Marina Dock Age, September/October 1996

Protecting Your Marinas Most Valuable Assets: Your Employees
by Dennis P. Kissman

I believe by now every marina owner who has followed the advice of previous columns I have written has come to the realization that he is in a capital-intensive service business. Of course, it is people that provide services, and, specifically in the context of a service business, it is the employees. Whether your marina employs two people or 52 people, their importance to the success of your business should not be underestimated. The fact that you are the owner does not make you a god. Every employee wants to respect and look to his boss for direction. You have an obligation to fulfill that role.

The important question for marina operators is, “How do I motivate and retain my employees?” I know many of you are saying, “Thats a no-brainer, just raise their pay and give them a turkey at Christmas.” Or the other comment I often hear is, “If they don’t like it here, let them find another job.” If you think this way, then chances are your profitability is lower than you would like.

First of all, as an owner you must realize that no employee has the motivation you have. Employees work for two things: money and recognition, usually in that order. To get a person to work for you, you must provide a competitive wage. As the length of employment increases, recognition becomes the primary reason a person stays on a job. Recognition comes in the form of both acknowledging a job well-done and financial rewards.

Even though both competitive wages and recognition through financial rewards relate to a form of compensation, they are very distinct and should not be confused. I have reviewed hundreds of marina proforma where salaries and wages rise 3 percent to 10 percent per year even though the operation doesn’t change. In the real world these increases just do not take place. A job can only pay within a very defined range. When you pay someone consistently below the range they become discouraged and leave. At the other end of the scale, if you pay someone beyond the going rate, then you are paying more than the job skills require.

The key is to implement a compensation program that is competitive in the marketplace, can be fairly administered and is flexible enough to change as the business changes. First, being competitive in the marketplace does not necessarily mean just keeping up with other marinas in the area. For example, if you have dry stack boat storage operation and you employ forklift operators and your marina is in an area where there are a number of warehouse operations that also employ forklift operators, that is the competition. You must look beyond your own industry.

Next, can your program be fairly administered regardless of the number of employees? It is very easy to design a plan that short-changes your star performers while overpaying your slackers. This often sends a wrong or mixed message to employees. The worst situation of all is when no compensation plan exists. This is an absolute guarantee that your employee turnover will be excessive and/or your labor cost high. Continue »