In This Episode
How do you think differently and more creatively about how you compensate your people? There’s never been a better time to try something new than the current situation with COVID-19. One of the biggest problems we see if business owners letting other people decide what they pay their people! Don’t believe us? Ask any business owner you know how they pay their people. Chances are you’ll hear some version of that’s what the market rate is for a person like this. That “market rate” is usually based on what their competitors are paying people or some salary surveys they’ve referenced from some HR company.
So why should you let other people decide what you pay your people? On today’s show we rambled around a bit on this topic to try to get your mind thinking differently when it comes to compensation for your people. We chatted about things like having a philosophy for how you want to pay your people. This philosophy can be anything from wanting to be the highest paying place around to a place where everyone gets paid the same. What about plugging the costs into your overall Profit Plan for the year and see how it impacts your profits? Anything other than letting an outsider determine your pay scale.
Be sure to include other things in the “pay” such as benefits like healthcare and retirement plans. How about things like training and reimbursing for education? Don’t forget bonuses! Is it OK to negotiate? What is “too much” to pay someone? How do you know what value that person brings?
There are lots of questions and we covered many of them in this show, but as Jack said at the end, we will have other parts of this show so stay tuned. But hopefully today’s show gets your juices flowing!