Why Do You Compensate Employees?

Why do you pay your employees? Is it because they work hard? Is it because they have a special skill? Or do you pay them because of the knowledge they possess? If you are paying them for any of those reasons, then you are paying them for the WRONG reasons.

You are probably wondering why you shouldn't be paying employees for those reasons. Well, just think about it for a minute. There are probably thousands of football players who can work as hard as Tom Brady. But ........ can they produce the same RESULTS as Tom Brady during an NFL game? There are probably thousands of golfers who know as much about the game of golf as Tiger Woods. But can they produce the same RESULTS as Tiger at the U.S. Open? And of course we know many athletes who had great skills but got traded from team to team because they were troublemakers or were underachievers. Or some individuals are like John Daly who has great golf talent but just doesn't seem to use that talent because of his personal problems. Despite their skills, they never produced the RESULTS needed for success.

So why do you pay your employees? You pay them to achieve the desired RESULTS needed to make your business successful.

Many business people are obsessed with work, that is, the number of hours their employees spend on the job. Let me ask some questions. If you had to have a major heart operation, do you want the surgeon who has spent the most amount of hours in the operating room, or do you want the surgeon that has had the most successful operations? Is it the work that is important or the results? Do you want to hire the salesperson who has the record for working the most hours per year making sales calls, or the salesperson who holds the record for making the most sales?

I am sure I can practice as many hours as Tom Brady or Tiger Woods. But no one will pay me to be quarterback of their team or bet on me to win the Masters. You can find hundreds of statistics in every sport, but you can't find one that states how hard the athletes work. Don't worry about how hard your employees work. Worry about the results they achieve.

You may say that results are not possible without hard work. My answer is "Maybe." It depends on the individual. Some individuals work very hard to achieve results while others do not. The point isn't whether they work hard to achieve the results or not. The point is ...... did they achieve the desired results?

A good manager develops an environment which enables his or her employees to achieve results. A good manager focuses on results by rewarding employees for achieving the desired results and not rewarding people just because they show up for work every day. Good managers develop performance review systems that measure results. Good managers develop compensation systems that reward results. Do you really care how hard the surgeon works on your operation or do you simply care about the results?

Those are my thoughts. I welcome yours.

Keeping in Your Name in Front of Your Customers

Out of Sight .... Out of Mind. Have you ever heard someone say, "Oh yes, I forgot all about old Bill?" Or what about, "Oh yes, I seem to remember that company. I did business with them years ago." Out of Sight .... Out of Mind.

It always amazes me how someone will do business with me and then never contact me again. They seem to think that just because we did business once, I will always think of them when I need the product or service they sell. Actually it is quite the contrary. When I do not continue to hear from someone, I simply feel that they neither want nor deserve my business.

A good business person/sales person constantly keeps her name in front of her customers and potential customers. You want to be the first person who comes to mind when your customer needs the product or service that you sell. It's not magic, it's not rocket science, and it's not difficult. It does take work and diligence.

When I moved to Minneapolis in 1979, I asked my real estate agent to recommend an attorney. I used that attorney to assist with the legal matters of purchasing my home. I was satisfied with his service but I never heard from him again after the closing. Three years later, I purchased my first business. Needles to say, I used a different attorney. That second attorney continued to do legal work for me (and receive substantial fees from me) for the next 14 years until I moved from Minnesota. Just think what the first attorney lost by never keeping in contact with me.

In his book, "How to Sell Anything to Anybody," Joe Girard talks about how he stayed in contact with his customers. Each month they received a card from him. It might have been a card wishing them a happy holiday or simply a card to say "Hi." No matter what the content of the card, he made sure his customers saw his name at least once per month.

Jeff Slutsky states in his book, "How To Get Clients" that he sends his clients note pads containing his name and picture so they will constantly have his name and picture on his desk.

Many businesses use newsletters to keep their name in from of their customers. I have always believed that an informative newsletter is a great way to both provide useful information to your customers as well as keep your name in front of them.

No matter what method you use, just remember ..... Out of Sight ... Out of Mind.

I would like to hear about any methods you use. Your comments are always welcomed.