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It seems very simple, don't you think? "Do unto others as you would have them do unto you." The Golden Rule feels so global that it should be a cure-all for all relationships. Simply act toward everybody the way you would appreciate being handled and everything will run perfectly, yes? But wait... Something is wrong... Does your twenty-something top gun salesman hope for the exact same goals from their work that your forty-something accounting clerk does? Is your technical staff aiming for the same goals and rewards as your receptionist? Apparently, their needs are very distinct, though many managers apply a one-size fits all approach when appreciating their most important staff. Once a large project is finished, everyone is awarded the same thing, whether it's breakfast or a gift card. Providing an identical reward to everyone is what's fair, right? But is it truly fair for your team's key staff? Keep the Top Players Surprisingly few entrepreneurs realize that the 80/20 rule applied to their staff teaches that 2 out of 10 of their staff produce most of your entire company's success. In addition, almost every management book refers to case studies which compare the productivity of the key people to the not so competent (yet still useful) people. The distinction between the extremes has been found to be as much as 100 to 1. The nearest these numbers ever seem to get to one another is at best 4:1. So now how much more does this extreme difference in value wind up costing? Assuming that your annual cost for the least competent person is $30,000, how much does it cost for your key staff? Since a lot of the costs for an employee don't change, those costs don't increase in relation to base pay. For the intent of this exmaple, let's use some worst-case , $60k. Assuming that your $30k employee generates $30k of value (otherwise you'd let them go, right?). If your key employee is a measly four times more productive than the worst, they deliver far more value for how much more they cost. If you pays for more classes for the least valuable members, costs immediately increase, but without any guarantee that productivity will similarly increase. Consider, also, what part of your time 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: - The self-managing dynamo who, with speed of a bullet train, handles customer complaints, delivers defect-free results, and even cleans up after himself in the breakroom
- The trainee who has some interpersonal issues, occasional product defects, some trouble listening to reason, and shows up late on Mondays due to his occasional hangover
Indeed your key performers are worth their salt. As such, it's incredibly important for every small business owner to keep their top performers, as this handful of hotshots embodies the bulk of your team's value. Their experience with your unique processes together with their talents and ability to get the job done in a pinch makes them practically invaluable. So, what's the most effective way to show appreciation for your key people? What should you do to prove to those top performers that they're appreciated, and boost the likelihood that they'll stick around? What's the most effective way to reward your superstars? Pay them cold, hard cash. If your $30k employee puts in 100-hour weeks during the home stretch of a key project, most pure monetary rewards would come in at a rate way under minimum wage. Simply reconsider this alternative. This can be quite offensive, seen, instead, as an insignificant effort to pay them off and ease a boss' guilty conscience. Regardless, after the IRS gets his share, the net value of this money may be far less than it costs to give it out. Pay for a training trip. Some people might be thrilled to get a chance to take a course in a place on the company dime. They may even like to spend the weekend before or after, out of their own pocket, just to cash in on this chance to rest up. Be careful though, this could appear to your top performer that you thought their efforts less than desirable. They might believe that they need further classes to be deserving of the eventual reward that they hope to get. If your achiever is thin-skinned, they might be worried that their extra work they exerted was an indicator to you that they were having a hard time. Proposing a training reward in this situation could be interpreted that their struggle was apparent, and you've decided to take corrective action. Offer a promotion. Though the appeal of a notable title or material gains accompanying a promotion may motivate some, more and more workers have come to recognize the hazards of the Peter Principle. They're afraid that their work lives will change drastically should they are promoted to manager. Your superstar staff probably like what they're doing right now. That's why they're so darned skilled at it. Before considering a promotional reward, be sure that the new job actually leverages the skills and capabilities of these talented folks, or you may end up losing them. If you go for it, ensure your top performer knows that they can get their old job again if it doesn't work out with the new role. Offer additional vacation time. Everybody likes time off, right? However, if you offer this bonus to a very committed worker who is so wholly dedicated to their occupation that they don't have many friends of work, they may not know how to conduct themselves during this time off. Do unto others as they would have done unto them. You can see that there are quite a few mechanisms to reward your most valuable. It's easy to be tempted to offer each of your staff the same thing. It's especially dangerous to offer them something you'd like yourself. All of this leads to an all-important process: communication. Simply put, ask your key people what they really would like. What could you give them that will let them to truly feel loved? The life that causes a person to turn into an excellent account manager is very distinct than the life of a great administrative assistant. You may be shocked by the answers you hear. If truth be told, your staff may be delighted, as well, to find out that you are truly giving them a say to determine the award for their hard work. - Do they want more money?
- Do they want more challenging assignments?
- Do they want some time away from work to appreciate their children?
- Would they like more mentoring?
- Do they simply want to be recognized at a company function?
- What rewards have they received previously that really made them feel appreciated?
The answers can vary significantly for each person, depending upon their long-term goals, how their needs at this time are being fulfilled within Maslow's Needs Hierarchy, and the current difficulties in their life. Don't make the blunder of assuming that the answer you receive today will hold true throughout your high performer's career. At the end of the day, as opposed to attempting to reward your people the way you would like to be rewarded, break The Golden Rule, and invest the time actually learning their needs and wants. By involving them in decisions that affect their lives so immediately, you might unintentionally cash in on the Hawthorne Effect, and motivate your staff by proving you care. You will likely learn that you've developed a work environment that makes your high achievers more contented than they've ever been. As a result, they will uncover methods to push themselves to new levels of productivity, understanding that their efforts will result in rewards that are truly meaningful to them. You may even earn their admiration and allegiance for a lifetime. Daiv Russell is a small business management consultant with Envision Engineering.
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