Richard A Melancon, CPA
Take Your Company to the Top! Here’s how:
** Align your values with the corporate mission,
** Transition from Manager to Leader,
** Implement Best Practices so that you can delegate, monitor only the exceptions, and implement your strategic plan, and
** Use the four pillars of Integrity-based Leadership as a basis for all policies, procedures, and communications. The four pillars are 1) Honesty, 2) Clarity, 3) Transparency, and 4) High Ethical Values
Do the above and your employees will increase their productivity, improve their motivation, and help the company grow to the next level. Along the way, staff who are not part of the team spirit will leave automatically, and you will be left with a great group of employees who believe in your company and will follow you on the growth path.
COMPENSATION – Does It Really Motivate Your Staff?
I believe many people have elevated expectations about the power, impact, and design of compensation programs. David McClelland (psychologist) believed that money is not a motivator. It is a satisfier at best, and often becomes a dis-satifier that leads to turnover.
Think money is a motivator? Then it follows that if you double the pay you get double the work effort. (This may work if you’re paying half the appropriate wages in the first place.) So, here’s my take on the whole salary topic.
Pay the appropriate wage (ask you trade association, check out the local classifieds, ask your competitors for feedback, etc.). Then every year, pay a cost of living adjustment equal to the consumer price index. Period. End of subject. No raise, no seniority compensation, no fuzzy salary adjustments.
If the employee brings a permanent increase in value to the company, give that person a new salary rate (finishing a degree or certification program, attending a two-year skills development program, transfer from field duties to R & D to enhance new products, etc.). If the person is promoted to a job that requires more responsibility, that person deserves a new salary rate. If the employee performs a one-time activity that increases profit, give that person a bonus to encourage such performance to repeat.
Simple? Effective? Workable? You bet.
Richard Melancon, CPA has helped companies nationally to improve their operations, increase staff productivity, and solve financial challenges for over 25 years. He is the author of three books:
You Can Afford the Good Life (A book for those in financial crisis who want to learn to manager their money)
18 Secrets to Increase Profit and Inspire Employees (A book that presents Best Practices for all industries)
Integrity-Based Leadership (A new leadership paradigm that allows the owner to fulfill dreams of a lifetime and instill the vision, vigor, and vitality of the owner in all aspects of the company.