Advice needed: Full-time staff needing extended time off to recover from surgery

[QuokkaCoffee]

Cross-posting from the Super Seller Lounge!

Hiya, team!

I'm in a bit of an interesting bind at the moment:

My only full-time staff member needs extended time off to undergo surgery, which itself may require 6 - 8 weeks of post-op recovery time.

I've entrusted them with day to day operations and they're under contract for a set number of hours per week, but unfortunately haven't accrued the necessary leave to cover that much time away.

We were hoping to launch some new kitchen lines in the next few months, after having hired an extra hand to help with production, for a much-needed boost to our bottom line (and some breathing room).

I feel paralyzed by decisions and their various permutations:

1. We're in an okay place cashflow-wise to pay the bills, run payroll, and put a little away when tax time comes. Do I take out a loan to cover payroll for temp staff until permanent staff can bounce back?
2. Do I hit 'pause' on their contract and then 'play' when they're ready? Should I offer a small stipend to cover some basic expenses while they recover?
3. I know, based on extended conversations, that this is someone who essentially lives paycheck to paycheck and has dealt with chronic pain and the kind of mental health which comes with that territory. 

Even though they're required to work that set number of hours, on plenty of occasions I've sent them home early or closed shop to help manage said chronic pain and mental health.

I'm a bit frustrated at our limitations as a small business--if we were larger I feel like we'd have so much more leeway, but at the same time it's kind of freeing to write the playbook as we go.

Appreciate anyone's thoughts and suggestions!

Hope everyone's taking good care of themselves,

Kat

[DLRosenberg]

Ugh- this is super tough. Can they qualify for disability? 6-8 weeks sounds like temporary disability to me...  We carry disability insurance for this purpose. Perhaps with the disability you can add an additional amount as "sick time" and then hire temporary help in the meantime.

I hate to be crass but not even the biggest and wealthiest company would pay an employee for 6-8 weeks unless sick time was banked, etc.

We do offer sick time - employees earn 1 hour for every 30 hours worked. with a max accrual of 40 hours.. we do not cap how many times they can earn earn/spend that time and we do roll it over year to year..... once that bank is used- it is used.. anything long term the employee would need to go on disability.

Thinking more about your situation, there is no guarantee that your employee will come back- leaving yourself exposed to not having the resources you need to run your business.

So I would pause her contract- encourage disability (If you have it- and if you don't you should get it) and hire a temp.

I hope this rambling makes sense....

[ElisabethB]

Hey Kat! Thanks for sharing this tough situation - hoping folks will have some advice for you! It's obvious you care for your employee, and as someone who struggles with chronic pain, I just want to say it's awesome that you're considering their needs as well. 💛

[DippinDotsGC]

1. Find the minimum that you are required to do/pay based on your federal & state laws or awards.  Whatever you decide to do should at the least meet these requirements.

2. Ask your staff member what they're hoping or expecting should happen - they would be aware of the state of the business cash flow (as you are aware of their financial position). They might have a very reasonable suggestion that everyone is happy with.

3.  I'm not a fan of loaning for expenses like payroll (feels a bit like putting groceries on a credit card - potentially awesome but if things don't go as plan the interest could easily get out of hand!) Use with caution if absolutely necessary.

4.  Can your 'extra hand' that you've just hired step up to take on enough duties for 2 months? 

5.  A stipend would be an extremely generous offer - your staff member would not be expecting this - would you expect it to be repaid?  Is that something that seems possible knowing they are living week to week? 

[JUYBoutique20]

A really tough situation indeed.  I would definitely pause the contract and have her sign up for disability insurance.  Do you know if she is going to come back after this leave?  

[newlinecheckout]

Hi Kat! That sounds like a really stressful situation to have your only full-time staff need time off. Maybe self-ordering kiosks would help take some of the pressure off while short-staffed? Lots of coffee shops are rolling out kiosks for this. Here's an article with some examples of how Square sellers do this with Orda Express, hope it helps!

[MudFire_Deanna]

Having just been through this with Daphne and an 8 month almost total hiatus - I worked from the hospital and home on back office things but we had planned an expansion and some renovations and it was a stressful time for work and the business and I truly have empathy for your decisions but having lost our first business Atlanta Clay (2008-2014) it was maddening to see how expressions of love and generosity became the things that undermined cashflow and allowed our business to start slipping. I would definitely caution against a loan. 

