Our business colleagues have chastised us for “overpaying” our sales people. They’d say, “Aren’t you afraid they will make more than you?” Actually, we had several sales people who made more than we did.

When we looked at the efficiencies of scale, the value of stability, and the increase in sales, we knew we were doing the right thing. So, why should you apply this winning philosophy to your business?

1. Reduce Your Turnover. Turnover is the largest hidden cost in business. It can take up to six months to find and train a new person. There is no guarantee that this new person will work out, either. You may have to start all over again with someone new. This can go on for quite a while until you get the right person.

Now you have someone who will be under-producing until he or she is fully trained. You also lose the time of the new hire’s trainer, who now has two jobs to do. Both jobs suffer. And the relationships built by the person who left could either be dropped or taken away by the departing employee. These must be re-built.

Remember, top performers who get a “piece of the action” are generally loyal and truly concerned about the welfare of your business.

2. Attract the Go-Getters. People who know they are excellent at their jobs want to work for a company that compensates them based on their performance. People who are less productive can’t afford to work for a company that has performance-based compensation plans.

When your job candidates ask where your profit centers are and how that flows into their paychecks, you should realize you are talking to a go-getter. Keep your performance metrics well thought out and achievable.

Rewarding for growth over same month last year is a good start. Averaging last year’s prior and subsequent months with the same month will smooth out most anomalies. Renegotiate profit-sharing bonuses annually.

3. It’s Free! If you know the profit of your business now, and you know your rate of growth for the past few years, any increase in that rate of growth attributable to your people’s performance is “found money.” When you cut an employee in for a piece of your increased profit, he is motivated to produce even more. It really costs you nothing. Just make sure the payment is tied into profitability, and not based solely on “growth.”

You are paying too much for labor when you pay for “attendance” alone. It’s their production you really want, because that is where your profits come from.

Why settle for 100% of a smaller pie when you can have more pie by taking a smaller piece of the larger pie others helped you get. When it comes to growing your business fast, it pays to share the wealth.

Who We Are

Michael Houlihan and Bonnie Harvey co-authored the New York Times bestselling business book, The Barefoot Spirit: How Hardship, Hustle, and Heart Built America’s #1 Wine Brand. The book has been selected as recommended reading in the CEO Library for CEO Forum, the C-Suite Book Club, and numerous university classes on business and entrepreneurship. It chronicles their humble beginnings from the laundry room of a rented Sonoma County farmhouse to the board room of E&J Gallo, who ultimately acquired their brand and engaged them as brand consultants. Barefoot is now the world’s largest wine brand.

Beginning with virtually no money and no wine industry experience, they employed innovative ideas to overcome obstacles, create new markets and forge strategic alliances. They pioneered Worthy Cause Marketing and performance-based compensation. They built an internationally bestselling brand and received their industry’s “Hot Brand” award for several consecutive years.

They offer their Guiding Principles for Success (GPS) to help entrepreneurs become successful. Their book, The Entrepreneurial Culture: 23 Ways To Engage and Empower Your People, helps corporations maximize the value of their human resources.

Currently they travel the world leading workshops, trainings, & keynoting at business schools, corporations, conferences. They are regular media guests and contributors to international publications and professional journals. They are C-Suite Network Advisors & Contributing Editors. Visit their popular brand building site at www.consumerbrandbuilders.com.

To make inquiries for keynote speaking, trainings or consulting, please contact sales@thebarefootspirit.com.

The post Grow Your Business Faster by Sharing the Wealth appeared first on The Barefoot Spirit.

The problem is that nothing remains the same for very long. Constant operational changes and market pressures can make even new job descriptions obsolete within months. Job descriptions should be seen as living documents that require frequent updating.

Particularly in start-ups where duties and responsibilities are evolving, job descriptions should not be taken too literally. Entire functions can suddenly shift or be outsourced, leaving your staff questioning what they are supposed to do. Here are some principles about job descriptions we have found helpful:

• Hire the person, not the job. The job you hired them for may not be the job in which they excel. The person may be worth keeping even if they are not performing well in their original job. If they demonstrate the ethics and quick learning abilities you seek, they will apply those attributes no matter what they are doing. You may soon discover they are better suited for some other job.

• Cover all the bases (but not necessarily by the same person). When you organize your business, don’t forget to take a micro view of each job description. Your goal is to cover all the bases with the people who are best suited to handle those components. By identifying the components independent of the job descriptions, you become more flexible and have the luxury of building the job for the person instead of the other way around.

• Define the job in customer service terms. Every job description should begin with a preamble that states what your company produces and how this particular job helps make that happen. Make sure everyone gets a flow chart that shows how their paycheck, bonus and benefits get from your customer to them. Identify the performance gauging metrics for each job. Develop pay for performance compensation systems based on your company’s sales.

• Reorganize often. Every time someone leaves your company, you have an opportunity to reshuffle the deck. Match your people’s personal skills with the various tasks in your company. Ask each member of your staff if they are happy with the assorted components of their jobs. Put the components of the job just vacated up for discussion. You may be surprised at the horse-trading that takes place! The job opening you end up with may look quite different from the one that was just vacated.

• Let your people write their own job descriptions. Every year have your people update their job descriptions with what they are really doing now. This will help with training in the future and send your people a message that you value them and their approach to the job more than a static description that may be obsolete. Give your staff a chance to discover more efficient ways to perform or communicate. They will take ownership of the performance metrics if they have a voice in their creation and refinement.

Keep your company up to date. Engage your people in the process of creating and updating their own job descriptions. Allow them to show you where they excel. Make the job description a current, living snapshot, and not a stale, portrait, wall hanging.

Who We Are

Michael Houlihan and Bonnie Harvey co-authored the New York Times bestselling business book, The Barefoot Spirit: How Hardship, Hustle, and Heart Built America’s #1 Wine Brand. The book has been selected as recommended reading in the CEO Library for CEO Forum, the C-Suite Book Club, and numerous university classes on business and entrepreneurship. It chronicles their humble beginnings from the laundry room of a rented Sonoma County farmhouse to the board room of E&J Gallo, who ultimately acquired their brand and engaged them as brand consultants. Barefoot is now the world’s largest wine brand.

Beginning with virtually no money and no wine industry experience, they employed innovative ideas to overcome obstacles, create new markets and forge strategic alliances. They pioneered Worthy Cause Marketing and performance-based compensation. They built an internationally bestselling brand and received their industry’s “Hot Brand” award for several consecutive years.

They offer their Guiding Principles for Success (GPS) to help entrepreneurs become successful. Their book, The Entrepreneurial Culture: 23 Ways To Engage and Empower Your People, helps corporations maximize the value of their human resources.

Currently they travel the world leading workshops, trainings, & keynoting at business schools, corporations, conferences. They are regular media guests and contributors to international publications and professional journals. They are C-Suite Network Advisors & Contributing Editors. Visit their popular brand building site at www.consumerbrandbuilders.com.

To make inquiries for keynote speaking, trainings or consulting, please contact sales@thebarefootspirit.com.

The post Job Descriptions – A Portrait or Snapshot appeared first on The Barefoot Spirit.