Swim Clear of the Compensation Undertow
Swim Clear of the Compensation Undertow
· Increased sales and revenue
· A leadership team that can grow the company
· A focused and dedicated, high-performance high-involvement workforce
You have the right people, right products/services and the right strategy. But, you are still missing the mark on realizing your true revenue potential. Have you ever considered that your compensation system is actually rewarding the wrong behaviors and corresponding results? Worst yet...maybe your compensation system is undermining the overall success of your company.
Yes...it is not all about money. However, money still weighs heavily into the human behavior equation.
Three questions to ask in aligning the right compensation system with your company's desired business results are:
1. What results are we looking for?
2. What behaviors will achieve these results?
3. What compensation system will drive these behaviors?
Properly configured compensation systems can have a tremendous impact on your company's success. A sound compensation system will attract the desired type of employee. It is also a motivator, a retention strategy and a powerful statement of company culture, as well as an investment – not a cost!
And, it should be tied to performance!
A pay compensation system that delivers an ROI and creates a high-performance workplace culture where employees think and act like business partners is a huge asset to you as a business owner. Your team will be motivated, and the traditional employee relationship can be transformed into a business partnership where everyone is focused on cash flow, profit and customer satisfaction. And that's great news for your bottom line.
A compensation system aligned with your company goals will have the following effects:
· Focus. Aligns day-to-day operations with company strategy and business plan.
· Commitment. Enables individuals and teams to develop action plans that improve results.
· Accountability. Measurement, performance feedback and action plans establish an environment of corrective action and self-imposed accountability.
· Empowerment. Empowerment becomes a reality. Employees are expected to make decisions, take action and assume responsibility for outcomes.
· Quality Decision Making. Employees at all levels understand what the organization must do to be successful, and their role in achieving the objectives.
· Efficient Resource Utilization. Forces the organization to evaluate all activities, including new opportunities/initiatives, in terms of how they align with overall strategies.
Developing an effective package to attract, motivate and retain your quality employees is a challenging task. So, to get the performance and profit you want, consider the three questions asked above as you review your existing compensation system, or entertain the idea of a new compensation system. You may realize that you have created a negative undertow inside of your organization.
Take the first step – evaluate your current plan against your desired business goals in order to develop a framework for next steps.
Swim Clear of the Compensation Undertow - To learn more about this author, visit Mike LeMaster's Website.
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Would you like to see these inside of your organization?
· Increased sales and revenue
· A leadership team that can grow the company
· A focused and dedicated, high-performance high-involvement workforce
You have the right people, right products/services and the right strategy. But, you are still missing the mark on realizing your true revenue potential. Have you ever considered that your compensation system is actually rewarding the wrong behaviors and corresponding results? Worst yet...maybe your compensation system is undermining the overall success of your company.
Yes...it is not all about money. However, money still weighs heavily into the human behavior equation.
Three questions to ask in aligning the right compensation system with your company's desired business results are:
1. What results are we looking for?
2. What behaviors will achieve these results?
3. What compensation system will drive these behaviors?
Properly configured compensation systems can have a tremendous impact on your company's success. A sound compensation system will attract the desired type of employee. It is also a motivator, a retention strategy and a powerful statement of company culture, as well as an investment – not a cost!
And, it should be tied to performance!
A pay compensation system that delivers an ROI and creates a high-performance workplace culture where employees think and act like business partners is a huge asset to you as a business owner. Your team will be motivated, and the traditional employee relationship can be transformed into a business partnership where everyone is focused on cash flow, profit and customer satisfaction. And that's great news for your bottom line.
A compensation system aligned with your company goals will have the following effects:
· Focus. Aligns day-to-day operations with company strategy and business plan.
· Commitment. Enables individuals and teams to develop action plans that improve results.
· Accountability. Measurement, performance feedback and action plans establish an environment of corrective action and self-imposed accountability.
· Empowerment. Empowerment becomes a reality. Employees are expected to make decisions, take action and assume responsibility for outcomes.
· Quality Decision Making. Employees at all levels understand what the organization must do to be successful, and their role in achieving the objectives.
· Efficient Resource Utilization. Forces the organization to evaluate all activities, including new opportunities/initiatives, in terms of how they align with overall strategies.
Developing an effective package to attract, motivate and retain your quality employees is a challenging task. So, to get the performance and profit you want, consider the three questions asked above as you review your existing compensation system, or entertain the idea of a new compensation system. You may realize that you have created a negative undertow inside of your organization.
Take the first step – evaluate your current plan against your desired business goals in order to develop a framework for next steps.
Swim Clear of the Compensation Undertow - To learn more about this author, visit Mike LeMaster's Website.
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