I’ve been accused over the years of being cynical because of some of the comments that I make. However, I really believe that I’m a realist and my comments only reflect what is actually happening. If you are an active follower of my blog you have been exposed to many examples of my realistic views. In one recent posting I suggested that readers who question a company or persons motivation for a particular action should follow the money trail. While this does appear to be a cynical comment suggesting that most actions are money motivated, it is more realist as I accept the fact that money is a great motivator and will stir companies and people into action. Certainly not all actions are money motivated as religion has been an equally great motivator throughout history. There are plenty of other motivators for companies and people but if you look beyond the platform being used to motivate and drill deeply sooner or later it will come down to money. Am I a Cynic or realist?
In business, we are all motivated by money. Certainly business owners come to work each day because they enjoy what they are doing; and, there are those owners who enjoy what they are doing so much that they claim that they’d work for free. But at the end of the day whether an owner in a start-up business struggling to pay the bills or an owner whose business is listed on the INC 500 we are all looking for profitability. One way to reach profitability is to leverage manpower by hiring people to help produce products or provide services. Business owners have great opportunities as not all people want to devote the time necessary to own a business and would prefer to work for someone else. In looking for employment, people certainly look for jobs in their chosen field but then narrow down the offers for employment based upon such things as proximity to home, work schedule, pay and benefits. Whether owner or employee, money plays a major role in motivating our actions.
Unfortunately, not all businesses can afford to provide convenient locations, flexible work schedules, high pay or abundant benefits. There are businesses that by the very nature of the product or service they provide struggle to compete for employees. If this describes your business you are probably all too aware that money motivates people. Your business doesn’t generate the type of returns that allow you to provide pay and benefits to attract the brightest and best employees. But, you still can compete. You just need to think outside the box. My suggestion to business owners in the aforementioned situation is to create a pay schedule based upon performance. A base level of pay that your firm can afford and incentives based upon a portion of increased profits or some other measurable standard. This is where the idea of profit sharing came from.
If you aren’t able to come up with an incentive system on your own it is advisable that you look for assistance in putting together a program. Networking with other business leaders is an inexpensive and effective way to learn about incentive based rewards but if that isn’t an attractive alternative to you there are a large number of individuals and firms that provide consulting services specializing in employment issues.
Edward Boyle
CEO, Employing Broker
Katchen Company
Katchen Company, founded in 1962, is an integrated real estate company with its corporate headquarters in Lakewood, Colorado. The company offers real estate development, redevelopment, property management, brokerage, consulting services, construction oversight and maintenance services to individual and institutional real estate investors throughout the greater Denver metropolitan area with satellite offices in Chicago, Las Vegas and Miami market areas.
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