The best way to find middle ground is to approach the problem from both ends. Until you allow your employee(s) to contribute to finding a solution to your problems, you'll always be looked upon as the 'imperial dictator' who just doesn't understand or appreciate what they do.
Whenever I felt that my crews weren't being efficient enough, I would sit down with them and tell them what my expectations were of them. Then, I would allow them to tell me what they 'needed' to meet my expectations. Usually, a few extra bucks in their pocket was all it took to get them motivated to take fewer breaks and work harder. I just made sure the guys always understood that, in order for me to be able to pay them more, they had to perform at a higher level. That was never an issue for them. They always had the ability to work harder - they were just waiting for the appropriate form of motivation to get them to do so.
On one occassion, I sat down with my lead arborist and lead ground guy and told them both that production had to increase by at least 25% in order to meet my expectations. They told me that, in order to do that, they would have to work more longer and more efficiently. I targeted the particular issue of efficiency and asked them what they needed to take fewer breaks and put a bit more hustle in their step and they said, 'money'. I gave them each a 20% raise contingent upon their meeting my expectations of them - they had to boost productivity by 25% while still puting in about the same number of hours in a week as they had been working. They starting working more efficiently and production went up the very next day and stayed that way until the day I sold my business to my lead arborist.
Employees need to have goals, direction and incentives. Give them something to work towards, offer them clear direction and incentives for attaining goals and a business will grow and prosper.
I can agree partly with incentive motivation, as long as it is not
at the cost of damaging property and safety. I would feel if they
were working hard and seen the opportunity of making more then
they may become risky! If however they are riding the clock,taking
too many breaks or having a bad attitude and claim more money
would alleviate these problems, I can't reward that behavior. They
came to work and knew the pay but are going halfspeed, why not
just can em? I would reward them if it had been a while with good
performance and then say after a year their performance declined
because that would be the boss performance as they are due a
encouraging raise. If I was making good I definitely would want
them to. I however am in the trench not the office so this don't
apply as I know if they are good or not. I would love nothing more
than to be able to afford the best help and pay the best rate not
the going rate. It all boils down to the market and amount of work
you keep. I have many times felt like I am getting to the secure
status and could afford help full time, only to hit drought that burns
all the money made up. It is frustrating but keep chugging and try
to remain optimistic.