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Posted on October 8, 2007 by Daiv Russell | Posted under Management
Retain & Motivate Star Employees - Think Outside the Box
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But wait... There something off... Does your company's twenty-five year old big shot sales guy want the exact same benefits out of their work that your forty year old billing clerk wants? Is your technical staff aiming for the same goals and reimbursement as your secretary? Indeed, their needs are very unique, though quite a few managers apply a one-size fits all method when commending their highly valued employees. After a big job is done, everyone gets an identical reward, whether you buy them breakfast or a gift card. Providing the same thing to everyone is what's right, isn't it? But do you think it's truly fair to the most valuable employees? Keep the Most Valuable Performers Surprisingly few entrepreneurs understand that the Pareto theory lesson about their team means that 20% of their team are delivering the bulk of your entire team's success. In addition, just about every management book recounts studies which compare the productivity of the most valuable people to the not so skilled (yet still effective) people. The spread between the best and worst have been reported as high as one hundred to 1. The nearest these statistics ever seem to get to one another is about 4:1. So now how much more does this extreme sway in value end up costing? Assuming that your annual cost for the least skilled employee is $30,000, what are you paying your most valuable staff? Since a lot of the costs for staff don't change, they don't increase in relation to base pay. For the purposes of this example, let's use some worst-case figures, $60k. Assuming that your $30k employee generates $30k of value (otherwise they'd be gone, right?). If your most valuable employee is a measly four times more productive than the worst, they deliver far more value for how much more they cost. If your company invests in more classes for the low-end members, costs immediately increase, but without any guarantee that productivity will similarly increase. Also consider what part of your pay is factored into the "cost" of this moderately competent employee? Probably none. Management costs are usually invisible, factored away as overhead. It certainly feels like you're being productive - trying your hardest to bring along the strugglers, hoping that they eventually rise above their shortcomings. Consider how much of your time is spent with either of these employees:
Indeed your most valuable performers are worth the effort. As such, it's incredibly important for every small business owner to retain their best, as this group of your greatest represents the bulk of your team's value. Their familiarity with your unique processes together with their skills and ability to get the job done in a pinch makes them nigh unto priceless. But, what's the most effective way to reward your most valuable people? What should you do to prove to those top performers that they're wanted, and boost the likelihood that they'll stay with you? What's the most effective plan to keep your superstars? Coat their palms with silver. If your $30k worker devotes himself to 70-hour weeks during the final push of a key effort, most pure monetary rewards would come in at a rate far below minimum wage. Simply reconsider this choice. This can be extremely insulting, seen, instead, as an insignificant effort to buy them off and ease your guilty conscience. If you do decide to follow this path, once the taxman gets his piece of the action, the net impact of this cash might be far less than it costs to pay it out. Send them to extra training. Some people might be thrilled to get a chance to attending a training event in a new city with the company picking up the check. They may even like to spend a few days before or after, at their expense, just to cash in on this chance to get away for a bit. Watch out though, this could be mistaken by your top performer that you thought their performance lacking. They might believe that they need further classes to be worthy of the ultimate reward that lies waiting. If your staffer is thin-skinned, they could get worried that their effort they went through was a red flag to you that they were not so doing well at their job. Offering an instructive reward in this situation could be interpreted that their struggle was apparent, and now you are taking remedial steps. Promote them. Though the allure of a striking designation or material gains accompanying a promotion may motivate some, more and more workers have come to understand the risks of the Peter Principle. They're concerned that their work lives will change a great deal if they become manager. Your turbocharged talent probably enjoy what they're doing right now. That's why they're so darned skilled at it. Before trying out a promotional reward, make sure that the new position actually uses the skills and talents present in these high achievers, or you may end up having to replace them. If you risk it, make sure your key staffer understands that they can get their old job again if it doesn't work out with the new role. Provide more paid time away from work. Everyone wants time away from the office, right? However, if you offer this reward to a very committed worker who is so totally immersed in their job that they have little else in their lives of the workplace, they may not know how to handle this leisure time. Do unto others as they would have done unto them. You can see that there are innumerable ways to reward your most valuable. It's easy to be tempted to offer each of your employees the same thing. It's especially tempting to offer them what you would want. These examinations reinforce a very simple process: communication. To summarize, ask your shining stars what they really want. What is it that will let them to actually understand that they are loved? The experiences that leads someone to become a great account rep is very distinct than the life of a great administrative assistant. You may be amazed by the replies you hear. If truth be told, your employees may be surprised, as well, to discover that you are giving them a voice to decide upon the award for their efforts.
The results can differ considerably for each individual, depending upon their long-term ambitions, how their desires at this time are being fulfilled in Maslow's Hierarchy of Needs, and the current difficulties in their life. Don't make the mistake of presupposing that the answer you receive today will remain the same throughout your key performer's career. Ultimately, rather than attempting to reward your staff the way you would prefer to be rewarded, break The Golden Rule, and spend the time actually understanding their needs and wants. By involving them in choices that affect their lives so immediately, you might unintentionally benefit from the Hawthorne Effect, and motivate your staff by proving you care. You will probably notice that you've created a workplace that makes your high achievers more contented than they've ever been. Accordingly, they will discover ways to push themselves to new levels of efficiency, understanding that their hard work will turn into rewards that are actually meaningful to them. You may even earn their admiration and allegiance for a lifetime. About The Author: More information about... the Peter Principle - Abraham Maslow's Hierarchy of Needs Daiv Russell is a small business management consultant with Envision Engineering. |
Tags: STAFFING, MORALE, MANAGEMENT, LEADERSHIP
