Overall, I personally try to be a very fair person. It’s not a matter of what’s right or wrong, but what’s fair in life that generally makes people the most happy. Most of the time that’s a compromise between the two. Similar to the verbiage that there’s two sides to every story, and then there’s what’s in the middle.
Long story short(er), over the past few months Hakim (CEO / Pres) of a large company have been talking to better understand what’s happening in the market place with our business verticals we are chasing and how we can be more effective and be better stewards of our employees.
In our markets (financial) in particular compensation packages have become so aggressive for individuals that you can literally take your annual salary and multiply it by 3 at the end of the year because of how much revenue you will generate. This allows the companies to make absolute sh*t tons of good revenue (and profit) and also allows the employees to live like kings! The owner’s take their fair share, dont get me wrong.. But at the end of the day it is a win-win for everyone involved.
As of late, Hakim has been getting nailed because he sees almost no value in paying his employees like this to allow them to be successful and life a comfortable life. Ultimately, there is a “sweet spot” in his business market that really caps out their employees. Not that you COULDN’T make more money, but why would you try harder and bust ass for longer hours is the compensation only allowed you to come out with “X” or a certain variation of “X”. Literally, his employees sit there and manage what they sell and bring to the table so that they hit their “sweet spot” and nothing more, because it makes no sense to. If you make 100K more, you’re going to get nailed on taxes on the other side, and then your incentive package get’s tighter.
Our firm does not operate like this, nor do we believe in capping anyone performance wise. Technically, there isn’t a cap at Hakim’s place, but where’s the incentive to bring more business to the table when the ROI (return on investment) is shit once you hit a certain point?
Far too often companies look at their employees like commodities that can be replaced, that are “lucky to have a job”, and so on. That is a relevant way to look at employees if you are working at McDonalds and you’re the master of the frying station but likely, even the person at McDonalds wants to advance into a career path. When you have employees bringing in clients ranging from 250K – 10M, you really need to lose that mentality as a business owner / operator of the company. THAT is the kind of mentality that drives employees away and ultimately retards the growth path of a companies potential revenue stream. Businesses have momentum in their revenue cycles, and you need to be able to capitalize on those, and allow your employees to capitalize on those.
If you are in the position to instill a positive growth mentality weather is be professionally or personally, do it. Nobody every grew a company by letting incentives fall behind, or be treating the employees this way. Weather you think you are or not, i suggest you disconnect from you position for a day, and put yourself in the shoes of those who actually make your business or operation tick. You sit in an office and “watch the books”… Not to be a d*ck, but there’s 23 year old business majors that can ” watch the books” fresh out of college with how these kids are coming out of school now. Are YOU the one developing the business, developing the relationships, sacrificing your life, your family, your time, for the well being and common goal of building the company?
If you’re the one that’s “watching the books”, likely not…
Look at it like this… The CEO of an Airline walks into the room like a cocky asshole, and tells the Pilot who is about to fly the plane, “This is MY Airline”… What’s the Pilot’s response going to be? “Well, then fly YOUR OWN f*cking plane”….
Don’t be told to fly your own f*cking plane. Disconnect and listen.
Remember, this is business. For everyone.