Opening A Business In DR

[BelindaCooperstone]

Hello, I purchased a business in the DR and will be taking possession in 90 days. I have a few questions about locals for employees. Obviously I want to hire locals to work with me, not only to help me learn the customs and the lay of the DR on the business side, but to help keep them employed and hopefully give back to the DR.

I have been going to the DR since I was 14yrs old (much older now) I love everything about the people and the Country. But I have never been an employer to any D's. The kind of business I bought is not new to me I own two here in Canada. I know how to run them and have done very well, hence the chance to be able to do the same in the DR. I know how employees are here in Canada but no idea about in the DR. What kind of workers are D's? Are they hard workers or would they rather sit and chat? Would they take an Expat seriously or snicker at them when their back is turned? I have always been a fair boss and love to work along side my employees and not hang in the office and make them do all the work. I have no problem doing something for an employee if I see they are busy. But I expect them to respect me and their job. Like I said I am a fair boss but I can also be hard if I need to be, which here in Canada I have not had to be hard to often as my fair ways wins over here. They see me being fair and working with them and they respect that.

What should I expect employing D's?

 

[mountainannie]

Are you in for a shock!

Hello, I purchased a business in the DR and will be taking possession in 90 days. I have a few questions about locals for employees. Obviously I want to hire locals to work with me, not only to help me learn the customs and the lay of the DR on the business side, but to help keep them employed and hopefully give back to the DR.

I have been going to the DR since I was 14yrs old (much older now) I love everything about the people and the Country. But I have never been an employer to any D's. The kind of business I bought is not new to me I own two here in Canada. I know how to run them and have done very well, hence the chance to be able to do the same in the DR. I know how employees are here in Canada but no idea about in the DR. What kind of workers are D's? Are they hard workers or would they rather sit and chat? Would they take an Expat seriously or snicker at them when their back is turned? I have always been a fair boss and love to work along side my employees and not hang in the office and make them do all the work. I have no problem doing something for an employee if I see they are busy. But I expect them to respect me and their job. Like I said I am a fair boss but I can also be hard if I need to be, which here in Canada I have not had to be hard to often as my fair ways wins over here. They see me being fair and working with them and they respect that.

What should I expect employing D's?

OK - now I do not own a business so there are many people on the Board who can give you better advice BUT here are just a couple of warning flags for you ---
1) set your job requirements VERY high - much higher than you would - i.e. for the education level - if you would employ a high school grad - look for a college grad here.
2) Get a good and honest lawyer to help you with everything because the labor laws here are complicated and very strict- so make sure that you just employ people "part time" or for a "trial period" - etc.
3) Pay more than anyone else in your field and expect them to work harder while they are there but not necessarily longer hours --- the local businesses expect massively long hours for minimum pay so if you have a reputation of being a "good place to work" you will get the best,
4) get legal with everything as soon as you can - i.e. taxes, payroll taxes, social security and all that
5) give them private health insurance if you can afford it
6) never give an advance on salary
7) give a clear set of policies on days and time off -- check with your lawyer-- you are not going to BELIEVE how many holidays there are here - and give them reasons for staying with you - a track for advancement
8) disable their cell phones while at work or you will never have anyone doing anything (ok - this may be harsh but I have had to ask more than one sales clerk to get off the phone to help me
9) assume that they know nothing -- really -- you just have to assume that because many simply do not have any experience in working for anyone except Tio Pepe or whomever - and if you assume -- then you will get angry at them for something that is not their fault.
10) hire Dominicans - not Haitians, not French, not English, not Americans, not Canadians -- even though the others may be better qualified and willing to work for the same amount of money -or less- or be better qualified. It will serve you well in the long run.
11) Bond with them - yes, indeed they do prefer to sit and chat (who doesn't?) and they adore "company events" - the Capital is full of conferences, and events where the best companies bring down their employees for the day - so if you have little festivals - something that makes it FUN to work with and for you - that is going to make you beloved.
12) Surprise them with rewards

The Dominicans are whip smart people but suffer from a lack of education and training-- so assume that you are going to have a longer learning period, a longer start up time, than you would in Canada. And your every move will be watched and broadcast. Every employee encounter will be noted and reported.

You've got guts! I like that in a woman! Welcome to the DR! May the road rise up to meet you.:bunny:

 

[BelindaCooperstone]

Thank you for your reply, I appreciate it. I already have a lawyer and he already looked into the laws. I plan on paying my new D employees for holidays as I do in Canada, if it is a National holiday they will have it off with pay, if they work it it will be time and a half pay.

