"Profit over People OR People over Profit?"
- Long standing debate
People Profits Principle #46
When People and Profits work together - magic happens!
People Profits rejects this is an "either - or" discussion:
- Employees want a financially stable company
- They also want a company that is "going somewhere"
- They want to be paid a fair wage for what they do.
- They want to be paid more as their value to the organization increases.
There are companies that obliterate this discussion, they:
- Don't pay small raises based on "time served"
- Do base pay on objective value and performance of the employee
- Do increase pay for increased value and performance
- Do relate incentives directly to employee responsibilities and performance
- Do provide benefits related directly to employee needs/wants
When you align the above with your business strategy and model
the employees will drive profitability.
Case study: A service company was having a hard time getting employees to perform certain highly profitable work. When a compensation plan was developed just for this work, employees lined up to do the work, revenues soared and the profit margin went up by 40%. This also helped retain our employees as no other company could pay them what we were paying them.
When you look at this picture, ask yourself a question.
Is she the owner or an employee?
You are right, you don't know - which is a wonderful thing!!