Here are some tips for businessmen on how to get the best return on investment in their people:
§ If you can’t afford to get the best talents now hire the young who can be the best. Invest in developing young people with potential and train them to become your future leaders.
§ Understand your business and design your structure and systems in a way that people can move up in either the managerial or technical ladder and still get amply compensated. Pay not only for the position, but also for performance, potential and the person.
§ Gauge people’s potential and assign more challenging jobs to high-potential employees. Don’t train everybody the same way. Provide more training for people who will move up high in your organization. Train them to do their present jobs well and prepare them for the future jobs.
§ Use pay to communicate if you want to keep your people or not. Stop paying the same for similar positions. Differentiate and discriminate according to value contributed by your talents.
§ Stop giving annual salary increases to recognize great performance. Install an incentive plan where people can get substantial bonus if they contribute to making the organization profitable. This way, your payout is self-liquidating and cost-neutral. If you don’t make profits, you have no obligation to pay more, unless mandated by government.
§ Never tolerate mediocrity if you want a culture of excellence. As you recognize and honor excellent performance, punish poor performance or undesirable behavior, in accordance with procedures specified by law.
§ Respect individuality, encourage people to unleash their talents, and create an environment where people can be free to think, decide, or worry. Replace the fear with fun in the workplace.
§ Periodically give feedback to your people on their performance, and ask for their opinion on issues affecting them – leadership, communication, engagement, compensation, etc.
§ The market dictates what skills and competencies your people should have. The market needs do change over time. Continually sharpen your people’s skills by giving them challenging tasks so that they can be in top form and they can be in top form and they will be market – competitive always.
§ Have a variety of programs to attract, retain, motivate and engage your people in ways that make them add more value to your organization, as they increase their own market value.
Your organization is never too small to consider doing the above suggestions. Regardless of your size, you are not spared from the challenge of the future – how to make your people provide the competitive advantage that you want to have.
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