At two of our companies, we enjoy high-performance teams by aligning team members with the business goals they influence. In short, we make sure they are compensated for every measurable goal they help us achieve.
When incentives are not tied to individual team members' efforts, there is less passion for making them happen.
High-performance teams are incentivized to advance a company's profit for its purpose, bless the community, and advance Christ's kingdom. Not only are they bringing impact to the community, but they are also themselves being positively rewarded and impacted.
Rewarding team members for any measurable improvement in the business drives advancement.
Rewarding team members for any measurable improvement in accuracy drives greater accuracy.
Rewarding team members for any measurable improvement in productivity drives greater productivity.
Whatever the company is trying to accomplish that can be measured, can be part of incentive compensation.
At one point, our drivers are plagued with D.O.T. citations, too many hours on the road, late deliveries, and their attitudes are not always the best.
Everything changes after aligning our compensation with our company objectives, switching them from hourly pay. Deliveries are complete, accurate, and on time! Our customers are thrilled. Our drivers are achieving more and working less! And, their pay increased by more than 50%!
Incentivizing accuracy with our loaders at the loading dock also takes us from 98% to 99.9% and doubles the amount of loading. Compared to the previous hourly rate, their pay increases by over 50%.
Incentivizing our sales reps, paying them for the profitability of their sales, getting a percentage of the margin dollars, the size of the order, and quickly receiving their customer's payment sends sales through the roof, generating more profits for the company.
Tying our company goals to our team members' compensation causes some underperformers to leave. It also encourages our best performers to stick with us over the long haul.
All these things are influenceable by the employees and contribute to our ability to bless the community and sustain our purpose.
To help you lead a high-performance team, I have created a resource: Business Impact Plan, Seed, Sunshine, Soil, Harvest. It has a whole section with great questions that you can use to challenge your team for maximum contribution. It is a free gift. CLICK HERE TO DOWNLOAD.
Let me know how your team is doing.
Harry T. Jones
P.S. Don't forget to get my free resource, Business Impact Plan, Seed, Sunshine, Soil, Harvest.
Comentários