How Sharing the Wealth Can Double Your Profits
You've got to give to get. It's as simple as that. The more you
give, well, you know how it works. Your business, and employees,
are much like a plant. The more resources and attention you give
them (water and sunlight) the more they give you (a beautiful display).
The same is true for your people. The more you give them (rewards,
praise, feedback, attention, incentives, growth opportunities, etc.) the
more they give you (dedication, hard work, positive attitude, creativity,
desire, etc.)
Incentives
One of the most effective methods of motivation is an incentive based
bonus program. You set a certain number of criterion that must be met
and the employee gets a percentage of his/her bonus based on the amount
of success reaching those designated levels.
If the people that work for you get a bonus from their hard work, they
will begin to work with you and not simply for you. This doesn't mean
that you share equal ground with your employees, it simply means that
they will start to share your focus and understand why the traits you
desire in an employee are so important.
Stick with It
In order for a program of this type to work effectively, you must
be an active participant in its inception and throughout its life span.
You cannot toy with it, abandon it, bring it back for while, and then
let it slide. Before your people will believe in any program you begin,
you must believe in it yourself.
At first there will be problems and flaws in your system, as there should
be. Don't give up. As time goes on your program will improve, as long as
you make improvements, and you will see results. They may not come overnight,
but little does that makes an impact.
Measureable Stats
Another important issue with your incentive based bonus program is
what you wish to achieve. The easiest and more effective method of
applying this program is to reward numbers. What I mean by this is,
set the goals as something that can be measured. It could be
sales, gross or net profit, number of defectives, etc. If you give
bonuses on how much you like someone, the system will fail. There
needs to be an unbiased account of what is happening.
Make a list of the things that are measurable in an unbiased manner. Choose
from your list the top things that you would like to see improved or
created. Design a bonus program around those selected goals, and
communicate the program to your employees with clarity, understanding,
and commitment. You will see results. |