The rehab facility where we were staying for Daphne to get care walked people through a disability filing with the State of GA if desired. For us it was better to keep ourselves on payroll and we were fortunate enough to be able to do that during everything. 

[credereorganics]

Dear Kat:  

First and foremost. Breathe. Know all will be well.

I realize you want to be kind. But your business supports you and your family so there is only so much you can do. 

If the employee is valued, then perhaps a simple solution can be established. You are not large enough to pay them for work not done. You can not extend yourself to help them. All relationships must be a win win, for both of you.

Can the employee do anything at home for your business?  If yes, keep them on part time. If no, be kind and inform them that at this time you must let them temporarily go.  YOU, Kate, can not be responsible for their health and state of mind. YOU must be accountable to you and your well being, and the well being of your company and all that depend on your company.

I know its a tough decision. Do not take out a loan to keep an employee that is not contributing to your bottom line. You are too small to take on that burden.

Your employee will survive.  

You have been more than generous and accommodating to this employee including closing your business to facilitate their needs. It is time to let them go and find someone who better fits your business model.

You and your business must survive. Be kind but strong. Your employee can not support your needs at this time. They can apply for unemployment, and disability.  There are a plethora of social services available to keep them afloat.

You need to concentrate on your business being successful. Do not take on someone else's burden.

Know that all will be well.

Peace and hugs,

Rebecca

Credere Organics

[alexandriak]

Kat as many others have said the fact that you have even thought out some possible solutions and everything you've already says shows that you're a good employer. 

Many have already given you excellent advice, so I will try not to repeat what has already been offered. 

1. Look at your numbers and see what you can actually afford to help with. If you can't help them with anything without putting your family and your business in a tough spot that's the reality. It may not be a fun one but if that's where you're at that's where you're at. They can't and shouldn't fault you for that. WITH that said, could you offer to make them a meal each day? Something they can keep in their freezer and heat up as needed as they recover?

2. While this may not help right now, look into offering a short term disability insurance for your full time members. I'm not sure what the cost would be, but if it's fairly inexpensive, maybe this is something you could start doing for this team member when they return? May offer you a peace of mind should something like this arise in the future. 

3. Understand that their financial situation isn't your responsibility. (note I am also reminding myself of this once a month). Sometimes people make bad decision after bad decision and can't get themselves to stop the cycling. Sometimes it could be a lack of resources but based on your post I am going to say it's probably not for lack for resources/people who would care enough to help this person be smarter when it comes to funds.

[Donnie-M]

@alexandriak We offer STD to all our full time employees paid fully by us.  It really makes a difference, it covers 60% of their regular wages up to $600 a week for up to 6 months I think.  I have had several employees become mothers and it is nice to be able to offer that benefit when they are out of work at the end of their term.

[lawnbrook · Accepted solution]

Kat,

Incredibly tough situation,

In our business, our one and only Chef is pivotal to our trade, so when she goes down, we don't trade. We, like you, are not big enough to wear the burden of supporting someone through a situation like this. As you are no doubt aware, our hospo award does not require us to provide any sort of support outside of paying for sick leave, then holidays.. then unpaid leave.

I think your employee would understand your business, and know that there isn't the margin there to support them through their break. At the very least, she should be happy if there is a job to come back to.

Pre-covid the chef we had was very hard work to manage, constantly made bad decisions. She used her jobkeeper [payments to buy a trail bike, came off and did her ACL.. because she needed to be attended through the public system it was  going to be months before it was better. Luckily we basically managed to let her go based on the whole COVID situation and the fact that she could no longer perform her duties... We've hired everyone on a casual basis ever since (and have our original awesome chef back YAY)

IMO,

Your employees situation is not your fault, nor your problem. You never know what is around the corner so don't over commit. I'd live up to the responsibilities outlined in the award, and no more (unless the person is super special - it doesn't sound like it).

I'd be much more concerned with filling the hole in the meantime. As generous as it is to support someone through health and mental health issues, few small businesses are in a situation to do so.. If you are - then props to you..

Bruce

[QuokkaCoffee]

There's a bit of sunk cost fallacy going, for sure. The relationship with this employee started when they were frequenting us as a regular, then through a redundancy, and we offered them a casual position which then became a full-time contract... so yeah, hard to see people as just line items in a budget.

