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need advice on problem employee

M

mp4doggie

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Let me 1st salyy I am a fairly new owner , we have had this place for less then a year .so I am still making newbie mistakes. I had this guy that would come around looking for a second job and due to his persistence we decided to give him a chance . The atmosphere is very pretty laid back but we always have a talk with new employees about asking for loans from me.

Unfortunate he has fell on some tough times and will constantly call looking for extra hours or just come right out and ask me to give him money with the promise to work it off .

the problem we really only need him on Friday and Saturday nights

so im really just looking for other that have been in this situation and some advice on how they handled it
 
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mp4,

That is a very tough predictament to be in. When I was a manager for Papa John’s Pizza, throughout my time I would have employees come to me and ask if they could borrow money, and I always declined to lend, but depending on circumsances and my financial state would sometimes give.

Depending on his situation, meaning if he has no money due to drugs, alcohol, or general mismanagement, or if he is just trying to provide for himself and / or his family and doing everything he can, depends a lot on how to respond. Assuming the first is true, then I would let him go as it will be problems down the road for sure. If it is the latter, see if you can (assuming you are financially able) create some work for him to do. Door hanging and business flyering is a great marketing technique, that I have had good response with, and allows you to provide more hours to your employee’s schedules (both from the actual marketing and the hopeful result). Other things include sign shaking, sampling, etc. Other than that, I would shy away from just giving as it may become a habit.

Hope this helps!
 
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Loaning cash is a risk that can backfire hard. It can create hard feelings if you loan to one and not another . . . what happens when the employee defaults . . . what do you do the second time, the third, the fourth - you just kick the can down the road and have to shut it down eventually.

One answer we had is giving people advances on paycheck for hours they had already worked, but hadn’t been paid for. It ain’t much, but it keeps me from being all tied up in knots over it. Whatever you do, I suggest putting it in writing, getting a signed obligation to pay, and remember that you are loaning money that you will NEVER SEE AGAIN. You may ge it back, but I see it as giving the money away and maybe being surprised. If it is money you need to see back, then I reommend you not loan or only loan to those with a history with you and credibility.

Another suggestion is to create a rolling employee lon fund of some sort. You add a small amount each month to help it grow . . . maybe based on employee performance. Funds are loaned out up to a limit each time, limit how many times a year it can be called on. Repayment terms would include some interest to keep the fund solvent. No funds in the till, nothing to loan out. You could even have an employee vote to permit the loan if you want . . . ever default and you are ineligible (if not already fired). Just incomplete thoughts about this coming as I type.
 
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We have owned our place for almost 19 years. Like you we are very laid back. Being a small mom and pop shop we have, over the years, become very “invested” in our employees.

The first several years we would often “lend” money to employees. Yeah…that doesn’t work out. I am still owed several thousand dollars. It wasn’t until we hit a rough spot and I couldn’t afford to lend money and had to say no that I realized nobody cares or expects it. Now that we are older and wiser the answer is a simple nope.

I do give employees their check a couple of days early if need be. I tell them they can get some food, bum a smoke but I just don’t have money to lend out. If an employee needs 20 bucks for a special occasion or whatever I will find something they can do to make MY life easier and throw it their way. I offer extra hours and offer to pay them early.

You aren’t in the lending business you are in the pizza business. Once someone starts borrowing from their job they are usually in deep and really isn’t a blessing to be lending them money. They have others in their lives who can lend them money…and if they aren’t there is probably a reason.

Keep your money…don’t become a bank. Once you say no a couple of times it will be a thing of the past and you will have some extra cash to do what you want with YOUR money.

:mrgreen:
 
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You know, one thing I’ve learned from Judge Judy, besides don’t sell a used car to a friend, is if you loan someone some money, expect not to get it back. If you’re not in the financial position to do that, then don’t loan the money.

Ok, that’s two things. 😃
 
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We do not do loans, but we do advance up to $40 out of the next paycheck. The advance is cash and the amount advanced is deducted from the next check.
 
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We have an “Owes” section on the time sheets where we will let staff book up food from their pay. We deduct any owes at pay time.
No cash is booked up.
I remember a sign we had in our workshop of a gas station we once owned many years ago. It said “We don’t give credit and the bank doesn’t fix cars”. The same applies to staff - WE ARE NOT A BANK !!!
Just beware of the guy asking for money. Keep a close eye on the till and any expensive items or stock.
People asking for loans tend to be those with fast light fingers when they can’t get a loan.

Dave
 
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Got a loan from the store where I work. Fifty dollars gets taken out of every other check to pay it off. No interest. Our owner’s awesome!
 
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