Communicating with employees in a small business

June 03, 2025

by a searcher in United States

I own a small store that I acquired about a year ago. I don't work in the store - it's just a side hustle. I promoted one of the workers to store manager, and she has been a tremendous help. But I feel like she is still in the mindset of "friend and coworker" rather than manager. She recently asked to increase PTO for several of the staff arguing "it won't cost anything because we all cover for each other." My immediate thought was "if people are out and everyone else can cover without excess hours, there is already excess expense ... now we would just give the money away rather than forcing them to be in to earn it." But I guess there is no additional expense since we'd probably be paying people anyway (I have gotten very significant pushback when suggesting we cut back hours during the off season). I was a little frustrated, though, because I suggested maybe giving people the PTO but paying it at 1/2 the rate thinking we could both benefit, but "no one liked that idea." I felt like there wasn't much of a give and take ... it felt more like "just take." I'm not sure any of them need to be there, and I can't afford to spend a lot more time looking for people if they decide to revolt. Any suggestions for how to respond?

Reply by an intermediary
from Pennsylvania State University in Philadelphia, PA, USA

Not sure what industry you're in, but if the store manager is valuable, I’d consider incentivizing her to help grow the business. Also, I get your frustration, but offering half-pay PTO would feel like a slap in the face to most people. That’s not a benefit, it’s a discount on rest. At the end of the day, you bought a small business. These aren’t abstract headcount lines. They’re real people who show up every day and keep the operation running. If you want them to think long-term, they need to see that you're invested too.

Reply by a searcher
from Vanderbilt University in Nashville, TN, USA

No offense, but as Roman has pointed out - these are these people's lives, so I would encourage you not to think of it as a side-hustle if you want to own and grow it long term. What's your side-hustle is how someone may be making their car payment or paying for housing. If you can afford to do PTO then I think it is probably a good compromise. But of course this is your money and business not mine... so ultimately it's your call.

+1 more reply.

Join the discussion