Thank you for your wisdom, and hope you're having a lovely Easter break. 🙂

[BeNatural]

Hi everyone,

About your situation, it is very difficult to find a balance. If you are located in Victoria the Government has looked into casual and Contract workers and approached it this way :

Workers who sign up can access up to 38 hours a year of sick and carer’s pay when they’re sick and can’t go to work.

Payments are made at the national minimum wage ($21.38 per hour) and fully funded by the Victorian Government at no cost to businesses.

you may encourage your staff member to sign up. It may not cover the full 4-6 weeks however this should be of some assistance.

wishing you the best outcome,

[EBRHR]

I don't know what state you are in, but some states (I'm in Texas) offer medical "unemployment" to help with exactly this.  Check with your state to see what they can do.

[PartyManiaMD]

While I disagree with some of the opinions offered I think it really comes down to your Financial situation, how long the employee has been loyal to you, and your business situation. 

At the end of the day most businesses cease to exist without employees and loyalty is a two way street that businesses forget about when it suits their needs. 

I'm personally of the opinion that businesses need to be more flexible, more generous, and more caring in a world where competition is at an all time high. The businesses I see struggling to staff are also the ones that have super high turnover because employee morale is never looked at as something more than lip service. 

I remember one corporation I was working for gave the equivalence of $5 per employee during an employee appreciation event, this is a company that posted billions in profits so they were not hurting for cash by any means.

Personally I scrimp and save where I can but my employees work hard for me because I recognize them as more than a labor cost line item.

I'd personally encourage them to look at combinations like paid time off, unemployment, etc. 

As to running your business, are you capable of running the day to day? I don't mean this in an insulting way but I feel like a lot of small businesses lose sight of running the business once they get through that hump of opening. I think the key is to be able to adapt so that when situations like this pop up it doesn't feel as though it's the most pressing issue.

[Donnie-M]

@QuokkaCoffee One good rule is you never make a position for a person, you find the person for the position.  That said, I appreciate the compassion you have and trying to do the right thing for the person.  I think finding the right balance here is important for you as a person and important for your business.  Business can be a fragile thing, so don't underestimate the time, energy, and money you are putting into this.  So I give you my suggestion, before I read anyone else:

If they qualify for some type of government benefit for temporary disability/illness, then I think I would be comfortable pausing their contract and helping them to get that assistance.  That is what these types of programs are for.  I also think that maybe a small severance would be best and let them be responsible for budgeting, even though more than likely they would blow the money based on what you said.

I would lean towards ending the employment, look for a replacement that is a good fit for your business and hire them at least temporarily to try them out.  If the employee can recover and return, that is great, and I would gladly have them back and figure out how to deal with extra staff, vs. what you are now which is not enough staff.

Definitely keep your heart in the right place, but do not take on responsibility for someone else's poor decisions, or problems that are completely outside of your control.

[Allenjacfab]

Hi Kat,

This is a tough situation and you have handled it thus far very fairly. We carry disability insurance, both long and short term. The premiums are very low for the coverage we get and it pays up to 70% of their typical pay tax free. Aflac also offers private policies for a low cost which might be a good option for your FT employee. You may want to consider looking for a stay at home Mom that is looking to augment income while the kids are in school. This may help you cover some of your more pressing needs. You may also want to look for an intern that will be out on break from college at the end of May as a short term employee while your employee recovers.

Best of luck to you!

Liz

[QuokkaCoffee]

Thanks so much for everyone who took the time to respond to this thread!

Everything that's been said so far lines up pretty well with the advice my insurance agent, accountant, and peers have provided, and I'm grateful to be surrounded by so many sympathetic but firm people. 🙏🏽

At this stage, we've cut back our operating hours to focus on giving our newest kitchen hire the best possible chance of success at launching new product lines + focusing on catering = better financial outcome in the long run.

Due to our area, we don't get a lot of foot traffic and people don't get much of a lunch break to visit us; betting on products that are delivery-friendly/are pre-paid and bought in a set volume has worked really well for us in the past.

And so: short term pain, long term gain.

My staff has had the surgery already and is in recovery. I've decided to let her complete her full-time contract when she's able to come back to work, and probably transition her to a less important role if she's still happy to stay with the company.

[Anthem]

I have nothing to add to the many great comments already provided other than to share the sense of pride it gives me to be part of a community that is so knowledgeable, vulnerable with the difficulties of this life, and willing to share their experiences with others for their benefit. Kudos to you all!