Have you ever asked yourself how you can increase profitability and production in one fail business coaching swoop? I have an answer for you. If you are like a lot of my clients then you are not going to like it, but, if you implement this into your business then you will take your business to the next level. Honestly, not only will your profitability and production increase, but you will quickly begin to see the obvious separation between the quality level of your employees. If implemented you will be able to identify and develop the A and B players and be able to replace the C, D or F players. I have a client that I am currently helping walk through this process, and I know it can be scary, but it is so worth it. Have you guessed it yet? That’s right, I am talking about Incentive-Based Pay. (Explosion, Fireworks, Flashing lights)
When someone is guaranteed an amount of money in exchange for time versus performance, then the bar naturally begins to slip over time.
Now, please don’t stop reading. Hear me out. In our American culture these days, how do people typically get paid? They receive an hourly rate or an annual salary that is tied very little to their actual performance. I have worked with numerous companies, and they all, without fail, say the same thing to me. They want to know how to find great people. Some don’t even care about great people, they just want people who will actually show up to work. Incentive-based pay is one of the keys needed. When someone is guaranteed an amount of money in exchange for time versus performance, then the bar naturally begins to slip over time. There are very few people in this world who are self-motivated enough to do their very best job all the time when there is no obvious incentive to put forth this effort.
With incentive-based pay, you give the people who are willing to work hard, the opportunity to get paid as much as they want, as long as they are willing to put in the effort.
However, with incentive-based pay, you give the people who are willing to work hard, the opportunity to get paid as much as they want, as long as they are willing to put in the effort. As an example, when I started working with Clay Clark, one of my first responsibilities was to write search engine content for clients to help them get to the top of Google. One of the most important keys to writing business coach content is quantity. You want a lot of business coach content. Because of this, they would pay us based on the amount of content that we wrote. Each page of content is called an article. They would pay us $2.25 per article of content. This meant that the more articles I wrote, the more I got paid. When I first started, I was writing about 8 articles per hour. By the time I was in my prime, I was pumping out 20 articles per hour. Having the opportunity to earn more money based on my performance motivated me to work harder and perform at that high level consistently.
When you take the revenue-producing activities of your business and you attach an incentive to that action, you motivate the people who want to work hard and earn more. Simultaneously, you clearly begin to see the people who don’t want to work hard and who have been hiding under the radar. Also, you save money, because if an employee doesn’t do the work then they don’t get paid. Payroll suddenly only reflects the production of your company. You actually want your payroll to be high because that means that you did a lot of revenue-producing activities and you will make more money. Now, I understand that for some of you out there, this will likely be a hard left turn for your organization. Let me tell you the future, you will have employees complain. You will have people quit. You will likely have to fire people. But, once the dust settles and you have this built into the functioning of your organization this pay system, you will find that you will have a more productive, profitable, healthy environment where the people who will actually help your business go to the next level are on your team. Get this implemented immediately.