t making their families scrimp in hopes 
of a windfall at the end of the quarter or year.

 

If you do experience hard times, reduced hours might be a temporary solution at 
least for hourly employees.  Realizing that with low unemployment, some of them 
might move elsewhere.

 

The good news is that any part of your business tied to fiber projects is 
likely to have at least 5 good years coming.

 

From: AF mailto:af-boun...@af.afmug.com> > On Behalf 
Of Chuck McCown via AF
Sent: Sunday, January 28, 2024 12:16 PM
To: af@af.afmug.com  
Cc: ch...@go-mtc.com  
Subject: [AFMUG] compensation for employees

 

My latest pivot a couple of years ago to microtrenching blades, adding grout 
machines, then microtrenching saw attachments and now to a specialized type of 
vacuum excavator has gone extremely well.  Almost no software involved.  Just a 
little in a motion control PCB in the grout machine to control the hydrostatic 
transmission.  This is by far my most profitable season I have ever had in 50 
years of running some kind of hustle.  And those years of the stinger and other 
related antennas and hardware were not bad at all.  I am a bit more confident 
that these new “durable products” have more legs than the antennas that were 
radio specific.

 

But having been through wax and wane of business, economy and product cycles 
for many decades, I am always reticent to ratchet up pay.  I do give bonuses.  
I will always live in fear of not meeting payroll.  Only happened once about 30 
years ago, but that is a bad deal.  And actually nobody was unpaid but I had to 
layoff everyone.  But I digress.  

 

What would y’all suggest as a way to reward employees when things are going 
well?  I give COLA plus modest merit increases every 6 months.  I could give 
substantial merit increases but that plays into my phobia of things getting 
tight again.  Maybe that is totally unfounded.  I know when things started 
going well for Henry Ford he doubled pay and things got even better for him.

 

I would like to do bonuses based on my bottom line income (I think), but how to 
distribute that evenly?  Should everyone get the same amount?  And how to 
relate that the size of the bonus is tied directly to how well the company is 
doing?  Or should I just give really nice raises this go around?  Or both?  I 
guess if things slow down we can always trim staff or let attrition do it for 
us.  I think you all can understand the reluctance to give raises as it is a 
one way street.  You really cannot cut pay.

 

I want employees to prosper and do better personally.  I wonder if my fears are 
justified.  I know some of you have worked for large companies at certain 
points in your life, how did they accomplish this.  I know some of you have 
really prospered with your WISP/ISP, curious how you approached the whole 
sharing the wealth thing.  

 

Re: [AFMUG] compensation for employees

[Chuck McCown via AF]

Thanks Ken,
No stock options.  I am slowly giving the company to a couple sons that are 
putting in the sweat equity.  Still not sure about production based bonuses.  
Should everyone get the same amount?



From: Ken Hohhof 
Sent: Sunday, January 28, 2024 1:11 PM
To: 'AnimalFarm Microwave Users Group' 
Subject: Re: [AFMUG] compensation for employees

I worked for big companies in the 80’s and remember profit sharing and 
Christmas bonuses.  Then we had a period of startups with stock options as a 
huge part of compensation – the idea was you worked 80 hour weeks for modest 
pay but if the company hit it big your options could be worth a lot.  I suspect 
some people hit the jackpot and a lot more got the shaft.

 

My sense is that employees today are mostly focused on the short term.  They 
have bills to pay, they want to know what income they can count on, they 
probably don’t want to roll the dice on profit sharing or a bonus or stock 
options.  Also, Millennials and Gen XYZ I talk to seem to view employment as 
transactional, and they don’t necessarily identify with the company or the 
owners (thanks to companies like Amazon and owners like Bezos).

 

So while I don’t have any hard facts, my guess is you’re doing the right thing 
already.  If you’re inclined to tie compensation to company performance, I 
wouldn’t make it a large percentage, and I wouldn’t try to use it as an 
incentive for people to work insane hours or achieve impossible goals (like 
Elon Musk’s “extremely hardcore”).  And I’d make it fairly short term, like 
monthly or something, so employees aren’t making their families scrimp in hopes 
of a windfall at the end of the quarter or year.

 

If you do experience hard times, reduced hours might be a temporary solution at 
least for hourly employees.  Realizing that with low unemployment, some of them 
might move elsewhere.

