High Staff Productivity
Author: admin Category: mad men
One of the reasons business owners may start a business is to make money.
Because of this, I have found that business owners tend to think that money is the major motivator for employees too.
This may be true for some employees, yet it’s certainly not true for all employees.
I have found that most employees first and foremost want a place that appreciates them.
A place where they feel acknowledged and that they are making a contribution.
Money is about fourth on their list of priorities.
Yet if you fail on the first 3, that is, the employee doesn’t feel appreciated, doesn’t feel acknowledged and doesn’t feel like they are contributing… the money thing will rise ’seemingly’ to the top.
And they’ll tell you that they NEED a pay rise to stay.
For a large part the reality is that what they are really saying is “to put up with all the garbage here at work I need to get paid more”.
I have a lot of business owners that come to me and specifically ask me for ‘incentives’ that will help their staff become productive. Yet these business owners have a business that financially isn’t in a position to pay these ‘incentives’.
They think that ‘cash incentives’ will fire up their team, and get them productive. And in turn it will save the business.
Most of the time this idea is off the mark.
If you need incentives to fire your staff up, you need to go back and fix the crux of the problem.
The reality is this…
I have seen many, many businesses where people come in and work their buts off for little or no money. and love it.
In fact when a well known Motivational Speaker comes to town hundreds of people volunteer to work for free - like mad men for weeks and even months and do you know what they love it.
You also see this with the volunteers that work at the Olympics.
They do it because they feel like they are a part of something ’special’. And to employees that means a lot.
For us as business owners we have to be able to ‘think’ like employees.
Not everyone thinks like us. Not everyone thinks like a business owner.
Not everyone wants to start their business. Not everyone wants to earn a million dollars.
You know what, there are people out there that are quite happy to earn a wage and yet still give a million percent.
Not everyone is money driven.
And not everyone will put up with working a million hours to grow your business (like you do).
I’m a big on being fair with people. But like any relationship there’s two sides. And both sides must contribute and perform for the relationship to work.
Firstly you’ve got to employ ‘hard workers’ not people that are inclined to ‘bludge’.
People are either hard workers, or they are not.
It’s a skill that I teach my clients to pick in people when they hire. It’s simple to do.
I’m a BIG believer in getting hard working passionate people into your business and then rewarding them.
Appreciate them, acknowledge them and make sure they are doing things in your business that allow them to feel like they are contributing in a positive way.
I disagree with getting people into your business that tend to ‘bludge’ and paying them to work harder.
And even worse, I don’t agree with offering incentives to already unproductive people.
It’s the wrong way around and you’ll find that they’ll start running your business… you’ll be looking for ways to make them work which will take time from you growing the business or enjoying your lifestyle.
Now let’s talk about money driven employees…
If you have a staff member whose major motivation is money they’ll probably be gone as soon as someone comes along with a better offer.
The answer is this…
Create a business and build an environment that people love to work in. A business that attracts hard working passionate employees.
It’s what I will teach you if you choose to join me on my 1-on-1 business coaching program.
All great business owners create a business that their employees can buy into with their heart…
When your employees are involved in your business from their heart, they take pride in what they do, who they are and pride in the business. They want to work, they want to produce and they want the owner and the business to achieve.
And you can do the same.
Because if your employees love what you stand for, If they love where you are going… and love the way they are treated… you won’t have to ‘look-over their shoulder’ you won’t have to keep your eye on them…
Because they’ll be doing what they love.
And if they love what they are doing they’ll do it to the best of their ability.
You’ll have to send them home, you’ll have to tell them to take holidays.
They’ll drum up business for you when they’re walking down the street or out on the week end… because they are passionate about your business.
And when it comes down to paying them, you can choose what you want to pay them because you’ll be delighted with how they work, and their productivity.
So how to you pay these people?
There’s a number of smart ways that I take my clients through… which I can take you through on my 1-on-1 business coaching program…
In essence you reward them for their work, not pay them to work.
