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It appears very simple, eh? "Do unto others as you would have them do unto you." The Golden Rule appears so all-inclusive that it could be a panacea for all human relations. Just treat everybody the same way you would appreciate being treated and all will run wonderfully, right? Just a second... Something is off... Does your twenty-something top gun account rep aim for the exact same things out of their work that your forty office clerk wants? Is your technical staff aiming for the same goals and reimbursement as your secretary? Apparently, their desires are quite unique, though too many business owners apply a one-size fits all method when rewarding their most important employees. When a big contract is completed, everybody receives the same thing, whether you buy them lunch or a gift certificate. Delivering an identical reward to the whole team is what's fair, right? But is it really fair for the top staff? Retain the Top Staff Startlingly few entrepreneurs realize that the Pareto Principle lesson about their team teaches that a few of their team are producing the bulk of your entire business' bottom-line. In addition, just about every management book talks about case studies comparing the productivity of the top team members to the least capable (yet still useful) team members. The gap between the best and worst have been reported as high as 100 to 1. The nearest these numbers ever seem to approach is at best 4:1. So now how much more does this extraordinary variance in value end up costing? Assuming that your yearly cost for the least capable staff member is $30,000, how much are you paying your top staff? Since a fair bit of the costs for staff are fixed, those costs don't go up in relation to base salary. For the intent of this example, let's use some worst-case numbers, $60k. Assuming that your $30k person generates $30k of value (otherwise you'd let them go, right?). If your top employee is a measly four times more productive than the worst, they deliver far more value for how much more they cost. If you pays for more training for the low-end players, costs instantly go up, but without any guarantee that productivity will likewise go up. Think about what part of your time is factored into the "cost" of this moderately competent employee? Probably none. Management costs are usually invisible, factored away as overhead. It certainly feels like you're being productive - trying your hardest to bring along the strugglers, hoping that they eventually rise above their shortcomings. Consider how much of your time is spent with either of these employees:
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It looks so very simple, don't you think? "Do unto others as you would have them do unto you." The Golden Rule appears so undisputed that it could be a solution for every relationship. Simply act toward everyone the same way you would prefer to be taken care of and everything will run wonderfully, right?
The Peter Principle explained Abraham Maslow's Hierarchy of Needs explained Daiv Russell is a small business management and marketing consultant with Envision Engineering.
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