Alright folks, this one is longer than 3 mintues… but it’s juicy stuff that I get asked about A LOT so I had to make it longer.
Should you pay by the hour? A package rate? And what’s up with this incentive stuff?
There are 3 different ways you can be paying your team members, so let’s break them down here for you:
By the hour – paying someone an hourly rate for the TIME it takes them to do the work. This is the simplest arrangement as it’s the easiest to calculate, BUT the downside is that you have no control over how long it takes someone to do the work. Some people are fast, some are slow, and you run the risk of getting a “surprise” bill from someone when you don’t have parameters and strong agreements in place. Hourly is best for the “doers” in your business, such as a virtual assistant.
Pay for a package – this is paying someone a flat rate for a specific DELIVERABLE. For example, if you are hiring a web designer to create a new website for you and you have a clear agreement on what specifically they are going to deliver. The beauty of paying for a package is that you know exactly what you are getting, what you will be paying for it and it doesn’t matter how long it takes them to do the work. That being said, this arrangement is NOT ideal when there is not a clear deliverable or specific start/end to a project.
Incentive Based Compensation – this is when someone is paid a simple flat rate base (or retainer) amount with the option to earn more based on the RESULTS that they are helping to create in the business. This is ideal for the people on your team who help contribute to the overall growth and success of your business. A launch manager who is running a launch for you A to Z. An Online Business Manager who is responsible for setting the foundation for growth in your business. A sales person who is bringing new clients into your business.
The key to incentive is that the person has a bit of “skin in the game” – and that they don’t get paid more unless there is growth in the company (results). Again, hourly can be taken out of the equation here by giving the person a base/retainer that is enough to keep them engaged without having to track time and get caught up in the hours. Instead, they know they can truly make more money as the business grows and that the investment of time/energy on their part will pay off. Incentive can take the form of a percentage of revenue (5-10% or more in some cases), percentage of profits or a flat rate bonus based on reaching certain milestones.
“The inbox is nothing but a convenient organizing system for other people’s agendas.”
Was watching this video from Brendan Burchard and my ears perked up when he started talking about how we start our day… and specifically when we decide to jump into our inboxes.
Based on a study he did within his High Performance Academy he found that:
“If you check your email in the first hour of the day, you lose 30% productivity over the course of the week. Why? Because you’re opening your day and your inbox and jumping on other people’s agendas.”
Do you check your email in the first hour of the day? If yes, you aren’t alone…. AND it is having a major impact on the success of your business to the tune of losing 30% of your time, your energy and your income. You are then operating at the mercy of what is in your inbox vs. taking control of your day, your work and ultimately your destiny.
Such a wee thing that can make a HUGE impact, love it.
So I ask you – what else could you do for the first hour each day before checking email? Maybe we need to start a First Hour Challenge and see what we can create – you in?
It reminded me of when I worked as a recruiter for a placement agency in Calgary, AB where a big part of my day was spent was interviewing people who were looking for new jobs.
One of the questions we asked them was:
“Why do you want a new job?”
Now you would think the most common answer would be money right? I always assumed that would be the case… but it wasn’t.
The most common reason was simply that there was no room for advancement and they felt under appreciated.
In other words, people want to have opportunities for growth, they want to feel empowered in their work, they need to feel appreciated and work for great leaders… which is exactly what this article was all about.
Yes, perhaps this article was written with an eye to the big guys – bigger corporations with huge staff and budgets. But the thing is, these exact same strategies work for us smaller companies who run on an outsourced staff (like I do) or maybe have up to 10 employees.
I have a team of people who have worked with me for a long time, in fact there has been only one person who has left my team in the past 5 years by her choice (she decided to change careers.) Everyone else who has become a part of my team still works with me. And it is simply because I give them lots of room to grow, I authentically share how awesome they are (cause they are, and no you can’t have them… hehe) and I lead them to be empowered to take ownership of their role and the amazing things they create.
It’s just as simple as that.
How about you? Do you have a team that will stick with you? If not, which area could use a little sprucing up? Post/share your comments below.
“It’s too expensive!” or “I can’t afford it right now”… if this stops you from investing in the things you WANT and that you know will help you, then I invite you to watch this video to find out how successful people think differently about spending money.
I’m asked all the time about what tools I’ve used to build my business online.
WordPress is one of my top 3 and it’s the backbone of ALL of my websites.
So how do you use it? Enter in my amazing friend Sandra DeFreitas who has just released the third version of her book “Does This Blogsite Make My Wallet Look Fat?“… a step-by-step guide to setup your own website so that it makes you money. (cha-ching!!)
Check out this video interview with Sandra and hear why you too should be using WordPress for all of your websites. (warning – Sandra & I get a bit silly in this video… but I’m sure you won’t mind
*NOTE* Be sure to enter your contact info below and be entered into a draw for a free copy of Sandra’s book “Does This Blogsite Make My Wallet Look Fat?“