Automotive Personnel founder and chief executive officer Don Jasensky tackled one of the most challenging work elements facing both employers and employees — financial compensation.
Jasensky, who established his human resources firm in 1989, pinpointed what he believes are three key influences on the figure that might arrive in your bank account regularly. He articulated the elements as:
1. The need for one’s labor
2. The ability to perform it
3. Difficulty in replacing a person.
Jasensky, a longtime board member of the National Automotive Finance Association, elaborated on these points by sharing scenarios from other sectors. For example, say there is a brain surgeon who is one of only three professionals in the country who can perform a specific and difficult procedure.
“They would be in a position to charge an exorbitant fee,” said Jansensky, speculating as the cost for services rendered at $75,000 per procedure.
“With little or no competition but a steady need for this service, the insurance companies have to pay,” he continued. “There is a strong need, terrific ability to perform surgery and little competition.”
Then, Jasensky proposed that say surgeons from other parts of the world arrived, offering procedures at a much lower rate; even as a low as a third of that $75,000 fee mentioned earlier.
“Now the surgeons have a decision to make. Do the procedures for $25,000 or risk losing the procedures,” Jasensky said. “Market prices are being influenced by competition.”
Jasensky went into yet another scenario, wondering what would happen to the surgeon’s financial prospects if a medicine arrived eliminating the need for an invasive procedure and costing just a small fraction of the doctor’s original fee.
He also pointed out that these factors come into play for hourly wage workers, too. Jasensky described how an experienced roofer might command $30 per hour while a novice might only be able to get less than half of that rate.
Add in complicated outside factors such as a hurricane and an hourly wage for an experience roofer might, as Jasensky put it, “well it ‘goes through the roof.’” And conversely if a recession arrives, “there is less need for roofers, and they may need to take jobs at half their ‘normal rate’ if they want to work,” he went on to say.
Bottom line — Jasensky reminded all individuals involved in the automotive industry that their income is highly influenced by, once again:
1. Need for your labor
2. Your ability to perform it
3. Difficulty in replacing you
“Keep these influences in mind as you make educational and career decisions,” said Jasensky, who can be reached at (216) 226-8190 or Don@AutomotivePersonnel.Careers.