Ducks in a Row: MAP and Compensation
by Miki Saxon
When you’ve coached or written a blog for years you can find yourself answering the same questions over and over, but that’s OK. I’d rather have you drop me a line or use the chat box in the right frame than search for something and become frustrated.
And that’s what happened last night about 10:30.
“Ken” pinged me and asked if I remembered a post that talked about compensation and used a stool as an analogy for the company. He said he’d read it a few years ago and wanted it as part of a presentation for his boss.
No Problem. I’ve used that analogy with clients for years and in posts three times. After I gave Ken the URL he said I should post it again.
I agreed, but added a bit to cover the current situation.
Success is like a 3-legged stool—
Customers / equity-holders / employees
If one leg becomes too long, the stool tips over!
Taking care of the first two is a given, whereas taking care of employees seems to be based on the labor market.
If the market is hot, people are showered with money and perks, as the market cools, so does employee care.
Yes, you can buy people and you can replace people, but it’s very expensive.
In the kind of tough economic times we’re going through people understand when there are no raises and even when their compensation is cut to avoid a layoff.
But if that treatment extends only to workers and lower management, while executive compensation and perks continue, you can count on a steady exodus as business improves.
When the market is tight and companies are throwing cash, stock and perks right and left it’s the wise manager who remembers that people who join for money/stock/perks will leave for more money/stock/perks.
If instead management chooses to
- do the right thing,
- treat people fairly,
- give them interesting work,
- enable their growth, and
- satisfy most of their intangible hot buttons
employees will be
- more productive,
- innovative,
- engaged,
- committed,
- caring,
- happier, and
- healthier.
What more can any boss/company ask?
Image credit: Steve Heath on flickr
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January 5th, 2010 at 7:48 pm
Miki,
Too often the 3rd leg gets the short end of the stick! It requires more of a long term commitment, In addition, it’s hard to measure the impacts.
January 5th, 2010 at 9:31 pm
Hi Nick, I certainly agree that long term is necessary; too bad that so many companies think that is anything longer than a quarter. As to measuring impact turnover/recruitment costs or both employees and customers are pretty well documented these days. I especially like Frederick Reichheld’s work on the value of employee loyalty.
Thanks for stopping by and adding your thoughts.