 

The good news is that any part of your business tied to fiber projects is 
likely to have at least 5 good years coming.

 

From: AF  On Behalf Of Chuck McCown via AF
Sent: Sunday, January 28, 2024 12:16 PM
To: af@af.afmug.com
Cc: ch...@go-mtc.com
Subject: [AFMUG] compensation for employees

 

My latest pivot a couple of years ago to microtrenching blades, adding grout 
machines, then microtrenching saw attachments and now to a specialized type of 
vacuum excavator has gone extremely well.  Almost no software involved.  Just a 
little in a motion control PCB in the grout machine to control the hydrostatic 
transmission.  This is by far my most profitable season I have ever had in 50 
years of running some kind of hustle.  And those years of the stinger and other 
related antennas and hardware were not bad at all.  I am a bit more confident 
that these new “durable products” have more legs than the antennas that were 
radio specific.

 

But having been through wax and wane of business, economy and product cycles 
for many decades, I am always reticent to ratchet up pay.  I do give bonuses.  
I will always live in fear of not meeting payroll.  Only happened once about 30 
years ago, but that is a bad deal.  And actually nobody was unpaid but I had to 
layoff everyone.  But I digress.  

 

What would y’all suggest as a way to reward employees when things are going 
well?  I give COLA plus modest merit increases every 6 months.  I could give 
substantial merit increases but that plays into my phobia of things getting 
tight again.  Maybe that is totally unfounded.  I know when things started 
going well for Henry Ford he doubled pay and things got even better for him.

 

I would like to do bonuses based on my bottom line income (I think), but how to 
distribute that evenly?  Should everyone get the same amount?  And how to 
relate that the size of the bonus is tied directly to how well the company is 
doing?  Or should I just give really nice raises this go around?  Or both?  I 
guess if things slow down we can always trim staff or let attrition do it for 
us.  I think you all can understand the reluctance to give raises as it is a 
one way street.  You really cannot cut pay.

 

I want employees to prosper and do better personally.  I wonder if my fears are 
justified.  I know some of you have worked for large companies at certain 
points in your life, how did they accomplish this.  I know some of you have 
really prospered with your WISP/ISP, curious how you approached the whole 
sharing the wealth thing.  

 

 

Chuck McCown
McCown Technology Corporation
8401 N Commerce Dr
Lake Point, Utah 84074
801-250-9503
435-830-4306 cell 
www.mccowntech.com
www.microtrench-blades.com
www.terabitnetworks.com




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Re: [AFMUG] compensation for employees

[Ken Hohhof]

I worked for big companies in the 80’s and remember profit sharing and 
Christmas bonuses.  Then we had a period of startups with stock options as a 
huge part of compensation – the idea was you worked 80 hour weeks for modest 
pay but if the company hit it big your options could be worth a lot.  I suspect 
some people hit the jackpot and a lot more got the shaft.

 

My sense is that employees today are mostly focused on the short term.  They 
have bills to pay, they want to know what income they can count on, they 
probably don’t want to roll the dice on profit sharing or a bonus or stock 
options.  Also, Millennials and Gen XYZ I talk to seem to view employment as 
transactional, and they don’t necessarily identify with the company or the 
owners (thanks to companies like Amazon and owners like Bezos).

 

So while I don’t have any hard facts, my guess is you’re doing the right thing 
already.  If you’re inclined to tie compensation to company performance, I 
wouldn’t make it a large percentage, and I wouldn’t try to use it as an 
incentive for people to work insane hours or achieve impossible goals (like 
Elon Musk’s “extremely hardcore”).  And I’d make it fairly short term, like 
monthly or something, so employees aren’t making their families scrimp in hopes 
of a windfall at the end of the quarter or year.

 

If you do experience hard times, reduced hours might be a temporary solution at 
least for hourly employees.  Realizing that with low unemployment, some of them 
might move elsewhere.

 

The good news is that any part of your business tied to fiber projects is 
likely to have at least 5 good years coming.

