My employees are entertaining again. Ouch!

Dear Aunty B,

An old problem has resurfaced and I want to nip it in the bud. My staff, who showed a lot of restraint in the GFC years, are once again taking clients to very expensive lunches. I just saw an invoice for$515 for three people at a restaurant that I would never dream of going to because it is so expensive. Yet this is the second visit for one of my young sales guys! The sales director has defended him with a “everything has gone up a notch” excuse and that our competitors are spending that much wining and dining clients so we have to be part of the game. But while we provide much better service, we are a small business, not a huge company with vast corporate expense accounts.

Also the guy didn’t even ask my sales director for approval. Just came back from lunch and put it through with his expenses.

Don’t Want To Play,

Moorabbin

Dear Don’t Want To Play,

Sucks, doesn’t it? Why do they get the gourmet while you eat a shit sandwich? Probably eaten at your desk and probably alone, because staff would rather stick a fork in their eye than eat with the boss.

 I think you are right and wrong.

 Right because this does need to be nipped in the bud. Set an amount and type of restaurant for client lunches. Make the sales staff get approval for anything over that amount. If they don’t get approval? Make ’em pay.

You also need to reiterate to them that while you play in the big league, your cost base is a different matter. So what if the GFC is over? The same restraints still apply. Also give your sales director a budget for just for dining and make him responsible for it.

Lastly, teach them to be smart. Lots of great restaurants open all the time. Tell your sales guys to take your clients to the “latest and coolest” restaurant as these are often more fun and not nearly as expensive as the big names.

Good luck!

Your Aunty B