Calculating the cost — and benefit — of good employees

Calculating the cost — and benefit — of good employees

How much is a good produce professional worth? Columnist Armand Lobato takes a look at how labor market conditions and employee intangibles factor into pay.
How much is a good produce professional worth? Columnist Armand Lobato takes a look at how labor market conditions and employee intangibles factor into pay.
(Photo courtesy of Armand Lobato)
by Armand Lobato, Dec 27, 2023

I spied Russ T. Blade quietly reading something on his phone near my desk. “Rusty,” as regular readers may remember, is the miniature, imaginary produce manager who occasionally appears to talk shop.

Me: What’s so interesting? Doesn’t anyone read anything non-electronic any longer?

Rusty: Ah, just looking over a possible new job prospect. Even though I’ve been managing this fruit stand for years, I’m curious to see what else is out there. Ever do that?

Me: I always say it never hurts to talk. Although in the winter of my career, that isn’t so much the case for me. Aren’t you happy?

Rusty: It’s something I overheard my store manager say the other day to his assistant. He hinted that … well, he thinks we’re all overpaid. Can you believe it?

Me: Actually, no. Hasn’t he heard? There’s real labor turmoil going on these days. Especially since COVID, came along, several things stand out. First there was the “great resignation,” when a sizeable number of us boomers used the pandemic as the point to say, “To heck with it” and retired while the getting was good. Also, the U.S. population growth is flat — not a deep bench, so to speak. Not to mention the staggering inflation; in the past few years everything has skyrocketed.

Rusty: For everyone. That includes housing, transportation, fuel, heat, food — and with it, the labor situation.

Me: Exactly. So how does your boss get off thinking you’re living large? By some rough estimates, if you aren’t earning twice as much as you did, say, 15 or 20 years ago, you’re effectively behind. Wages are determined by what the market will bear. I know there’s a few ne’er-do-well employees out there, and benefits are costly, however, an employer ought to feel blessed if they have a conscientious team with a trouble-free background who can be relied on to be where they’re supposed to be, doing what they’re supposed to be doing, on a consistent basis.

Related: More insight from Armand Lobato

Rusty: I know when I drive by my local fast-food place, they’re hiring anywhere from $15 to $20 per hour!

Me: Yup, and I know the meal prices reflect it. I hired an electrician for some maintenance at home last fall. Even though I’m a handy guy, I was stumped. He brought about $60 worth of supplies and in two hours had everything fixed, the bill was nearly $700. 

Rusty: That’s outrageous!

Me: The electrician fixed things that I could not. He not only brought his bag of tools. He brought 30-plus years of know-how. What I paid for was what the market would bear, and his experience is what made it look easy. The bill stung all right, but I understand.  

Rusty: I know that every market is different. A produce manager like me earns more or less depending on an area’s size, location, population and other variables.

Me: Ever wonder why the backup shortstop for the Colorado Rockies earns $700,000 per year? Sure, it’s a tough road to the big leagues, but — like everyone thinks at first — that money for what he does? It all boils down to talent, labor supply and demand, and what the market will bear for the job. Even though a shortstop makes things look easy, too.

Rusty: Don’t even need college for some next-level jobs, though I suppose it helps.

Me: Sure, it can help. I know a produce guy who went back to school as an adult, earned his bachelor’s and master’s degrees, just so his resume would stand out. It worked, although he says no one has ever even asked to see his degrees or ever asked him to diagram a sentence or, well, anything. With his student loans, he’ll be paying for some time, too. What’s that extra schooling worth? An extra $10,000 or $20,000 per year? Not necessarily. And, as a salesman, he travels a lot. He’s away from his family more than anyone realizes. How much of a premium is that worth?

Rusty: All in what the market will bear, right? I would think any reasonable employer wants to attract and retain top talent by accommodating what employees need.

Me: Partly. But just like the electrician, many produce jobs require a certain amount of expertise. It’s that experience, not to mention the close relationships built over the years, that make someone especially valuable. It’s the years and talent a produce professional brings to the table that makes the job sometimes look easy. Talk to your boss, and level with him. Perhaps his outlook will soften.

Rusty: It’s a two-way street. After all, what works best for an employee is ultimately best for an organization.


Armand Lobato works for the Idaho Potato Commission. His 40 years of experience in the produce business span a range of foodservice and retail positions.









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