Nobody questions that most businesses exist to serve the business owners, and to generate profits. Hopefully, they’ll do some great stuff for their customers and communities along the way. But, it’s my loud-mouthed opinion that most companies do a really lousy job of really compensating their key employees, and simultaneously “helping” poor-performers move along little doggies.
So, when Dawn Turner reports that an Executive Assistant Gets $152,000 Bonus for Creative Problem Solving, my ears perk up.
- How could you reward and promote key attitudes and values that would benefit your company culture?
- How can top-achievers receive truly incredible compensation, naturally, through them performing their jobs?
Now, Good to Great teaches that it’s not how you pay, it’s who, and I must agree with that. No compensation plan will get deadbeats to perform like athletes. But, when you combine the right people, and the right business focus with truly innovative compensation models that reward top achievement, you will have a perfect storm of reasons why your company will attract and retain the sharpest and best people for your industry and niche.
The other shoe? The following will kill your attempts and good compensation and make it suck even more:
- Your plan takes so long to realize real payout that people either forget about it, or don’t care.
- Payout is only achieved after so much work that many people feel it’s not worth it.
- The people already getting “all the pay” are the only ones benefiting from the new pay structure.
- Your plan is based too much on subjective, changeable rules based on whim and decision rather than verifiable objective results, data, etc. The instant your employee sniffs that they need to be “in the club” to get the payout, your true superstars (aka diamonds in the rough) will flee like rats on the Titanic.
- Your plan actually creates unintended consequences, like paying stock options out to (hopefully) improve dedication to your company, but instead creates an intense outward-focus on the stock market, and a frenetic push toward short-term gains (the next closing bell) rather than long-term success.
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Bozofication Alive and Well: Utah Companies Will Pay for Stupidity
June 27th, 2007UPDATE: Please leave comments about BOZO things you have experienced at your or other companies! Anonymous submissions OK
According to the Utah Department of Workforce Services, May 2007’s unemployment rate is 2.5%, where the national rate is currently 4.5%. BYU’s Newsnet validates the data with their recent article, More Jobs … Less Money: Utah Unemployment Rate at 2.4%.
But, no.
In fact, as I see the market tighten, companies seem to be getting stupider and stupider with their retention systems. In fact, they may as well be paying their employees to leave, rolling out the red carpet for them, and tossing in a trip for them and the fam to Disney Land while they’re at it.
Here are five things that have consistently surfaced in my interviews over the past few weeks when I ask, “Why are you looking to leave your current job.”
At the end of the day, the trend I am seeing simply stems from BAD MANAGEMENT. I wonder if the tight labor market is actually exposing fissures in the infrastructure of these companies to the point that they are letting any Tom, Jane or Harry run the place?
If you are caught working for any of these companies, I would RUN, not walk to your favorite recruiter or job-board and doggedly search for the next opportunity for yourself… or you may be the last comic standing when the walls come tumblin’ down… and it will surely not be funny.
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Posted in Better Recruiting, Company Culture, Firing, Hire POWER!, Hiring, Know The Ropes, Personal Development, Talent Management, Utah, Utah Living, Working With Recruiters
Tags: Awareness Business Commentary Employee Performance HR Human Resources Life Management Marketplace Money People Rants Recruiting Retention Salary Skills The Changing Job-Market Trends