 

From: AF  On Behalf Of Chuck McCown via AF
Sent: Sunday, January 28, 2024 12:16 PM
To: af@af.afmug.com
Cc: ch...@go-mtc.com
Subject: [AFMUG] compensation for employees

 

My latest pivot a couple of years ago to microtrenching blades, adding grout 
machines, then microtrenching saw attachments and now to a specialized type of 
vacuum excavator has gone extremely well.  Almost no software involved.  Just a 
little in a motion control PCB in the grout machine to control the hydrostatic 
transmission.  This is by far my most profitable season I have ever had in 50 
years of running some kind of hustle.  And those years of the stinger and other 
related antennas and hardware were not bad at all.  I am a bit more confident 
that these new “durable products” have more legs than the antennas that were 
radio specific.

 

But having been through wax and wane of business, economy and product cycles 
for many decades, I am always reticent to ratchet up pay.  I do give bonuses.  
I will always live in fear of not meeting payroll.  Only happened once about 30 
years ago, but that is a bad deal.  And actually nobody was unpaid but I had to 
layoff everyone.  But I digress.  

 

What would y’all suggest as a way to reward employees when things are going 
well?  I give COLA plus modest merit increases every 6 months.  I could give 
substantial merit increases but that plays into my phobia of things getting 
tight again.  Maybe that is totally unfounded.  I know when things started 
going well for Henry Ford he doubled pay and things got even better for him.

 

I would like to do bonuses based on my bottom line income (I think), but how to 
distribute that evenly?  Should everyone get the same amount?  And how to 
relate that the size of the bonus is tied directly to how well the company is 
doing?  Or should I just give really nice raises this go around?  Or both?  I 
guess if things slow down we can always trim staff or let attrition do it for 
us.  I think you all can understand the reluctance to give raises as it is a 
one way street.  You really cannot cut pay.

 

I want employees to prosper and do better personally.  I wonder if my fears are 
justified.  I know some of you have worked for large companies at certain 
points in your life, how did they accomplish this.  I know some of you have 
really prospered with your WISP/ISP, curious how you approached the whole 
sharing the wealth thing.  

 

 

Chuck McCown
McCown Technology Corporation
8401 N Commerce Dr
Lake Point, Utah 84074
801-250-9503
435-830-4306 cell 
www.mccowntech.com  
www.microtrench-blades.com  
www.terabitnetworks.com  

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AF@af.afmug.com
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[AFMUG] compensation for employees

[Chuck McCown via AF]

My latest pivot a couple of years ago to microtrenching blades, adding grout 
machines, then microtrenching saw attachments and now to a specialized type of 
vacuum excavator has gone extremely well.  Almost no software involved.  Just a 
little in a motion control PCB in the grout machine to control the hydrostatic 
transmission.  This is by far my most profitable season I have ever had in 50 
years of running some kind of hustle.  And those years of the stinger and other 
related antennas and hardware were not bad at all.  I am a bit more confident 
that these new “durable products” have more legs than the antennas that were 
radio specific.

But having been through wax and wane of business, economy and product cycles 
for many decades, I am always reticent to ratchet up pay.  I do give bonuses.  
I will always live in fear of not meeting payroll.  Only happened once about 30 
years ago, but that is a bad deal.  And actually nobody was unpaid but I had to 
layoff everyone.  But I digress.  

What would y’all suggest as a way to reward employees when things are going 
well?  I give COLA plus modest merit increases every 6 months.  I could give 
substantial merit increases but that plays into my phobia of things getting 
tight again.  Maybe that is totally unfounded.  I know when things started 
going well for Henry Ford he doubled pay and things got even better for him.

I would like to do bonuses based on my bottom line income (I think), but how to 
distribute that evenly?  Should everyone get the same amount?  And how to 
relate that the size of the bonus is tied directly to how well the company is 
doing?  Or should I just give really nice raises this go around?  Or both?  I 
guess if things slow down we can always trim staff or let attrition do it for 
us.  I think you all can understand the reluctance to give raises as it is a 
one way street.  You really cannot cut pay.

I want employees to prosper and do better personally.  I wonder if my fears are 
justified.  I know some of you have worked for large companies at certain 
points in your life, how did they accomplish this.  I know some of you have 
really prospered with your WISP/ISP, curious how you approached the whole 
sharing the wealth thing.  


Chuck McCown
McCown Technology Corporation
8401 N Commerce Dr
Lake Point, Utah 84074
801-250-9503
435-830-4306 cell 
www.mccowntech.com
www.microtrench-blades.com
www.terabitnetworks.com
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