Dear entrepreneur, do you pay for time or for results?
By nature, most people tend to get comfortable in the environment they already know. After the initial drive when one of your employees joins your company, their motivation tends to plateau, and you can only temporarily boost it by giving them a raise.
However, raising the salary alone is not the answer to improving results and making your company competitive.
Wouldn't you like to know the monetary value that the correct outcome of activities in your company represents? And I'm not just referring to sales activities.
If the results of a process represent a value of $10,000, would you be willing to distribute $2,000 among the employees who contributed to achieving that result?
Wouldn't you prefer to share the profits in exchange for maintaining motivation and consistently achieving the same result?
There's a deeply rooted idea in the minds of entrepreneurs and business owners, but I have to tell you that this idea is wrong!
It is your responsibility to plan where you want to take your company and then place the right pieces that will pave the way to the goal.
Today, I will reveal the right strategy for you to stop paying for time and start paying for results.
Forget about the departmental focus; it's outdated and doesn't produce results. You need to adopt a process-based approach.
- Define the direction you want for your company, including short, medium, and long-term goals.
- Identify each of the processes that make your company work.
- Define the results that each process should provide; these results should contribute to the overall goal: your company's growth!
- Determine how to measure the results of each process and how often.
- Establish the value that each of these results represents for the company.
- Define the necessary activities in each process to consistently achieve the desired outcome and identify the tools that will be used to achieve it.
- Identify the resources you need to allocate to achieve the results.
- Determine the competencies that the people responsible for executing the activities should have and hire accordingly, taking into account the tools they will use and the resources they will manage.
- Offer a financial incentive to your employees if they achieve the results of their processes; the amount should be related to the value of these results.
The process-focused approach is crucial because it allows you to identify the value of results in each process, and therefore, you will know how much to offer your employees to reach them.
Stop paying for time and, instead, invest in stimulating your employees' commitment. Your company will thank you!