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STOP SALARIES AND HOURLY PAY IMMEDIATELY IF YOU WANT TO THRIVE!

TOP SALARIES AND HOURLY PAY IMMEDIATELY IF YOU WANT TO THRIVE!


LESSON: Immediately change your compensation plans to make all employees and owners’ compensation directly tied to their personal performance and the overall company performance. That is it!


95% of a company’s success is tied to the compensation plans for all stakeholders. That is a fact I have been pounding on the table about for 30 years. All the rest is noise. Adam Smith in 1776 wrote in The Wealth of Nations, “It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest.”


For all the companies we support, this is the first discussion we have to change the culture, profitability, and stock value. But it is a huge pain in the you know what to implement, and that’s why 99% of companies do not take the time. It requires math, creativity, difficult conversations, and a commitment for the owner(s) to be just as committed to success. Lazy people cannot wrap their brains around this aligned system of capitalism.


We all have business moments we will never forget. One of mine was when, as a 27-year-old rookie stockbroker, I entered Manager Mr. Schantz’s office and nervously sat in one of the two huge maroon leather chairs in front of his massive desk. I said, “Mr. Schantz, I first want to say I am very thankful for this small rookie salary to help my young family survive, but if I’m reading the manual and goals sheet correctly, and if I hit the targets I am attempting to achieve, if I refuse my salary and go on full commission, I would make double the income simply from doing what I committed to you to do. So may I stop my salary you are paying me?”


Mr. Schantz, a two-time Vietnam tour helicopter pilot, almost couldn’t stop laughing and said, “Absolutely, Martinovich! I will stop paying you today!” I jumped out of my seat, shook his hand, and ran back to my office terrified and picked up the phone immediately. It was the best day of my career.


Now, pay attention, this is not just for salepeople. In our firms this applies to everyone, even the receptionist. The receptionist, pretty much the most important position in the firm, is paid based on a review of her/him, plus the firm as a whole, plus attends the reward trip with their spouse just like the top sales/financial winner. This is why they run down the hallway to get the lead producer off the phone with their golf buddy to instead take the phone call from our large client because everyone knows the mission!


Last point. Everyone’s compensation must be based on 1) what they directly control daily (close to them), and 2) the success of the firm as a whole. So, it takes great effort to set up correctly, and it takes quarterly detailed evaluations. This is why almost nobody does it. But if you do, it will trump everything else you do in your business. Trust me on this one! You will thrive beyond everything you thought possible, especially in this current era when socialism and communism are finding favor with all idiots. The competition could never be easier!


Have a great week! Don’t be Mentally Lazy!


Speaking Engagements: www.jeffmartinovich.com





 
 
 

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