Let me explain.
After years of working with extraordinary business owners I have found this…
They normally start off their business with little or no money… They employ people on industry standard pays… then as the people produce and deliver their pay packets increase.
By the time the business owner becomes very, very successful almost everyone in the business is on a great pay packet. Because everyone is productive.
If they aren’t productive, they aren’t employed.
So take these millionaire lessons on board with you.
Don’t bribe your people with money.
Create a business where passionate hard working employees want to work.
And they will work hard; they’ll be productive because it’s their nature.
They’ll stay and continue to work for a business that they love to work for.
As a result your business will grow… and as your business grows you have the resources to reward them.
That’s the secret to having high staff productivity.
Copyright © 2006 by Casey Gollan. All Rights Reserved
October 9th, 2008
What is the socialist position on democratized capital?
Experience has shown that companies in which workers are shareholders enjoy higher productivity, as people are willing to work harder if they have a direct vested interest in the success of a business.
If Labour Union membership were universal, and workers were guaranteed holdings in their companies, such that if the executives (or even the board) were to make decisions directly counter to the interests of the workers, those workers could negotiate to remove those executives in favour of other entrepreneurs who were prepared to commit to making the company viable while maintaining its staff. This could take the form of buyouts or whatever.
This democratization of capital, I think, would make the sort of nationalization of capital characteristic of socialism unneccesary in order to pursue social justice and equitability. At the same time, the essential entreprenurial spirit of capitalism could still drive technical advancement and the associated high quality of life.
Oh, and Happy May Day!
I'm not a socialist (or a communist), for that matter. As I outlined above, I am all for private property and capital.
I identify myself as an Anarcho-syndicalist. People on these boards have referred to me as a libertarian before, but I always got the impression that libertarians are all a little too caught up with social darwinism (which as a Roman Catholic offends my moral sensibilities).
I believe that people have a right to act collectively with others who share their interests. The big problem I have with US Capitalism is exactly what NOTHINGCONSTANT mentions: while corporate interests profit from collectivisation of capital, somehow that freedom is denied to working people who wish to do the same thing (their only capital asset being their labour) via a Labour Union.
If all men are created equal and endowed by their creator with unalienable rights to life, LIBERTY and THE PURSUIT OF HAPPINESS then how is it that companies like Wal-Mart get away with this BS?
How would it get to this point:
Shareholders have the ability to negotiate hirings and firings of executive management already. All yo uowuld have to do is negotiate it so that the workers of the company control 51% of the available shares in the company. How would you do that? Unions, that's how.
Legally prohibiting companies from interferring with workers' attempts to organize themselves would eventually lead to widespread (if not universal) union membership for every person with a job. I believe this because when the benefits of collective action are clearly outlined, they are irrefutable.
Regarding corruption, I don't think you can have any organization of three or more people where there isn't going to be some double-dealing and shennanigans (this is where the "Anarcho" comes in). Hell, I live with corruption in my government and in my country's industry…at least my way allows EVERYONE in on the corruption…not just the wealthy and politically connected. (j/k)
October 9th, 2008
Oh Boy… the lid is off, the supply side economic hawks will be here to rip your throat out for sure.. but I'm with you my friend. Give people a chance to create something better and they will every time!
PS…Sorry I know you distanced yourself from the "S" word, .. but that is a very Social concept and is utilized with great success in Companies like BASF and other Euro manufacturers…
Update,.. I just read your response to the responses.. I think that Just Good Folk said it best. (as he often does) social democracy works because it encompasses the incentive and forward motion of capital but seeks to offset the Darwinian Savagery of the current corporate model… we're all saying the same thing and I agree about the sudden rash of "Libertarianism" I think it's where Republicans with a conscience have decided they'd rather be… again "Good Post"!
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October 9th, 2008
Hmm..
I guess I would have to ask…
Wal-Mart employees are able to buy stock and have it matched. Sam Walton used to actually give away stock for good work..but this has been done away with for quite sometime.