I never expect my employees to work for nothing, I will employ the same principles to my D' employee's as I would my Canadian employee's. I will have a health care package, Part-timers will be less than full-timers obviously but all will have a medical package. As for cell phones, even my Canadian employee's are not allowed those, so that will be understood in the beginning. I will treat my employee's VERY fair, as long as they treat me and the job with the respect it deserves. As for wage it will be higher than Minimum wage to start, even here in Canada I do that, I do not believe in the Government's wage program, it is never enough to live on. Even with me in the DR I will still have my two Canadian businesses and I have to say DR is my Baby, I have wanted to do this for a long long time, My drive in Canada is for this goal.

 

[jorgesarduysousa]

out of curiosity, what are you opening up?

 

[mountainannie]

Other requirements

Yes - all that is good but note that Dominicans are also entitled to an extra MONTH's pay at Christmas - after they have been working full time for a year- and you will owe them severance if you let them go so you will have to compute that into your business plan.

I don't know what kind of business you are opening but "more than the minimum" is also not going to do much -- the minimum here is $4400 a month - which is $125 so if you just pay that - you are condemning your employees to starvation and/or crime.

Watch what is happening with crime and corruption - even with the police/army who are paid- some of them - well above- some three times- the minimum. I doubt that on the North Coast you will find anyone with a lot of skills who is going to work for less than $8-10,000 pesos a month-- otherwise it is cheaper to turn to the "dark side", so to speak.

But, of course, I don't know what sort of business it is. Somehow, i am assuming that it is a shop- but perhaps it is a beauty parlor- or a restaurant of whatever...

A living wage is more like US $800 or 28,000 pesos in the Capital and the expat havens. Only in the campo, growing one's own food, or living with an extended family can one survive here on the miniumum. Good honest but illiterate housecleaners are making $8000 pesos - and you are going to want literate, one assumes?

You will get what you pay for- including strategic house robberies of the rich gringa who comes down, stays in a resort, then buys the big house and exploits the locals.
The people that I know who have made it here come in very low profile, live as close to natives as possible, don't flash their money or their competence around and show themselves respectful and willing to learn from the locals.

There is a common danger here - that most of us have run into it- in thinking that the system that we are used to - the "Anglo American" system in particular, but I have seen the French trip up as well - is in place here -- It is not. The Italians seem to have done the best at integrating here - at figuring out the way things work and how to work it.

You are going to learn lots lessons here - but if you are wise- your first one will be to drop all the "as I do in Canada" stuff.

Because, Dorothy, we are a long, long way from Kansas. And Ottowa as well.

Good luck!

 

[MikeFisher]

that long post with advice about how and who and why or why not to employ employees for a business is not bad, but such hints can not be given in general for any kind of business. it depends a lot on the kind of business, the kind of employment given, like jobs where people work with their hands like on a construction site, or jobs where the individual has to use his/her brain to take own decisions on his/her job, or just simple office jobs where one sheet of paper has to be stored in a specific folder aso aso.
what business is it??
Mike

 

[CFA123]

Belinda, this isn't intended to be offensive... but you have a lot to learn. It's small cultural things, labor laws, incorporation laws, tax laws, how to get the most out of your people. Depending on your type of business -dealing with drug dealers, police, drug dealing police, aggressive competitors, vendors, contractors, etc.

There are many very hard working Dominicans. Some would meet the standards you'd expect in the U.S. or Canada. In general, I've found that people work very hard, but inefficiently and aren't great at repeating tasks consistently.

Many foreigners fail in running a business in DR... some succeed. Asking questions here won't really give you much insight. You just have to get started and work through it day by day.

You will learn many things in the first days, weeks, months. Then after a while you'll realize what you learned wasn't quite right. If you have the right attitude, it's fun. But it's also definitely a challenge.

And, welcome to Cabarete!

 

[wendymathews]

Belinda, I don't understand why you're not telling people what your business is. Don't you want people to come? Is there an element of surprise you are going for? I for one would love to know.

 

[SKing]

belinda, i don't understand why you're not telling people what your business is. Don't you want people to come? Is there an element of surprise you are going for? I for one would love to know.

ditto
shalena

 

[andrewsw]

Opening A Business..

Well I found this thread very interesting and full of great advice. certainly opened up my eyes and will allow me to make some very good corrections to my business plan. Thanks to all who shared.

 

[jorgesarduysousa]

pretty sure its an escort service

 

[BrightBuz]

Same here, I find all the exchanges in this thread very informative. I'm posting a new thread on preferred accounting software, perhaps you guys can help me there too. thanks