IF YOU PAY PEANUTS – YOU GET MONKEYS!
Let me assure you that the way you get to attract and more importantly keep your best employees, is by respecting them and paying them what they are worth and a bit more too.
The basic reason that people work is because they need income to feed and take care of their families, and with a little bit of luck they get to do a job that they absolutely love.
So with my owner and entrepreneur’s hat on, as well as a lifetime of hiring and getting to keep some amazing people to work with me, I can assure you that it takes a lot more money to replace the great people that you already have than it does to hire and train people to take their place. You see just the disruption factor is immense, and this then coupled with the time to get the new person up to speed, training them to your way of doing things, getting them into your culture, and then finding out that they were not as good as the person who you let go or fired.
Seriously look after your employees, get them to feel as though work is their second home, pay them on time, surprise them with extra’s now and again, like tickets to a show, dinner for two, a voucher to buy roses for their spouse, be imaginative, they will appreciate it.
In our business I made sure that the employees knew that their salary was the base and they would get bonuses based on the profitability of the company. Now these bonuses were not in a strict ration based on salary, but based on performance, and that was adjudicated by their fellow workers.
Here’s how the system worked:
1. I let everyone know that the first X % of the profits would go directly back to the employees. You have to decide what that number is; I cannot do that for you.
2. From this pool of money I decided what the various members of the leadership team would get as a bonus, after all they reported to me directly.
3. The balance of the pool of money was then divided for each department and it was bases on the % share of the total salaries of the company. In other words, if department ” A ” had 25% of the employees’ salaries of the company, then that was their pool of money to share.
4. Each department head would then do an evaluation on each person and would attribute points based on various criteria. There were many different criteria, but they included energy, compatibility, culture, effort, eagerness etc.
5. The net result was that someone who was the lowest on the totem pole in that department could in theory get the biggest bonus. It was not based on salary, alone. This way it reinforced the fact that we want team players, and employees who clearly understood the corporate “Brand Commitment Statement – It’s all about the work, the work, the work, all for the betterment of our clients”.
The net net, is take care of your employees, don’t be greedy and share the wealth!!!!
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Jack Sims: Voted as one of the best keynote speakers in America, by meeting planners, is the founder of two international corporations including America’s largest marketing agency. He is also the author of two business growth books including “Growing small Businesses into BIG Brands” and “How to Seriously WIN at Business & Golf”. He is a guest lecturer at the Institute of Business (Trinidad), a member of the National Speakers Association and is a Professional Golf Teacher in New York. He can be contacted at firstname.lastname@example.org – www.jacksims.com – 914 509 5170 – www.jacksimsbusinessgolf.com