Posts Tagged ‘employees’

Takes So Little Money To Get People To Do Things

Thursday, December 17th, 2009 by Alan Yu

I was looking at various sites that were offering people incentives to reveal inside company promotions where the general public would not normally know about until the actual time period of the event. The incentive isn’t that much too as we are talking like $20+. Sure enough, a lot of people go ahead with it.

Thinking about this, essentially those people are jeopardizing their careers for a measly $20 or so. That just shows you how far a dollar can go to get people to do some crazy things. As well, I was just reading this advertisement about a company paying people to solicit their friends to attend its event. The compensation? 10 cents per friend.

I guess from a business and marketing point of view that shows how even with the minimalist of budgets as long as you target the right people you can do anything.

Profits Aren’t Everything They Are The Only Thing – Chapter 14

Tuesday, October 27th, 2009 by Alan Yu

Looks like book is coming to an end as this is the second last chapter titled “Teamwork Is Vastly Overrated.” It’s kind of similar to the other points I read in the other chapters where Cloutier emphasizes that employees and your business structure should be follow a military type of setup. Basically, you are like the leader and they are just soldiers.

He essentially focuses specifically in this chapter on those issues. He is going for the polar opposite advice as opposed to what most people would give you about establishing a happy and productive work environment through a teamwork mentality. I’m sure everyone has heard the phrases such as there is no “I” in teamwork and that everyone should be treated as if they are the same.

Throughout this chapter he gives so many examples on how relying on a “team” to get things done can be disastrous where it’s like there is no leader and everyone is doing their own thing. He also notes that he feels employees actually want to be delegated as they want to know what is expected from them while following a strong structure. So you as the small business owner should always have a full hands on approach in controlling everyone. People shouldn’t be answering to you and not amongst themselves.

Another fallback of a team, especially in a small business, is he mentions how a team is only as strong as its weakest link. With that in mind, Cloutier goes back to how you have to have a system that rewards and punishes people individually based on results. He even goes as far as implying if an employee wants personal growth he/she should just go to a seminar on their own time.

Cloutier’s advice really is on the far side compared to others I must say. One more chapter to go.

Profits Aren’t Everything They Are The Only Thing – Chapter 9

Thursday, October 22nd, 2009 by Alan Yu

“I Am Your Work God!” was the colorful title for this section of the book. It was pretty familiar advice I thought in terms of taking the more no nonsense and non emotional approach to running a business. It revolved around handling employees and that you need to make sure that everyone follows orders. It’s that mentality too where people don’t have to like you but they should respect you.

The way Cloutier gives this advice though is a little surprising. Example, he says things like turnover is usually good as you can in a sense constantly get more motivated workers that way. As well, it seems like he thinks the whole notion of a friendly and nurturing environment is garbage as fear is the best motivator. He doesn’t like it when workers think, such as having different ideas on how to do things, as he just wants them to obey.

Another way he puts it is that he feels a business is not a democracy as you should be the end all decision maker. If you are too light then people will make all the excuses in the world costing you time and money where you need to get rid of them. I suppose you can say it’s more of an army commander type of mentality he encourages.

Profits Aren’t Everything They Are The Only Thing – Chapter 8

Wednesday, October 21st, 2009 by Alan Yu

Okay, I think you need like a human resource consultant or lawyer before implementing any of the tips in this chapter. It is titled “Pay For Performance” and it revolved around how you should set everyone in the business with a compensation structure where their paycheck can increase or decrease based on performance. Very much like a commissioned sales person. If you must pay someone a base as a result of stipulations such as people being in a Union then you should pay them the lowest base salary and make them earn the rest through a bonus structure.

As well, Cloutier was expressing how it’s not good enough if your pay for performance structure is a one lump some setup such as how companies have a year end Christmas bonus if the company does well. Basically, with this no one has the urgency in between to do well.

He used examples too of companies that he convinced to implement this type of compensation structure. Not surprisingly, the majority of the employees disliked this and quit. Just as fast as they quit he mentioned that they were able to find new replacements. The profits and productivity have soared since then.

Now here was the biggest shocker. He mentioned that even for his own company when someone does something bad he would deduct their pay. Example, he said that he began to deduct $50 when people failed to return calls within thirty minutes. Not surprisingly, people smartened up afterwards.

I have no idea how you can do that with an employee. Example, to my knowledge you can’t just deduct an employee’s wage if they did something bad. If these were like contractors or business partners then that would be completely different. So that’s why I say that you should really research this and the laws in your area.

There was also an interesting point on how employees like the job security though and so this type of plan wouldn’t fly in most cases. Cloutier then tries to counter that view by saying there is no such thing as job security and that it is actually more secure this way since people are in control of their pay in many ways and can make more.

Overall, I personally agree with the underlying message here where it makes most sense to have a structure where people are rewarded and compensated from producing results. In many ways I think many people have too much of an entitlement mentality when it comes to earning money.

In some ways you can say that it is just better to be an entrepreneur if you have to work under this type of pressure. Another way I see it is that you basically are an entrepreneur except you don’t have to pay for all the expenses in running a business.

Blogging If You Are A New Employee

Wednesday, February 11th, 2009 by Alan Yu

There was a very interesting piece of news today in regards to a local bus driver that got fired as a result of a blog that he maintained. The situation basically was that the person was a newly hired as a bus driver and was currently within his 6 month probationary period. As it turns out, he thought that it would be a great idea to blog about his experiences about his new job to friends and family members. A point of note, this was a career change for him from a freelance writer.

People here know that during the past month or so snow has been horrible here and as a result the transit system was put to its knees in many ways. The person then blogged about his opinion of the situation such as how he thought there was a lot of disorganization in the company. As it turns out, the transit company found that offensive and therefore they fired him on that basis.

As it turns out, since he was in a 6 months probationary period the company could fire him for any reason similar to most other companies too. Interesting enough, if he had waited 6 months after and then wrote the post it would have been a semi different story. So that should make you think about the digital medium and sharing your thoughts if you are a newly hired person.

I found this interesting too as there are actually companies nowadays that promote blogging as a way to get further exposure for a company and our transit system here actually has a public blog. Makes you wonder why they didn’t just find a way to work with his abilities in that sense instead.