A Wal-Mart employee doesn't look like they are worried about the health of the company. If anything they want it destroyed. They also are encouraged to report any unionization and to use the "Open Door Policy". They even go so far as to show a 30 minute video on Unions and how to "deal" with people who approach you.
What would you do in that instance? Where people who hold stock in Wal-Mart still want it to fail? And attempted unionization is met with firing? Also, some employees are not business savvy. Would they still be entitled to make company decisions? I think it would end up being full of mudslingling like the current election.
I do like the idea by the way.. just wondering what you thought of the above.
~~~I was just wondering how it could evolve into what you are saying. How could it happen? Through strength in unity.. but we are divided more and more by each decade. Our education is stunted and our critical thinking skills are out the window. How do you instill a need for something like that when capitalism has been shoved down our throats?
Most importantly.. how do you keep the unions from being corrupt? I have just resigned to the fact that corruption is a mainstay in everything and I don't see how it could be resolved in this way. Temporarily maybe… but workers will get individualized once again and start questioning the motives and capability of their fellow workers.
I know you are not a Marxist.. but I prefer Veblen. He mainly thought that Marx was right up to an extent, but the gap between technical skills and menial labors would grow so much that the proletariat would be mentally incapable of running things like Marx suggested.
He also said that people will never ever give up Capitalism when they are getting something out of it. That something maybe miniscule and they are getting screwed the whole time.. but as long as they are benefitting in their minds.. it won't change.
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Wal Mart college job… *shiver*
October 9th, 2008
I believe that you are basically correct. Giving workers claim over the residual (profit) associated with their effort solves some important incentive problems. In a sense this is what all year end bonuses do, except they are sometimes tied to individual performance rather than collective performance.
The downside is that it gives them more risk - the more of a worker's compensation that is tied to something variable (company profit) compared to a fixed wage, the more exposed they are to risk. Workers and poorer people are frequently more risk averse. If you tie their incentives/profit directly to their own actions (say their own division or account within a company) they get maximum incentives but also maximum risk. Spreading it out over the whole company diminishes risk (because some parts of the company may do better than others) while at the same time decreasing incentives because people free ride.
In some ways what you are talking about is exactly what some socialists have in mind - worker control of factories. The only difference is you are still positing a middle-man - management - that performs a specialized task, while the vision of socialists either in the Argentine factory occupation movement or in Poland following the collapse of communism was direct worker ownership - get rid of management.
Given that management does perform some useful roles in my opinion, I think your solution seems quite reasonable, given the caveats I mentioned about risk.
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October 9th, 2008
That's social Democracy in action. Hardcore socialists will reject that concept because they always start from an ideological analysis and this doesn't fit in. They aren't pragmatic enough to be successful in the real world. Marx is dead and wrote what he did over a hundred years ago. Capitalists changed their tactics and adapted, so should we
Democratic socialists nowadays support a free market but try to correct the brutal oppressive sides and seek cooperation between classes every chance they get. They are more pragmatic and I think most like myself would love your idea on this subject.
However I'm sure parts of the far right will call what you propose not just socialism but even communism. Happy May Day to you too
References :
http://www.socialistinternational.org/viewArticle.cfm?ArticleID=31
October 9th, 2008
same goes for almost every opportunity that is offered in this country… it works if you work it, and the majority are too uneducated and/or lazy to care.
Not everyone is born with the entrepreneur attitude, therefore would be easily "buffaloed" into agreement of a more direct person… thus making the whole concept skewed and off center from the get go.
but it would be nice… the persons willing to better them-self and there position in life would have truly limitless opportunity's.
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October 9th, 2008
I don't think there's one "socialist" position, since there have been so many "socialisms" since the 19th century.
I would rather not take your suggestion too rigidly, but would like it in general. IIRC, US law forbids unions to own stock in the same companies they represent workers in, making this much harder to achieve.
You might want to read some of the work of Kevin Carson, at http://www.mutualist.org
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